Legislature Off to a Fast Start
Albuquerque Economic Development is closely monitoring action in Santa Fe that affects tools and programs designed to support employer recruitment, business growth and job creation.
The State Senate ended its first week with quick action on a solvency package to address a $69 million budget shortfall for the current fiscal year, FY 2017, which ends June 30. The Senate package cuts $11.6 million from the Local Economic Development Act (LEDA).
Although several members of the House of Representatives expressed concern about the LEDA cuts, with some voicing strong objections, the Senate solvency package is expected to be approved in the House as soon as today, followed quickly by passage of a House bill that contains similar LEDA cuts.
If enacted, the cuts will leave approximately $22 million in the LEDA fund for new projects, which is far below the level necessary to attract diverse businesses that will help grow our economy.
We are also closely watching funding proposals for the Job Training Incentive Program. Only one bill to fund JTIP has been introduced so far, and the $2 million that it proposes will not be enough to adequately cover the already-planned job expansions by New Mexico employers in FY 2017 or help support job growth in FY 2018. We anticipate that other bills will be introduced later in the session to supplement JTIP funding.
LEDA and JTIP are critical tools that affect our state’s ability to recruit new employers and help existing employers expand. We must ensure that both programs are adequately funded to meet the current and future needs of New Mexico employers in order to generate jobs for our neighbors. The state’s budget crisis is real, and the way to improve our economy is by investing in our state’s workers and the companies that hire and train them. That is exactly what LEDA and JTIP are designed to do.
What’s Next?
With the Legislature off to such a fast start in shoring up the FY 2017 budget, our focus will be on protecting LEDA and JTIP funds in the FY 2018 budget. Legislators will need to hear from you about the importance of adequately funding these programs.
If your company has received LEDA or JTIP funding in the past and you are willing to write letters to the editor, talk to lawmakers or speak to the media, please let us know. We also are looking for people who can travel to Santa Fe for key committee hearings. Legislators want to hear real-life stories about how these programs are generating jobs and improving lives. Contact Ceela McElveny, AED Vice President of Operations, at 505-246-6213 or ceela@abq.org, if you are able to help.
Second, all AED members are encouraged to contact legislators and ask them to protect LEDA funding, both in the solvency package for FY 2017 as well as in the budget for FY 2018. Here are some points you can make about LEDA and JTIP:
About the Local Economic Development Act
LEDA is a solution.
- We need to diversify our state’s economy and make it less dependent on the oil and gas industry. LEDA helps accomplish those goals by encouraging employers such as Facebook and Safelite Autoglass to locate here, and employers such as Ideum and Skorpios Technologies to expand in the state.
LEDA is an investment.
- The companies that received $15.2 million in LEDA funding in FY 2016 will make $270.1 million in private investment in the state. That’s more than $17 in private investment for every $1 in LEDA funding.
- In addition, those companies will create 2,460 jobs for New Mexicans. That’s more than $60 million in new payroll.
LEDA funds benefit communities throughout the state.
- Employers in 15 New Mexico cities received LEDA appropriations in FY 2016, from Santa Fe to Las Cruces and from Pena Blanca to Jal. Southwest Cheese will generate 380 jobs in Clovis and Ready Roast will create 200 jobs in Portales thanks to LEDA funding.
LEDA makes a difference to company decision makers.
- LEDA was a principal factor that influenced Keter Plastic to select Belen for its new manufacturing facility over competing locations in Arizona and Nevada.
- LEDA also was instrumental in attracting PCM and Safelite to Rio Rancho, Rural Sourcing Inc. to Albuquerque, and Facebook to Los Lunas.
- The Albuquerque metro area is a finalist for several large job creation projects for which LEDA will be necessary to win. The LEDA proposals already made to those employers were, in fact, key to Albuquerque making the cut as a finalist for these projects, which are nearing a final location decision in the next few months.
LEDA must be adequately funded.
- AED recommends that the Legislature maintain the LEDA fund at the highest level possible so that New Mexico is able to compete for open projects from expanding companies currently considering the state, as well as for future opportunities. We believe that the State should perennially dedicate no less than $50 million to LEDA in order to position New Mexico to compete against other states trying to win these important job creation projects.
About the Job Training Incentive Program
JTIP creates jobs for New Mexicans.
- The availability of JTIP funding encourages qualified employers to expand their workforces. JTIP helped 60 employers hire and train 2,238 New Mexicans in 2016.
JTIP benefits workers.
- Training that is funded by JTIP makes New Mexicans more valuable employees, thereby increasing their earning potential. Workers benefit from JTIP training now and in the future, as they retain newly gained skills and training for life.
JTIP is in demand.
- The JTIP fund has run out of money each of the past three fiscal years, meaning that employers may not be able to follow through with plans to expand their staffing.
- AED recommends that the Legislature provide JTIP funding of at least $12 million per year to meet the needs of employers expanding or entering into the state.
Take Action
Stand up for job creation and a diverse economy by calling your state senator and representative as soon as possible. Find your legislators’ phone numbers here.
Urge lawmakers to adequately fund LEDA and JTIP to help diversify our economy, create jobs for our neighbors, and revitalize our communities.To learn more about the importance of LEDA and JTIP to New Mexico’s economy, visit the Advocacy Page on AED’s website.
