New Mexico leaders weighing possible special session of legislature

 

The state of New Mexico might soon see a special legislative session to deal with the impact of not only the coronavirus but the oil and gas price war caused by Saudi Arabia and Russia.

New Mexico Gov. Michelle Lujan Grisham was notified by legislative leaders by letter last week that they want a special session because the price war and the virus could have devastating affects on the state government budget.

The New Mexico Political Report said Gov. Grisham first wants to receive new projections on state revenue.

House Republican leadership sent a letter to the governor on Thursday calling for a special session to adjust the budget. And Senate Finance Committee chairman John Arthur Smith told the Albuquerque Journal the state could be facing a billion dollar loss in revenue because of oil and gas prices.

But Lujan Grisham said in a letter that her focus is currently on stemming the tide of the COVID-19 pandemic and that they need more time to fully assess the economic impacts.

“My entire administration recognizes that we are in the midst of an unprecedented and critical public health crisis,” she wrote. “As you would expect, our attention is focused, first and foremost, on addressing the public health aspects of the emergency.”

She mentioned that she is in “daily communication with hospitals and other providers” in anticipation of a surge in hospitalizations related to COVID-19, as has occurred in other states and countries that have been hard-hit by the disease, caused by a coronavirus.

In their letter to the governor, Republicans said a special session is necessary because of the state’s budget situation.

“The double-edged sword of the actions taken to protect New Mexicans from COVID-19 and rapidly declining oil prices are increasing economic uncertainty across our state; not to mention the devastating impact on state government as revenues are plummeting,” the Republican leadership wrote.

Oil and gas prices are plummeting worldwide for a number of reasons, including the reduction in worldwide demand because of COVID-19 and an increase in supply from Saudi Arabia, which can still be more profitable with lower prices than production in the Permian Basin.

The Republicans’ letter said they believed that options “on the table” for a special session should include keeping spending at 2020 levels “until new revenue estimates can be established,” rolling back funds and programs that didn’t exist in previous budgets and allowing tax filers ninety extra days to pay state taxes without penalty or interest.

Lujan Grisham said she has also been in contact with legislative leadership and staff to discuss  how they might be able to hold a special session without having “simultaneous, in person participation of every member.”

The governor has banned gatherings of more than ten people in an attempt to slow the spread of COVID-19. Already, 35 people have tested positive for the disease in the state.

Source: New Mexico Political Report