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New Mexico Legislature Provides COVID Relief, Mostly From Federal Funds

LAS CRUCES - The New Mexico Legislature provided an additional $330 million in assistance for state business and unemployed workers during a one-day special session Tuesday, Nov. 24, but the debate was about the people not being helped: essential workers.
More than half the money appropriated will go to jobless New Mexicans who have exhausted their unemployment benefits. Workforce Solutions Secretary Bill McCamley said those people have already been identified, and his department will be able to get checks to them immediately.

Sen. Gabriel Ramos, D-Silver City, joined with Sen. Candace Gould, R-Albuquerque, on an amendment that would have taken half the money and used it to benefit essential workers making $15 an hour or less. Both senators lost their elections and were taking part in their final session. But the idea had strong support.“Essential workers were not given the option to stay home,” said Sen. Daniel Ivey-Soto, D-Albuquerque. “They were told they had to report to work at a time when we didn’t have enough [personal protective equipment], places didn’t have plexiglass [and] we weren’t sure how to manage it if somebody got the infection.

“It’s been because these people have gone to work that I’ve been able to feed my daughter every night. I’ve been able to limit my exposure. I’ve been able to limit my daughter’s exposure, because these people are exposed every day.”

Sen. Clint Pirtle, R-Roswell, said it “rubs people the wrong way” when a person can make more on unemployment than if they were working.

McCamley didn’t disagree. But he told lawmakers, more than once because of the skepticism of some, that it would be impossible to get a new program started and checks delivered by the end of the year. And, because this is money from the federal CARES Act, anything not spent by the end of the year will automatically revert to the state’s unemployment fund.

“The concept is excellent and is something I morally support. But it just, from a logistical perspective, it can’t be done,” he said.

McCamley said it took four weeks and $1 million to set up the original pandemic assistance program. This amendment didn’t include any funding to set up a new program.

Sen. Joseph Cervantes, D-Las Cruces, said there also needed to be a firm definition as to who qualified as an essential worker.

Amendment proponents were reluctant to give up, noting there is no assurance of additional federal support in the coming months. But the amendment fell on a 28-14 vote.

That was the second of two amendments targeting the same pool of money. Sen. Pat Woods, R-Broadview, proposed putting the money into the unemployment fund.

McCamley said the fund is at “negative $156 million,” meaning the state has borrowed that much from the federal government to meet its obligations, and it’s been climbing by about $10 million a week for the last couple of weeks.

“We’re burning through $40 million a month, and we’re going to appropriate $190 million in one-time money. Why not put more money into the fund and not have to borrow as much from the federal government?” asked Sen. George Munoz, D-Gallup.

But McCamley said people were in desperate shape and needed help right now.

Grants, not loans

The bill also included $100 million for grants of up to $50,000 for New Mexico small businesses. This comes after a special session in June during which legislators appropriated $400 million for small-business loans.

The loans were a tough sell for businesses reluctant to take on additional debt, said Debbi Moore of the Greater Las Cruces Chamber of Commerce. Only about $30 million of the $400 million available has been tapped into thus far.

The grants, which do not have to be paid back, present just the opposite problem. The $100 million appropriation is enough to provide $50,000 for 200 businesses. It will be up to the state Department of Finance and Administration to determine which businesses get the checks.

“I’m very concerned the money is just going to go ‘poof.’ It’s going to be gone in a couple of minutes,” said Sen. Michael Padilla, D-Albuquerque.

Debbie Romero, acting director of the Department of Finance and Administration, said the money would go out in phases so that more businesses would have an opportunity to apply.

Senators Cervantes and Munoz both questioned a provision in the bill that gives a preference to businesses in the tourism and hospitality industry. That’s a violation of the equal protection clause of the Constitution,

Cervantes said. And he said the state should not be picking winners and losers.

“Let’s be clear, this program is a giveaway. This is money we’re giving you with no strings attached,” Cervantes said, noting the only qualification is that a business has fewer than 100 employees.

“This $100 million is only going to go to a few,” he said. “What we want in business is fairness. How will I feel as a businessperson when my competitor gets $50,000 and I don’t?”
Sen. Bill Sharer, R-Farmington, asked if Allen Theaters would qualify.

“They were born in Farmington and survived the Spanish flu, two world wars and a terrible fire,” Sharer said. “They had 400 employees when this started, and now they’re down to a few dozen. Would this apply to them?”

It would not, Romero said, because the qualification is based on employees prior to the pandemic.

The state’s anti-donation clause prohibits such giveaways with state money, but attorneys have determined they are allowed with federal money, such as funds from the CARES Act.

Changes to make the loan program to make it accessible to more businesses and easier to apply for are expected during the regular session that starts January.

Griggs Amendment

The only amendment passed was offered by Sen. Ron Griggs, R-Alamogordo. It will allow fraternal organizations such as Elks Clubs and Moose Lodges to qualify for benefits to nonprofits.

Lawmakers were reluctant to offer other amendments because of the timing of the special session, coming two days before Thanksgiving. 

“It will be Thanksgiving for the executive branch, as we try to get out of here as quickly as we can,” said Sen. John Arthur Smith, D-Deming, longtime chairman of the Senate Finance Committee, at the start of the session.

Republicans introduced other legislation to change Gov. Michelle Lujan Grisham’s emergency powers and review her public health orders, but those statement bills never got a hearing.

Rep. Rebecca Dow, R-Truth of Consequences, said she voted for the bill because she knows people need help. But she didn’t appreciate having to make a decision with so little time for consideration.

“I could vote no, given the pretty bad score on governance. But I couldn’t treat the people of New Mexico the way I feel like I was treated in this chamber,” she said.

Cervantes said lawmakers were at fault for not defending their constitutional right and authority regarding spending.

“All the years I’ve been here, we bemoan and decry the fact that the executive (branch) is spending money, and then we rush home to make it in time for Thanksgiving. We give in,” he said. “It’s about time we recognize we have to do our job as legislators. This (bill) is what the governor wishes. This is not with input from this body. We can’t fault the governor for taking that authority when we give it to [her]. “

Walt Rubel can be reached at waltrubel@gmail.com.