Pub. 15 2018 Issue 4

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 EXECUTIVE VICE PRESIDENT’S MESSAGE JOHN W. ANDERSON, EXECUTIVE VICE PRESIDENT New Mexico Bankers Association 2019 Legislature in Action A fter what seemed to be an eternity, the 2018 general elections have concluded. The Democrats were the big winners. Our new Gover- nor, Michelle Lujan-Grisham, a Democrat, took office on January 1 as did all oth - er state-wide officials, all Democrats, including the attorney general and secretary of state. The Democrats picked up several seats in the New Mexico House of Representatives and now hold a 46 (D) to 24 (R) majority. In the state Senate, the margin is 26 (D) and 16 (R). State Legislature This 60-day session of the legislature com- menced on Tuesday, January 15 and will end on Saturday, March 16. Governor Grisham has set an aggressive agen- da for her first session. Issues under consider - ation include: • Budget • Increase the state minimum wage • Utilization of the state’s Land Grant Per- manent Fund for early childhood educa- tion programs • Legalization of the sale of cannabis for adult recreational use • Elimination of the state’s annual $50 mil- lion cap on the film industry’s incentive spending program • Increase salaries for teachers and state employees • Implementation of new renewable energy standards • Increase spending on roads, airports and broadband internet • Increase state environmental standards including new rule on methane emissions • Education spending reform • Criminal justice reform, including en- hanced penalties for certain crimes • Tax reform including a review of justifica - tion for certain gross receipts tax deduc- tions and credits, and proposed increase taxes on alcohol, tobacco and gasoline • Mandate combined reporting for corpo- rate income taxation of a unitary group Budget Great news! The latest consensus revenue estimates indicated that there will be approx- imately $1.1 billion in new income to the state during the fiscal year that begins July 1, 2019. That is moving above the current level of state spending of $6.3 billion that was approved for this year’s current budget. How the legislature The FDIC will likely have concerns over public ownership, accountability, and the ability of the institution to obtain needed capital funds in the future.