New Mexico Supreme Court won't restore funds to Legislature
Legal Events
The New Mexico Supreme Court on Thursday rejected a request to override budget vetoes, leaving negotiations about how to solve the state's budget crisis — and restore funding to the Legislature — in the hands of the governor and lawmakers.
In a two-page order, the court said it was too soon to consider any possible constitutional violations related to Gov. Susana Martinez's vetoes of all funding for the Legislature and state universities in the coming fiscal year.
The order said the Legislature's lawsuit was "not ripe for review," siding with attorneys for the governor who cautioned justices against an abuse of their judicial power.
The Republican governor has called a special session for May 24 in an attempt to resolve the state budget crisis linked to faltering tax revenues and a weak state economy.
The Democratic-led Legislature had argued that Martinez overstepped her authority by defunding the legislative branch of government and all state institutions of higher education.
Martinez had urged the state Supreme Court to stay out of budget negotiations and said her vetoes were made in pursuit of reductions to state spending and never sought to abolish the Legislature.
Thursday's ruling sent lawmakers and the governor back to the negotiating table with no signs of agreement on how to shore up wobbly state finances.
"We need to have a little love, and there is not much love going around right now," said Republican Sen. Bill Sharer, R-Farmington, describing distrust that stands in the way of a budget deal and related tax reforms.
For the upcoming special session, Martinez has outlined rough proposals to restore most vetoed funding for the fiscal year starting July 1. Democratic lawmakers say the proposals are linked to untenable tax revenue increases on nonprofits and food.
The governor's office issued a statement praising the court decision and prodding legislative leaders to abandon a proposed tax increase on gasoline sales designed to shore up state finances.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.