Health Plan, Rebates OK’d
Diminished, but delivered.
That was the fate of a handful of Gov. Bill Richardson’s proposals — including a tax rebate and increased health care coverage for children — as the Legislature adjourned a five-day special session early Tuesday evening.
Mindful of plunging surplus revenue projections, the state’s 112 part-time lawmakers approved pared-down versions of several top Richardson proposals before packing up and heading home.
All of the proposals awaited Richardson’s approval or rejection. Under the measures sent to the governor:
Tax rebate checks would top out at $50 per taxpayer instead of $120, and taxpayers with household incomes over $70,000 a year would get none.
Health care spending of $32.5 million was passed instead of the $58 million requested.
A total of $200 million earmarked for state highway projects will come mostly from bonds, not surplus money.
Legislative leaders said lawmakers had done the best they could given the economic realities.
“I think at least 80 percent of what (Richardson) requested was addressed,” said House Speaker Ben Lujan, D-Santa Fe. “The beneficiaries of all we did here are going to be the citizens.”
“We did our best,” said Senate Majority Leader Michael Sanchez, D-Belen.
He said work begun on health policy will continue in the regular legislative session that begins in January.
“Those issues are going to be with us for a while,” he said.
Richardson reacted to the spe- cial session work in a prepared statement.
“The winners are kids, working families and our most vulnerable citizens,” the governor said. “While the Legislature did not go as far as I would have liked to cover all children with health insurance, I believe modest, but solid gains were made toward that goal.
“I am particularly pleased that legislators agreed to provide permanent tax relief for working New Mexico families. These tax credits, on top of the modest rebates, additional child care assistance and funding for homeheating, will provide muchneeded relief for working families.”
The Legislature passed funding for Medicaid recipients, developmentally disabled residents and for behavioral health services, but it rejected or ignored almost all of the governor’s health care program, which Richardson said as early as last winter was the reason to call a special session.
Legislators rejected:
Creation of a new health care agency to administer health coverage programs and find ways to cover more New Mexicans.
Unifying the management of several public employee and retiree health coverage plans, including the Retiree Health Care Authority and the state employees’ plan.
Elec t ron ic med ic a l records legislation. Though House and Senate conferees came up with a medical records compromise, Sanchez did not allow it onto the floor for a vote. He promised “the correct version” of the bill will be heard in January’s regular session.
Requiring children to have health care coverage. Richardson’s plan did not provide a penalty to families whose children did not obtain coverage.
Requiring insurance companies to spend at least 85 percent of premiums on health care services.
Requiring insurance companies to offer to insure everyone, regardless of their medical condition.
Meanwhile, legislators approved a $5 million funding package for the flooddamaged Ruidoso area, an amount that exceeded the $3.6 million advocated by Richardson.
From the outset of the special session, lawmakers were wary of spending as much as Richardson wanted for his proposals. They cited declining revenue projections, which were dropping chiefly because of declines in New Mexico oil and gas production.
Many lawmakers thought they had about $100 million in surplus revenue to play with, not the $208 million the administration and the Legislative Finance Committee estimated at the session’s start.
The special session’s price tag will likely end up being about $250,000.
Special session, Aug. 15-19
What the Legislature sent to Gov. Bill Richardson
Rebates
Families and individuals earning up to $30,000 — $50 per taxpayer, $50 per dependent.
Those earning between $30,000 and $50,000 — $40 per taxpayer, $40 per dependent.
Those earning between $50,000 and $70,000 — $25 per taxpayer, $25 per dependent.
Those earning $70,000 or more — Nothing.
Checks would be sent to eligible New Mexicans by Thanksgiving.
Health care
Approved $32 million for health care programs, including $20 million to help expand medical coverage to uninsured children.
Tax credit
Increased personal income tax credit for low-income working families. Measure would provide average increase in benefits of $38 for families earning less than about $42,000 a year.
Highways
Approved $200 million for alreadyapproved state highway projects. Money won’t go toward operation of Rail Runner commuter train.
Other
Approved $1.9 million for a program that helps pay heating and cooling bills for low-income New Mexicans.
Approved $4 million to help school districts pay for higher school bus fuel costs.
