Supreme Court Mum on Unemployment Fund Clash

New Mexico Supreme Court Building

LC Sun-News - SANTA FE - Republican Gov. Susana Martinez surprised New Mexico state lawmakers Tuesday with her idea to fix to the state's unemployment fund: Withdraw $130 million from the state's savings account and put it into the unemployment fund. It immediately got a cool reception from several prominent Democratic lawmakers. "It bothers us that you're dipping into those reserves," said Sen. John Arthur Smith, D-Deming, and the chairman of the Senate Finance Committee. "There's too many questions out there." Martinez's proposal is the latest salvo in a six-month battle between the governor and the Legislature over how to prop up the state's unemployment benefits fund, which is projected to go insolvent in 2013 without an injection of cash. Using her line-item authority, Martinez killed a provision in a bill that cleared the Legislature earlier this year that would have increased what businesses pay into the fund. Several state lawmakers sued Martinez, saying her action was unconstitutional. But the state Supreme Court declined to rule on the issue, saying the governor and the Legislature could still strike a deal on how to prop up the fund during the current special session. Read full story here: News New Mexico

Supreme Court Mum on Unemployment Fund Clash