New Mexico governor raises possibility of special session on budget, gambling

SANTA FE - With the Legislature's 30-day session almost over, Gov. Gary Johnson says there's a chance he'll invite lawmakers back to work.

Johnson raised the prospect Tuesday of calling a special legislative session for lawmakers to deal with a budget to finance state government and compacts for Indian-operated casinos.

Johnson voiced doubts that lawmakers would hammer out a budget agreement that he could accept before the 30-day session ends on Thursday. The governor said he would veto a $3.4 billion budget package pending in the Senate.

Rep. Max Coll, D-Santa Fe, chairman of the Appropriations and Finance Committee, said House and Senate leaders were negotiating possible revisions to the latest budget proposal and trying to keep the Johnson administration "in the loop."

"Three corners of the triangle have to touch before we get to the point," Coll said.

House GOP Leader Ted Hobbs of Albuquerque said, "I am not going to forecast that we'll get a budget, but I am going to forecast there will be some serious negotiations."

Failure to work out a deal on the budget will guarantee that Johnson calls lawmakers back to work in a special session at some point before the new fiscal year starts in July.

If that happens, the governor said, he probably would add Indian gambling to the special session agenda if lawmakers don't approve new gambling compacts before adjourning Thursday.

However, Johnson said he's not threatening to veto the budget as a ploy to secure legislative approval of revised gambling compacts to lower the amount of casinos proceeds tribes must pay the state.

"Indian gambling would not be the reason for a special session. The reason for a special session would be the budget," Johnson said.

"If there is a special session because of the budget, it is logical that you would tie Indian gambling to it because it is a big dollar amount that ties to the money that is getting spent," he said.

The state expects to receive $15 million from Indian casinos during the budget year that starts July 1. That's part of the $3.4 billion in general revenues that the Legislature's budget proposes to spend next year to finance public schools and government operations ranging from prisons to health care for the poor.

Johnson maintains that the Legislature, if it's not intending to approve new gambling compacts this session, shouldn't spend the $15 million from casino payments. It's expected all tribes will stop making the payments if new compacts aren't approved.

Tribes contend the current payment requirements - 16 percent of slot machine proceeds - are illegally high under the federal law allowing tribes to operate casinos.

Johnson contends that spending the $15 million in anticipated gambling revenues - without new compacts - sets up an almost certain budget shortfall next year. The governor already objects that the latest budget package draws down the state's cash reserves to cover proposed spending increases.

If tribes stopped making gambling payments, the state's reserves would drop even lower to cover the revenue shortfall.

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