LAS CRUCES - George Muñoz, D-Gallup, chairman of the New Mexico Senate Finance Committee, urged caution with state spending following the freeze on new oil and gas leases on federal lands announced this week by President Joe Biden.
Muñoz said the freeze would not stop the Legislature from addressing the state’s top priorities of helping businesses impacted by the COVID-19 pandemic and fully funding education. But, it may impact other proposals.
“As we delve into the details of how today’s executive order might affect the state’s revenue coming from the oil and gas industry, my intent is to proceed with caution on other budget-impacting measures while we carefully study the scenario before us,” he said in a prepared statement.
Gov. Michelle Lujan Grisham said state analysts are also reviewing the change and would work with both the federal government and oil and gas industry to develop a plan that “takes into account the individual circumstances and near-term financial reality of states like ours.”
Positive tests
A press release Thursday, Jan. 28, from the Speaker’s Office reported that a member of the Legislature’s staff has tested positive for COVID-19.
The Santa Fe New Mexican has reported that four staff members and one male member of the House have tested positive. The House member is reportedly asymptomatic.
New Mexico House Speaker Brian Egolf, D-Santa Fe, said they have “taken every measure to protect the safety and health of all members and staff.” He alleged that some Republican members have not complied with mask-wearing and social-distancing requirements. Instead, they joined together for a catered lunch in a small space without wearing masks, he said.
And so, Egolf has made the rules for the session even more restrictive.
“From this day forward, all committee rooms in the Capitol will be closed, all committee participation will be exclusively by Zoom, and members may not congregate in rooms to participate in committee meetings,” the message from Egolf stated. The statement also closed the floor of the House to all members except the majority and minority leaders and the speaker, or their designees.
Untapped funds
Sen. Jacob Candelaria, D-Albuquerque, is seeking to loosen restrictions on a plan to give low-interest loans to small businesses harmed by the pandemic. The loan plan has had few takers in its original version, which was passed during a special session in June.
That bill provided a pool of $400 million for the loans, but only about $40 million had been tapped into. Senate Bill 3 would allow more small businesses to qualify for the loans, increase the maximum amount of the loan and allow loans to be used for capital improvements.
Candelaria said the loans would be especially helpful for first-time business owners who don’t have established relationships with banks. The interest rate for the loans is set at one half of the Wall Street prime rate, and the first payment is not due for three years.
“You don’t find that rate anywhere,” Candelaria said.