A number of constitutional amendments are the order of the day for this edition of Other Voices. We start with reader Bob Carroll who responds to criticism of two amendments approved by voters last November providing more tax breaks for veterans:

Joe, I read with dismay your December 4 article on the recently passed constitutional amendments on tax breaks for veterans. As you noted, the amendments were approved by a substantial majority of the voters, 83% for HJR 5 and 73% for HJR 6. The amendments recognize the sacrifice that the veterans have made for the good of our nation. It is also important to note that neighboring states have even more generous provisions for veterans (Texas, for example). The Department of Defense, in making its determinations on which bases will receive more missions, and which bases will remain open, places a heavy weight on which states have military friendly laws for service members, veterans and their families. 

The first Constitutional amendment (HJR 5) ties a property tax reduction for veterans based on the percentage of their service-related disability. The previous provision only granted an exemption for veterans with a 100% service related disability. If you had a 60% or 40% disability, you were out of luck. Under this bill, if you have a 40% disability then you will get a 40% reduction on your property taxes. 

About a quarter of New Mexico veterans have some level of service-connected disabilities. The average reduction in the tax bill for these veterans will be about $767 and will cost taxpayers about $14 a year (see legislative FIR, or Fiscal Impact Report). Other states have similar deductions for partially disabled veterans (Texas, for example). The FIR assumes that every veteran takes advantage of this amendment, which never happens, and the impact is likely to be far lower. 

The cost of the second amendment that reduces the bills that veterans receive for property taxes is minimal. The amendment provides that the exemption, which was pegged at $4,000 in 2006 to be deducted from the taxable value of the property, will be raised to $10,000 and will be tied to the rate of inflation in prospective years. 

Keep in mind that we are talking about a $10,000 deduction on the value of the property, not on the tax bill. New Mexico has 142,000 veterans, and about half claim the property deduction. A $10,000 reduction in the valuation of a $300,000 house in Albuquerque (to $290,000) doesn’t mean much financially to the homeowner. It means a lot more to a veteran living in a $40,000 trailer. The average reduction in actual taxes paid by veterans will be about $180. This is an annual burden on the general population of $34, which again assumes that every veteran will apply for the exemption.

I won’t argue that our tax system is perfect or that a different approach might benefit more people. I do maintain that recognizing our veterans and enacting provisions that are in line with other states is important in keeping our veterans here in New Mexico. 

EARLY CHILDHOOD AMENDMENT

Allen Sánchez

Allen Sánchez, president of CHI St. Joseph's Children in Albuquerque as well as executive director of the New Mexico Conference of Catholic Bishops and now a member of the New Mexico State Investment Council, advocated for a decade for a constitutional amendment that allows funds to flow from the state's large Land Grant Permanent Fund into early childhood services and education. Finally, in July 2023, that amendment took effect. In this excerpt from a comprehensive column he wrote about the struggle for the amendment, Sánchez explains what its approval means today:

After 10 years of battling with the state legislature, the constitutional amendment, known as the House Joint Resolution 1 Early Childhood Constitutional Amendment, was placed on the November 2022 ballot and was approved by the voters with a mandate vote of 70.33% in favor. The ballot initiative authorized an additional withdrawal of 1.25% of the Land Grant Permanent Fund,

On July 1, 2023, the funds began to flow. Today, the budget for delivering early childhood services is nearly $800 million in a state with a population of approximately 2 million people.

By being the first state in the union to make early childhood services a constitutional right, the health of New Mexico's population will be forever changed. The immediate impact on children's health is evident: The first-of-its-kind universal child care in the nation places children in a safe environment, lifts their parents up by creating the ability to seek employment and raises the family out of poverty. In many cases, that employment brings health insurance coverage to the family. 

Universal Pre-K ensures that children reach kindergarten ready to learn, and home visiting connects parents to safety net service organizations, reassuring them that babies do come with instructions. Home visitors. . .connect families and babies to a medical home and teach parents resilience and how to advocate for their child. They also bring access and connection to housing assistance, vaccinations and the Supplemental Nutrition Assistance Program. Furthermore, they build relationships in which parents feel safe to self-disclose their need for referral and follow through to address issues such as postpartum depression or alcohol or substance abuse. In fact, the state can attest to a decrease in visits to the emergency room in the first year of a child's life.  

New Mexico is blessed to have a revenue stream from royalties on gas and oil, but all states can discern how they, too, can make this constitutional right for their youngest children and invest it in the fundamental foundation for their lifelong health. Prioritizing health is a battle worth fighting.

This is the Home of New Mexico Politics.