SENATE FINANCE COMMITTEE SUBSTITUTE FOR
SENATE BILL 79
49th legislature - STATE OF NEW MEXICO - first session, 2009
AN ACT
RELATING TO STATE EXPENDITURES; REDUCING CERTAIN GENERAL FUND APPROPRIATIONS; TRANSFERRING MONEY TO THE GENERAL FUND FROM OTHER STATE FUNDS, INCLUDING THE TAX STABILIZATION RESERVE; CHANGING THE DISTRIBUTIONS FROM CERTAIN FUNDS; MAKING APPROPRIATIONS FROM OTHER STATE FUNDS AND CERTAIN FEDERAL FUNDS; REPEALING CERTAIN APPROPRIATIONS; DECLARING AN EMERGENCY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 2008 LEGISLATIVE BRANCH APPROPRIATIONS--REDUCTIONS.--
A. All general fund appropriations in Section 9 and Subsections A, B and C of Section 3 of Chapter 1 of Laws 2008 are reduced by three and two-tenths percent rounded to the nearest one hundred dollars ($100); provided that the New Mexico legislative council may transfer amounts from any of the appropriations in Laws 2008, Chapter 1 to any other legislative expenditure where they may be needed to effectuate government efficiency.
B. All general fund appropriations in Laws 2008, Chapter 1, Section 4 are reduced by two and one-half percent rounded to the nearest one hundred dollars ($100).
C. After the reductions pursuant to Subsections A and B of this section, each amount appropriated from the general fund in Laws 2008, Chapter 1, Sections 3, 4, 5, 7 and 8 in the personal services and employee benefits category of each legislative agency is further reduced by an amount equal to two and one-half percent of the amount of the general fund appropriation in Section 8 of the General Appropriation Act of 2008 that was distributed to that agency, provided that each agency shall use category transfers, cash balances, vacancy savings and other available funds to provide the salary increases provided for in Section 8 of the General Appropriation Act of 2008 and Laws 2008, Chapter 6, Section 43.
D. Prior to June 30, 2009, the New Mexico legislative council may reduce any general fund appropriations in Laws 2009, Chapter 1, Section 1, provided that the total amount of the reductions shall not exceed two and one-half percent of the total general fund appropriations in that section.
Section 2. 2008 SPECIAL APPROPRIATIONS--REDUCTIONS.--The balances of all general fund appropriations in Laws 2008, Chapter 6 that were unexpended or unencumbered on the effective date of this act are reduced by seven and three-tenths percent rounded to the nearest one hundred dollars ($100).
Section 3. AUTHORITY TO REDUCE ALLOTMENTS.--
A. If, in this act or any other act of the first session of the forty-ninth legislature, a general fund appropriation or budget is reduced and funds in excess of the amount of the reduced appropriation or budget have already been allotted to the agency receiving the appropriation, the department of finance and administration may reduce any other general fund allotment to the agency in order to recoup the overallotment of the reduced appropriation or budget. In the case of an appropriation made to one agency but disbursed or transferred to another agency, the department of finance and administration may reduce any other general fund allotment to the agency to which the appropriation was disbursed or transferred in order to recoup the overallotment of the reduced appropriation or budget. The authority provided in this section is additional to any other power the department of finance and administration has to remedy overallotments, and the grant of authority in this section shall not be deemed to be a legislative determination that the department of finance and administration does not otherwise have the authority provided in this section.
B. As used in this section, "agency" means any department, institution, board, bureau, commission, district or committee of government of the state and means every office or officer of any of the above.
Section 4. FUND TRANSFERS.--
A. Notwithstanding any restriction on the use of money in the funds, the following amounts from the following funds are transferred to the general fund for the purpose of meeting appropriations from the general fund:
(1) fourteen million five hundred thousand dollars ($14,500,000) is transferred from the college affordability endowment fund;
(2) one million seven hundred fifty thousand dollars ($1,750,000) is transferred from the public election fund;
(3) eight hundred thousand dollars ($800,000) is transferred from the public pre-kindergarten fund;
(4) five hundred thousand dollars ($500,000) is transferred from the juvenile continuum grant fund;
(5) one million five hundred thousand dollars ($1,500,000) is transferred from the day-care fund;
(6) eight million dollars ($8,000,000) is transferred from the telecommunications access fund;
(7) one million dollars ($1,000,000) is transferred from the corrections department intensive supervision fund;
(8) five million dollars ($5,000,000) is transferred from the workers' compensation administration fund;
(9) three million dollars ($3,000,000) is transferred from the juvenile community corrections grant fund;
(10) five hundred thousand dollars ($500,000) is transferred from the New Mexico youth conservation corps fund;
(11) one million dollars ($1,000,000) is transferred from the board of nursing fund;
(12) six hundred thousand dollars ($600,000) is transferred from the higher education endowment fund;
(13) one million five hundred thousand dollars ($1,500,000) is transferred from the electronic voting system revolving fund;
(14) four hundred thousand dollars ($400,000) is transferred from the insurance fraud fund; and
(15) one hundred thousand dollars ($100,000) is transferred from the motorboat fuel tax fund.
B. One million dollars ($1,000,000) of the unexpended balance of the amounts allocated from the water project fund to the administrative office of the courts pursuant to Subsection A of Section 72-4A-9 NMSA 1978, and derived from funds other than distributions from the water trust fund, is transferred to the general fund.
C. Notwithstanding any provision of Section 22-24-4 NMSA 1978, fifty-eight million four hundred thousand dollars ($58,400,000) is transferred from the public school capital outlay fund to the general fund for the purpose of meeting appropriations from the general fund. The money transferred represents a portion of the amount of the general fund appropriation made in Laws 2006, Chapter 111, Section 66 and recouped by the offset of allocations that would have been made to school districts for the state share of projects pursuant to Section 22-24-5.7 NMSA 1978.
D. Notwithstanding the provisions of Section
22-25-10 NMSA 1978, five million five hundred thousand dollars ($5,500,000) of the unexpended proceeds of taxable severance tax bonds is transferred from the public school capital improvements fund to the general fund.
Section 5. Section 6-4-9 NMSA 1978 (being Laws 1999, Chapter 207, Section 1, as amended) is amended to read:
"6-4-9. TOBACCO SETTLEMENT PERMANENT FUND--INVESTMENT--DISTRIBUTION.--
A. The "tobacco settlement permanent fund" is created in the state treasury. The fund shall consist of money distributed to the state pursuant to the master settlement agreement entered into between tobacco product manufacturers and various states, including New Mexico, and executed November 23, 1998 or any money released to the state from a qualified escrow fund or otherwise paid to the state as authorized by the model statute, Sections 6-4-12 and 6-4-13 NMSA 1978, enacted pursuant to the master settlement agreement. Money in the fund shall be invested by the state investment officer as land grant permanent funds are invested pursuant to Chapter 6, Article 8 NMSA 1978. Income from investment of the fund shall be credited to the fund. Money in the fund shall not be expended for any purpose, except as provided in this section.
B. In fiscal years 2003 through 2006, a distribution shall be made from the tobacco settlement permanent fund to the general fund in an amount equal to one hundred percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year.
C. In fiscal year 2007 and in each fiscal year thereafter, an annual distribution shall be made from the tobacco settlement permanent fund to the tobacco settlement program fund of an amount equal to fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year until that amount is less than an amount equal to four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. Thereafter, the amount of the annual distribution shall be four and seven-tenths percent of the average of the year-end market values of the tobacco settlement permanent fund for the immediately preceding five calendar years. In the event that the actual amount distributed to the tobacco settlement program fund in a fiscal year is insufficient to meet appropriations from that fund for that fiscal year, the secretary of finance and administration shall proportionately reduce each appropriation accordingly.
D. In addition to the distribution made pursuant to Subsection C of this section, in fiscal year 2009 and in fiscal year 2010, the remaining fifty percent of the total amount of money distributed to the tobacco settlement permanent fund in that fiscal year shall be distributed from the tobacco settlement permanent fund to the tobacco settlement program fund.
[D.] E. The tobacco settlement permanent fund shall be considered a reserve fund of the state and, as a reserve fund, may be expended in the event that general fund balances, including all authorized revenues and transfers to the general fund and balances in the general fund operating reserve, the appropriation contingency fund and the tax stabilization reserve, will not meet the level of appropriations authorized from the general fund for a fiscal year. In that event, in order to avoid an unconstitutional deficit, the legislature may authorize a transfer from the tobacco settlement permanent fund to the general fund but only in an amount necessary to meet general fund appropriations."
Section 6. Section 59A-53-5.2 NMSA 1978 (being Laws 2007, Chapter 152, Section 1) is amended to read:
"59A-53-5.2. APPROPRIATIONS AND TRANSFERS FROM THE FIRE PROTECTION FUND.--
A. For each fiscal year, the amount to be distributed by the marshal pursuant to Sections 59A-53-4,
59A-53-5 and 59A-53-5.1 NMSA 1978 is appropriated from the fire protection fund to the commission for the purpose of making the distributions.
B. For the purposes of Subsections C and D of this section, the "remaining balance in the fire protection fund" shall be calculated on June 30 of each year and shall equal the balance of the fund on that date less the sum of:
(1) the total amount to be distributed during the succeeding fiscal year pursuant to Sections 59A-53-4, 59A-53-5 and 59A-53-5.1 NMSA 1978; and
(2) the total amount of other appropriations from the fire protection fund for the succeeding fiscal year.
C. On the following dates, the following percentages of the remaining balance in the fire protection fund shall be transferred from the fire protection fund to the fire protection grant fund:
(1) on June 30, 2007, six and seven-tenths percent;
(2) on June 30, 2008, thirteen and four-tenths percent;
(3) on June 30, 2009, thirteen and four-tenths percent;
(4) on June 30, 2010, thirteen and four-tenths percent;
[(3)] (5) on June 30, [2009] 2011, twenty and one-tenth percent;
[(4)] (6) on June 30, [2010] 2012, twenty-six and eight-tenths percent;
[(5)] (7) on June 30, [2011] 2013, thirty-three and five-tenths percent;
[(6)] (8) on June 30, [2012] 2014, forty and two-tenths percent;
[(7)] (9) on June 30, [2013] 2015, forty-six and nine-tenths percent;
[(8)] (10) on June 30, [2014] 2016, fifty-three and six-tenths percent;
[(9)] (11) on June 30, [2015] 2017, sixty and three-tenths percent;
[(10)] (12) on June 30, [2016] 2018, sixty-seven percent;
[(11)] (13) on June 30, [2017] 2019, seventy-three and seven-tenths percent;
[(12)] (14) on June 30, [2018] 2020, eighty and four-tenths percent;
[(13)] (15) on June 30, [2019] 2021, eighty-seven and one-tenth percent;
[(14)] (16) on June 30, [2020] 2022, ninety-three and eight-tenths percent; and
[(15)] (17) on June 30, [2021] 2023 and on each subsequent June 30, one hundred percent.
D. On June 30 of each year, the remaining balance in the fire protection fund, less the amount to be transferred on that date pursuant to Subsection C of this section, shall be transferred to the general fund; provided that no transfer shall be made pursuant to this subsection after June 30, [2020] 2022."
Section 7. Laws 2008 (2nd S.S.), Chapter 10, Section 1 is amended to read:
"Section 1. APPROPRIATION.--
A. [Thirty-two million five hundred thousand dollars ($32,500,000)] Five million five hundred thousand dollars ($5,500,000) is appropriated from the general fund to the human services department for expenditure in fiscal years 2009 and 2010 as follows:
(1) [ten million dollars ($10,000,000)] four million dollars ($4,000,000) to provide coverage for individuals enrolled in or eligible for the developmental disabilities medicaid waiver program; and
[(2) twenty million dollars ($20,000,000) to provide health care coverage for individuals through age eighteen in medicaid or state children health insurance program designed to reduce the number of children without coverage; and
(3) two million five hundred thousand dollars ($2,500,000) for]
(2) one million five hundred thousand dollars ($1,500,000) to enhance behavioral health services [to] for individuals through age eighteen with behavioral health care needs who are already enrolled in the medicaid program or the state children health insurance program.
B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2010 shall revert to the general fund."
Section 8. TEMPORARY ASSISTANCE FOR NEEDY FAMILIES CONTINGENCY FUNDS--APPROPRIATION.--Upon certification by the state board of finance that the human services department has received reimbursement from federal temporary assistance for needy families contingency funds for state expenditures meeting criteria for the temporary assistance for needy families program, twenty-two million one hundred thousand dollars ($22,100,000) of the amount received is appropriated to the human services department for transfer to the tax administration suspense fund for payment of the working families tax credit pursuant to Section 7-2-18.15 NMSA 1978.
Section 9. TOBACCO SETTLEMENT PROGRAM FUND--APPROPRIATION FOR MEDICAID.--Twenty-four million five hundred fifty thousand dollars ($24,550,000) is appropriated from the tobacco settlement program fund to the human services department for expenditure in fiscal year 2009 for the medical assistance program. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the tobacco settlement program fund.
Section 10. APPROPRIATION--PUBLIC SCHOOL SUPPORT.--Thirty-five million seven hundred fifty-three thousand six hundred dollars ($35,753,600) is appropriated from the appropriation contingency fund to the state equalization guarantee distribution for the purpose of supplementing the general fund appropriation to the distribution in fiscal year 2009. The appropriation is from the separate account of the appropriation contingency fund dedicated for the purpose of implementing and maintaining educational reforms pursuant to Laws 2004, Chapter 114, Section 12. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall not revert.
Section 11. TRANSFER--TAX STABILIZATION RESERVE.--Fifty-five million seven hundred thousand dollars ($55,700,000) is transferred from the general fund tax stabilization reserve to the fiscal year 2009 appropriation account of the general fund. The transfer is contingent upon the governor sending a message to the first session of the forty-ninth legislature that, pursuant to Subsection D of Section 6-4-2.2 NMSA 1978, general fund revenues, including transfers to the general fund, are projected by the governor to be insufficient to meet appropriations authorized by law from the general fund for fiscal year 2009.
Section 12. REPEAL.--Laws 2008, Chapter 50, Section 1 is repealed.
Section 13. CONTINGENCY.--The provisions of Sections 8 and 9 of this act are contingent upon the enactment into law of legislation of the first session of the forty-ninth legislature that reduces general fund appropriations in the General Appropriation Act of 2008.
Section 14. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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