Pub. 13 2016 Issue 4

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 8 EXECUTIVE VICE PRESIDENT’S MESSAGE JOHN W. ANDERSON, EXECUTIVE VICE PRESIDENT New Mexico Bankers Association It is fair to say that New Mexico’s economy is not robust. In fact, the New Mexico state government must come up with at least $700 million in the very near future. Spending in the fiscal year 2017, which began July 1, 2016, is expected to exceed revenue by $450 million. A fter what seemed to be an eternity, the 2016 elections have concluded. At the state level, Democrat s have rega ined cont rol of the House with a 38-32 majority and will hold a majority in the Senate with a 26-16 advantage. As we all know, at the national level, Republicans will now control the House, Senate, and Executive. The question facing all state and national political leaders is what to do and when? Lyndon Johnson once observed that, “Government tends not to solve problems, only rearrange them.” I am curious to see if Congress will repeal or significantly revise Dodd-Frank and ACA. It is equally important at a state level to see how the legislature and the executive handle a significant budget shortfall for this fiscal year and next. One thing that is for sure is that all parties must come to the table to devise a long-term budget strategy for the state. State Legislation The 60-day session of the Legislature commenced on Tuesday, January 17. Some of the key issues to be considered by the 2017 Legislature include: • Budget deficit • Minimum wage • Usury caps • Utilization of the Permanent Fund for early childhood education • Cannabis and hemp legalization • Combined reporting for corporate income taxation • Trust and wealth management reform • Data Breach Notification Act • Tax reform including increases in alcohol, tobacco, and gasoline taxes • Criminal justice initiatives • Education Reform