As expected, on March 6th Governor Johnson vetoed the final state budget bill that had been passed by the legislature before it adjourned on February 14th. The budget dispute between the legislature and the governor has been over how much to cut the Medicaid program. The governor wanted a cut of $200 million, including $50 million in state funds, from the funding level needed to continue today's Medicaid program in the coming year.

The legislature was willing to cut as much as $80 million ($20 million in state money), but refused to agree to deeper cuts. Instead, the legislature voted to create a special committee to study the Medicaid program and develop recommendations for the 2003 legislature to consider. (See related article on Medicaid)

In a related move, the governor also vetoed the extension of the Child Health Act. That Act has provided Medicaid coverage to children in families earning up to 235% of the Federal Poverty Level, a program in which the federal government picks up more than 80% of the costs. Administration officials have indicated that they plan to continue the program, but at a lower income eligibility level.

A bipartisan committee of legislators has been meeting behind closed doors to develop a new budget plan that might be acceptable to the governor and the legislature. If an agreement is reached on such a plan, a special session of the legislature may be held as early as mid-May to adopt a new budget. It has been reported that such an agreement is within reach, but the "compromise" budget has been developed behind closed doors and so far, no information has been made available about what is included.

In other legislative news, the governor signed into law a bill making New Mexico the first state in the nation to allow psychologists to prescribe psychoactive medications for persons with mental illness. The new law, sponsored by Rep. Ed Sandoval (D-Bernalillo), allows prescriptions to be ordered by psychologists who complete an educational training program and an internship under the supervision of a psychiatrist. The Board of Medical Examiners, as well as the Psychology Board, will have to approve the curriculum for the training program. P&A's Mental Health Advisory Committee had expressed concerns over the implications for quality of care.

In addition, the legislature approved a memorial requesting that the Governor's Committee on Concerns of the Handicapped bring together state agencies, providers, and consumers to begin the development of an "Olmstead" plan for New Mexico. Such a plan would identify ways to assure that persons with disabilities are served in the most integrated setting appropriate to their needs, as required under the Olmstead decision. To date, the lead state agencies have maintained that no such plan is needed in New Mexico.

For a more complete report on the results of the 2002 legislative session, check the P&A web page at www.nmprotection-advocacy.com.