The actions of New Mexico’s legislative committees and department heads over the next few months are going to heavily impact state employees.
As primary deliverers of services to New Mexicans, state employees are critical stakeholders who will be impacted by plans being developed to meet the state’s fiscal needs balanced against the COVID-19 induced economic problems and oil revenue declines.
As such, state employees should be consulted and ultimately included in decisions regarding budget making for Fiscal Year 2022, as well as any additional adjustments anticipated for Fiscal Year 2021, which began just three weeks ago.
It may require some sharp elbows to make room at the decision-making table, but equally important is the need to understand the menu.
CWA 7076 will be regularly posting to this website, updates on the activities of the legislature and administration as well as providing some ideas of how state employees can influence the decision-making that will affect so many lives.
During the Legislative Finance Committee (LFC) meetings held to weeks ago, there was a talk from moderate to conservative members of the New Mexico House and Senate about sweeping and cutting budgets – also about eliminating unfunded positions in state government.
Previous approaches to state budget-making are going to change significantly.
Federal funding will play an increased role in determining how other revenue – state generated revenue – is distributed in agency budgets.
The administration reported to the LFC how it is using the $2.58 billion in federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to date, as well as outlining challenges for how to use it under the federal guidelines.
This discussion on the CARES Act spending is critically important to CWA represented employees, as some agencies have potentially broad access and use of the CARES Act funds, while other agencies may be more restricted in using the funds.
For example, Debbie Romero, Acting Secretary, for the Department of Finance and Administration (DFA), distributed a handout at the LFC meeting which included this statement:
“U.S. Treasury has been clear that CRF may not be used to fill shortfalls in state revenue. However, more recent federal guidance allows for more flexible uses of the fund, including for payroll costs of public health and safety employees, distance learning, and for payroll for employees performing differently due to the public health emergency.”
This is important to Department of Health employees, as DFA also reported that “entire payroll costs for public health and safety agencies are by default considered eligible as those agencies are substantially considered to be dealing with the public health emergency, unless a chief executive officer determines otherwise.”
The Public Education Department will also be impacted by increased COVID-19 related federal funding, although the full extent is still being analyzed.
Congress is also developing another package to deal with the COVID-19 induced economic crisis.
There is still a ray of hope that the U.S. Senate will include provisions of the U.S. House of Representatives HEROES for state and local governments to deal with falling revenue due to the economic impact of COVID-19.
According to the Washington based Center on Budget and Policy Priorities New Mexico would gain an additional $4.7 Billion over two years – $2.1 billion in the first-year allocation for states under the HEROES Act, and $2.6 billion in the second year of the program.
As of today, the U.S. Senate Republican leadership is at best reticent on what to do for the states and local governement in their latest (and very late) COVID-19 emergency funding proposal.
The House’s HEROES Act has been on Senate Majority Leader Mitch McConnel’s desk since May, and he and the President have not showed much love to the states in their public comments.
However, as the pressure builds with the upcoming election, Republican Senators are going to feel the heat from state and local political leaders and the employees that keep America afloat.
The challenge for CWA represented employees will be to keep their eyes on the pitch selections being quietly developed at the LFC and inside the Lujan Grisham administration.