I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
Not only is New Mexico’s unemployment fund one of the most solvent in the nation, its economy is getting a boost from unemployment payments.
For every $1 in unemployment benefits paid, the local economy benefits by $1.73, according to a report in the New Mexico Business Weekly. Terri Cole, president of the Greater Albuquerque Chamber of Commerce, acknowledged the “strange, positive impact” of unemployment insurance payments. Rep. Mimi Stewart, D-Albuquerque, explained that it’s an easy way to stimulate the economy because “when you give unemployed people money, they spend every bit of it.”
The state’s unemployment trust fund had nearly $492 million at the end of January, and the state may receive another $39 million in federal stimulus money for unemployment. Apparently, New Mexico qualifies for all the available funds because of recent reforms at the state Legislature that expanded benefits.
Stewart wants to expand them further by increasing the pay-out to unemployed workers from 53.3 percent to 60 percent of their former average weekly wage. The expansion would only last for two years, and would cost the state $26.3 million. But, given the positive effect of unemployment benefits, the broader economic impact would be $45.4 million.
The Greater Albuquerque Chamber of Commerce is opposed to Stewart’s bill, HB 20, because of fear that it would lead to higher taxes on businesses. Another concern is that the fund might be depleted.
But Stewart said HB 20 wouldn’t lead to higher taxes. Instead, she said, some companies might see higher taxes because they’re laying off workers, and therefore their “experience rating” is going up. And Gerry Bradley, research director for New Mexico Voices for Children, said there’s enough in the fund now for at least another year and seven months, not counting additional tax revenues. There were $81 million in tax revenues last year and interest payments into the fund of about $25 million, he told the biz weekly.
HB 20 passed the House unanimously and is now scheduled to be heard in the Senate Corporations Committee.
