This week state legislators will return to the capital for a special (closed door) legislative session to address pressing issues facing the New Mexico, namely the massive $2 billion hole in the state budget. Legislators have also said they are hoping to address additional issues like legislation to clear the way for mail in voting, and police reform proposals. The Governor has said however that she is going to try to “not load up the special session” with legislation that could be handled in the 2021 session.
As for business relief and assistance, the single most important thing that the state government can do for employers during the special session is address the Unemployment Insurance (UI)Tax. This was an issue that NMBC initially brought to the Governor’s attention in March. NMBC has been working with legislators on the UI bill and providing input on UI legislation to accomplish two things:
1) Replenishment of the UI fund. This will be addressed as part of the budget and is a request of $350 million in order to keep the fund solvent.
2) Legislation to address the UI formula in order to ‘hold employers harmless’ for the layoffs due to COVID-19. Without this fix, employers’ UI Tax rates would spike enormously due to the number of UI claims made by employees.
A host of other issues could also be added to the special session. NMBC would like to see the legislature address the immediate needs of the state budget along with UI Tax relief for NM businesses. Read more HERE.