SENATE JOINT MEMORIAL 14

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Stephen H. Fischmann

A JOINT MEMORIAL

REQUESTING THE FORMATION OF A WORK GROUP TO STUDY AND MAKE RECOMMENDATIONS ON THE CONTRIBUTIONS THAT NEW MEXICO'S THREE RESEARCH UNIVERSITIES CAN MAKE TO THE ANALYSIS OF ECONOMIC DEVELOPMENT AND TECHNOLOGY SUPPORT PROPOSALS FOR TAX AND OTHER PREFERENCES.

     WHEREAS, the legislature is often asked to consider large economic development, tax preference, subsidy and technology support proposals on short notice; and

     WHEREAS, these proposals have significant impacts on state budgets and often create significant inequities in tax treatment between companies and industries and often require exceptions to the anti-donation clause; and

     WHEREAS, these proposals often involve new technologies that are poorly understood by legislators and whose validity has not been independently vetted by experts either through a review of the scientific literature or by direct verification; and

     WHEREAS, the legislative finance committee often has limited resources to analyze these proposals, and it may have to rely on information provided by those who stand to benefit financially as its sole source of information; and

     WHEREAS, taxpayers deserve the same due diligence in investing their tax dollars, either in tax expenditures, subsidies or other investments, that private investors routinely practice; and

     WHEREAS, the state's research universities often have the expertise to assist in understanding these issues and the resources necessary to study large investments in depth; and

     WHEREAS, involving the research universities will constructively engage faculty and students in urgent and meaningful public policy issues both to the state's benefit and their own;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the legislative finance committee staff, the higher education department and the state's three research universities be requested to form a work group to recommend ways to better use university expertise in performing independent analysis of economic development and technology support proposals for tax and other preferences; and

     BE IT FURTHER RESOLVED that the work group report its findings and recommendations to the legislative finance committee and other appropriate interim committees by November 2012; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the director of the legislative finance committee; the secretary of higher education; and the presidents of the New Mexico institute of mining and technology, New Mexico state university and the university of New Mexico.

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