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BUFFETT'S BULLET 46
FEBRUARY 18, 1994

In Bullet 45, there wasn't enough space to point out some other facts. Please look at the two house roll calls that were enclosed. (These were inserted at the last minute.) See how all the Democrats but two voted to kill the 6 cent gasoline tax repeal and how all Democrats but two voted for Little Davis-Bacon Law to keep paying exorbitant union wages for school construction. (This keeps the unions happy.)

Also look at who made the motion to kill these amendments, Representative Ben Lujan, Democrat Whip. He is Chairman of the Capital Outlay Committee so when he speaks the Democrats listen and march in lock step in the direction he says (to the left). Please keep copies of this roll call vote and ask your Democrat Representative why they voted against your schools and for higher taxes. (It was to help the unions both in and out of government.)

The Democrats want to look good for state employees even to the detriment of the rest of the state. A good example is the employees' retirement plans for our state. All increases and changes to the retirement plan have been passed with a majority of Democrat votes.

Over the years, New Mexico State Government retirement has become one of the best deals in the country. (It's in the top three.) We are one of the poorest states per capita with one of the best state government retirement plans!

Right now the state retirement plan, according to testimony in the Appropriations Committee, has unfunded liability (debt) of $875 Million. This proves that the Democrats in New Mexico are no different from the Democrat spenders in Washington, D. C. They'll mortgage our children and grandchildren's future to get Democrats more votes.

In addition to being unfunded the plan is very expensive for everyone. The state is now contributing 13.83% of the employees' salary into the plan plus 7.65% in social security which is 21.48%. The employee pays an additional 6.18% plus 7.65% social security which totals 13.83%. To recap, 13.83% paid by a state employee plus 21.48% paid by the state taxpayers equal 35.31% of salary going into their retirement. This is one of the reasons they get so little take home pay......we just passed House Bill 524 which takes from the state another 2.76%. The employees' deduction is 1.24%, which will cost the state next year alone $15 Million (more tax increase after the next election)!

This change in the retirement plan this year (House Bill 524 sponsored by Santa Fe legislators) will give the employee 70% retirement in 25 years (up from 62%). The New Mexico plan does not require an employee to be a certain age such as 55 or 62. If a person starts at age 20 they can retire at 45. Because of this, we lose a lot of job experience, which in turn hurts the state. Employees quit because they can go get another job and start to acquire another retirement. So when they retire, they can have two retirements plus social security. Retirees may receive more money than when they were working, all paid for from the "future."

The Democrat politicians always raise the retirement plans. They don't need efficiency to do that. They just mortgage New Mexico's future.

They have been doing this the last two years big time! Last year they passed a 20-year retirement plan. (It was so bad that Governor King had to veto it.) There was talk of trying to override his veto. Next year if they win a big majority of seats during this election year, the Democrats will again try for 20-year retirement.

I think many of our state employees should be paid more now. But should not be at the expense to the taxpayer. We have some of the highest income tax rates and the highest Gross Receipts taxes in the country... enough is enough.

We must have efficiency in Government and we must eliminate programs where we are not getting our money's worth. In other words, we need better management. But with the Democrats in power, we won't get this because they are interested in more jobs for votes. For example, a year and a half ago, Governor King appointed a task force committee to cut back government. It was headed by ex-Senator Aubrey Dunn, a former Democrat Chairman of the Senate Finance Committee. Dunn was the most powerful chairman the Senate Finance Committee ever had.

Dunn said at the time there were many places to cut back. The committee met for 6 months and nothing came of it. There were no cuts, but taxes were raised $92 Million and the legislature gave us the gas tax.

The legislature just passed House Bill 2, which is the main spending bill for the state. I'll tell you a few things that the other reporters missed.

First, after the House Appropriation Committee heard about the needs of the state for three weeks during hearings, the Senate Finance Committee had the bill for four days and added $40 Million in 250 amendments. The House had only 2 hours to check all these 250 amendments. It was impossible!

Of this $40 million, $20 Million was added to the Department of Health, this gave them $20.5 Million more than the governor had requested. This gives them $31 Million more than last year, or an increase of 21%.

For Human Services Department (State Agency of Aging) $1,377,500 was added, this gave HSD $3 Million more than the Governor requested. This gives them $2.8 Million more than last year with an increase of 24%.

In Children, Youth and Families $4,590,500 was added, which is $2 Million more than the governor requested. This gave CYF $8.5 Million over last year and a percentage increase of 11%. All of these increases will increase the demand for more tax money next year. Some of my knowledgeable friends in Santa Fe do not think that these increases can be spent intelligently so we will have a lot of waste.

The unions flexed their muscles in House Bill 2 by having the Democrats add language that mandates all non-teaching school employees, such as janitors, kitchen help, etc., must be paid at least $6.00 per hour. That might not affect the Albuquerque Public Schools, but how much money will it cost the taxpayers for school employees in Santa Rosa, Eunice, Aztec, Lordsburg, Reserve and other small school districts?

I even tried putting something into House Bill 2. In the Appropriation Committee, I added a paragraph which said, "Any agency of State government that was over 60 days late in paying a legitimate bill would have that amount revert to the general fund." This language would have made the agencies attempt to pay their bills on time. It passed the House Appropriations Committee with everyone voting for it. Somewhere in the Senate, the amendment was taken out. The bureaucrats somehow had it removed. This would have helped a lot of small businesses around the state.

It's business as usual in the New Mexico legislature. Santa Fe will not change until we elect more Republicans!

Sincerely,

George Buffett

P.S. The Senate Democrats passed a bill that killed the increase in liquor taxes scheduled to begin this year. They kept the gas tax but killed the liquor tax...... so go their priorities.

This session of the legislature is now over and by law I can now ask for help... HELP Buffett's Bullets bank account is over drawn. That's why I didn't send out a letter last week. See floor vote on House Bill 524!

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