Commentary: Santa Fe, NM – Sen. Craig Brandt (R-Sandoval) has introduced a bill to restore $46 million to school district cash balances across the state. Senate Bill 332 would use funding earmarked for capital outlay projects and the state’s film tax credit to relieve the budget hit to New Mexico’s schools.
Brandt’s bill proposes to shift $26.1 million from capital outlay funds and delay $20 million in FY 2017 payments on the film tax credit to cover the $46 million that was swept from school district reserve accounts by Senate Bill 114. Payment of the suspended film tax credits would resume on July 1, 2017.
“When times are tough, the budget decisions we make reflect our priorities,” said Brandt. “Cutting public education funds should be an option of last resort. We should exhaust all other options before inflicting budget pain on our schools. We can afford to press the pause button on legislative pet pork projects and reimbursements to the film industry, especially if it will protect funding for our students and teachers.”
Brandt was one of two state senators who voted against Senate Bill 114. The bill, now law, included a $1.2 million sweep from Rio Rancho’s cash reserves.
Brandt stressed that his bill would only delay payment on some tax credits by up to a year, and companies entitled to a reimbursement would receive their payment in the order their claim was received by the state.
Senate Bill 332 has been referred to Senate Corporations and Transportation Committee and the Senate Finance Committee.