Number of Business Tax Credits Grows 9-Fold

The number of New Mexico business incentive tax credits has grown from three to 27 since 1990, the Taxation and Revenue Department reports. The department estimates business tax credits represented $122.7 million in foregone revenue in FY09. The figure is expected to fall to $94.3 million in FY10 because of the slower economy. The report says few of the credits have sunset dates, caps to limit the state’s exposure, or provisions that allow the state to reclaim the credit if the business fails to meet projected targets for employment or investment. More than half of the taxpayers benefiting from the credits in FY09 – 1,300 of 2,000 – claimed the Rural Health Care Practitioners credit.

Schools Get More than Expected

Almost $12 million from FY10 will revert to the general fund because the public schools are getting more than expected in federal impact aid for federal lands, forest reserve and a 0.5 mill property tax. Those sources generated $76.1 million, $11.7 million more than the expected $64.4 million.

Stimulus Funds Help Spread Broadband

Penasco Valley Telecom of Artesia has received $9.5 million in American Recovery and Reinvestment Act grants and loans from the U.S. Department of Agriculture to expand rural broadband services.

Energy System Fails To Save

A biomass system at the Jemez Mountain Schools has failed to generate the $56,000 a year in savings promised in the 2004 purchase contract. The $1.8 million system, sold and installed by Albuquerque-based Energy Control, Inc., has failed repeatedly since installation. The system was funded with district money and $450,000 in grants from the Energy, Minerals and Natural Resources Department and the U.S. Forest Service.

New Mexico Unemployed Losing Benefits

About 1,800 New Mexicans have stopped receiving unemployment insurance payments because Congress failed to extend benefits, the Workforce Solutions Department reports. Another 4,400 are expected to lose benefits in the next three months.

DPS Gets Stimulus Funds

The governor has allocated $1 million of federal stimulus money from the government services fund to the Department of Public Safety to buy 11 new police cars and pay for fuel for the State Police fleet. The stimulus funds will push the department’s car budget over the agency’s FY11 request.

Transitions

Robert Mayer has replaced Tom McQuillan as deputy secretary of the Department of Information Technology. Mayer was the Department of Health chief information officer.

Jeri Poletto, Organic Commodities Commission director, has resigned.

Jennifer Taylor, senior vice president for business, finance and human resources at New Mexico State University, will retire in October after 27 years at NMSU.

Nick Franklin, New Mexico State University vice president for advancement and president of the NMSU Foundation, will leave this year after a replacement is selected.

Cynthia Borrego, municipal representative and Public Employee Retirement Association Board chair, announced her resignation from the board due to retirement.