NM GOVERNOR LOOKING TO LEAVE HIS MARK

Education, Health Care, Taxes Top Republican's Agenda For Next Session

SANTA FE, N.M. -- Time and money are running out for Gov. Gary Johnson.

The Republican governor's term expires at the end of the year, and the
upcoming 30-day session of the Legislature offers him a chance to leave a
lasting imprint on state policies and programs.

The governor's wish list hasn't changed.

He will renew proposals that have failed before in the Democratic-led
Legislature: school vouchers, legalizing the medical use of marijuana,
decriminalizing the possession of small amounts of marijuana, and
eliminating mandatory minimum sentences for some drug-related crimes.

"What I hope the legacy ends up being is, 'You know what, I wasn't afraid
to address the issues. I wasn't afraid to do the things that needed to be
done,' " Mr. Johnson said recently.

However, a weakening of New Mexico's economy is likely to prevent him from
accomplishing one of the things he had hoped for during his eight-year
tenure: a permanent, across-the-board reduction in personal income taxes.

"It's probably killed my chances to get an income-tax reduction," Mr.
Johnson said.

Lawmakers and the governor will confront a bleak financial situation when
the Legislature convenes Jan. 15.

There's little "new money" available for budget increases or tax cuts.
Revenues next year are projected to exceed spending by only $8 million.

During 30-day sessions, the Legislature's agenda is limited by the state
Constitution to budget and tax matters and issues designated by the governor.

"Education will still be on the front burner and so will health care," said
House Speaker Ben Lujan, D-Santa Fe.

A priority for education groups is finding money in the $3.9 billion budget
for pay raises for teachers: nearly $14 million for each 1 percent increase.

Mr. Johnson wants to revamp the governing structure for education and
create a Cabinet-level secretary of education. The Albuquerque Chamber of
Commerce also will promote a package of education initiatives, including a
proposal to reduce the size of the state Board of Education and, like Mr.
Johnson, have the governor appoint a secretary of education.

Senate GOP Leader Stuart Ingle of Portales said the scramble for money will
be fierce. One option for saving money, he said, is to slow the
implementation of full-day kindergarten across the state.

"At one time $4 million or $5 million wasn't too much when we talk about
money up here sometimes," said Ingle. "I think this year anything in the
millions of dollars is going to be some money."

Medicaid is at the center of a looming health care debate. The program pays
for medical services for the poor, disabled, and more than 200,000
uninsured children.

The governor wants the Legislature to slow the growth in Medicaid spending
by restricting benefits and eligibility. It's a proposal that faces trouble
in the Legislature.

Mr. Johnson and legislative leaders predict a flat budget for state
government next year, but that could change if the economy worsens and
revenue projections drop.

Faced with a downturn in revenues in 1996, the Legislature and Mr. Johnson
trimmed an average of 2.5 percent from most agency budgets.

Despite lower-than-expected revenues, the state remains financially healthy
because of large cash reserves. Those have swelled partly because of Mr.
Johnson's vetoes of spending and tax proposals passed by the Legislature.

Revenues stood at nearly $390 million at the start of the budget year --
equal to about 10 percent of spending. Some in the Legislature want to dip
into those balances to help pay for spending increases next year. That
could become one of the main budget disputes between Mr. Johnson and Democrats.

Mr. Johnson has vowed to veto proposals that lower the reserves below 8
percent to 9 percent of spending.

"I'll bet I go down blazing," he predicted about vetoes in his final year
in office.

Senate President Richard Romero, D-Albuquerque, said the threat of vetoes
will keep Mr. Johnson's power from diminishing during the upcoming
legislative session.

"He is still the governor, and he can still veto. I don't pay much
attention to the lame-duck situation," Mr. Romero said.