February 3rd, 2012
By Matt Grubs, NMiF Producer
It’s a snowy Native American Day here at the Roundhouse. In the spirit of the day, here’s a glimpse of dancers from the Santa Clara Pueblo as they celebrated New Mexico’s century of statehood earlier this week. A few dozen more centuries and the state will be where the tribes, nations, and pueblos are today.
Tags: Native American Day, Santa Clara Pueblo
Posted in 2012 First Regular Session, roundhouse | No Comments »
January 31st, 2012
By Matt Grubs, NMiF Producer
Anyone with a stake in the Educational Retirement Board and the funds it runs has been paying close attention to a number of bills this session. At a Senate Finance Committee meeting last week, ERB Executive Director Jan Goodwin (a former Richardson Cabinet Secretary) advised legislators that the fund has what’s called “unfunded liability”. In layman’s terms, it means the pay-ins and payouts are unsustainable at their current level. The stunner is the level of unfunded liability: upwards of 5 billion dollars for a fund that measures 9 billion dollars.
It’s a problem that has to be solved. Employees who get retirement benefits from the fund now pay extra into it as a result of previous legislation hoping to shore up the ERB. But there’s much more to be done. The leading option is setting a floor for retirement benefits from the fund at age 55 and reducing the cost of living adjustment from 2% a year to 1.75%. That may or may not be enough, depending on other legislation, the economy and management of the fund. Skeptics say it’s another bandage on a fund that’s hemorrhaging money.
One of the other pieces of legislation is Senate Bill 51. The bill would allow those who have retired and are getting ERB benefits to be exempt from paying into the fund if they return to work. Those who started working for ERB employers early enough could conceivably retire around age 50 and then return to work while receiving benefits. The bill doesn’t stop the ERB payouts to those returning to work, it requires them to pay into the fund if they join the workforce again.
A brief explanation from UNM’s Susan McKinsey in a legislative update from this morning:
“Earlier in [Monday] morning’s hearing, Senate Education voted a “do not
pass” for SB 51, which would have allowed “return to work” education
employees to be exempt from the ERB contributions they now make in
their subsequent employment. Sen. Vernon Asbill, (R, Carlsbad)
summed up the majority sentiment that return to work employees are
taking positions that otherwise would go to someone paying into the
retirement fund. “They need to have skin in the game to help make
the fund whole.” This bill would have cost the ERB fund
approximately $6 million annually.”
RELATED ADD: Here’s Lucky Varela, talking about why the House budget leaves out raises for state employees and the removal of the additional 1.75% contribution to the ERB as required by state law.
Tags: Educational Retirement Board, ERB, Vernon Asbill
Posted in 2012 First Regular Session, roundhouse | No Comments »
January 30th, 2012
By Matt Grubs, NMiF Producer
This is the legislative season not just in New Mexico but across the country and National Public Radio is taking a closer look at state budgets. New Mexico fares rather well when pitted against the budget woes of states across the country and across the Southwest. Royalties paid to the state by companies extracting natural resources go into so-called permanent funds. These funds measure into the billions and typically provide hundreds of millions of dollars to New Mexico schools and a few other recipients.
Ted Robbins, Southwest Correspondent for NPR, made the rounds in Santa Fe today, gathering information for a report slated to air on NPR beginning this Wednesday. Robbins was gracious enough to sit down with us and talk about national interest in New Mexico’s budget and in its politics.
Posted in nmif | No Comments »