As New Mexico legislators wrap up their first full week of the 2017 session, our state government's solvency was their top priority.

To address the $69 million budget shortfall, legislators introduced many bills to cut programs and sweep accounts for whatever funds still available. Declining revenues from the federal government and the oil and gas industry combined with a sluggish local economy contributed to New Mexico’s budget woes.

A package introduced by the State Senate cuts over a third of the funding for the Local Economic Development Act (LEDA) leaving only $22 million to attract new businesses to the state. LEDA is an investment in our future. While $22 million isn’t chicken scratch, it’s a far cry from the $50 million plus available in previous years.

Funding for the Job Training Incentive Program (JTIP) is also on the chopping block. The current bill's $2 million in jobs training funding is meager compared to the $15 million plus available in previous years.

Impact of proposed cuts

The funds for local economic development and jobs training are extremely important components of our state's overall economic development incentives program.

The two programs help companies create needed jobs and bring investment to our state. Local Economic Development Act funding returns $17 on every $1 spent and was expected to add $60 million in new payroll. When fully funded, the state's jobs training program can provide 2,200 New Mexicans with the training they need to land good paying jobs.

Other bills to watch:

• HB67 Increase Minimum Wage – Negatively impacts small business profits and hiring practices.
• SB14 Defective Construction Projects Actions – Revises statute of limitations for defective and unsafe conditions in construction projects in part to address Kitec related issues.
• HB199/SB 59 Distributed Generation Consumer Protection – Defines and expands rooftop solar disclosure requirements.
• HB82 Extend Solar Market Tax Credit – Revises statute to incrementally reduce solar tax credit.

Go to www.nmlegis.gov to track these and all other legislation for the 2017 session