State files response to judicial employee leave policy lawsuit 

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State files response to judicial employee leave policy lawsuit 

SANTA FE – The New Mexico Department of Finance and Administration (DFA) filed a response to the Administrative Office of the Courts’s (AOC) lawsuit against the agency. DFA’s response aims to protect the Legislature’s exclusive power over the expenditure of public funds and the constitutional authority of checks and balances, while respectfully requesting a fair tribunal.

The lawsuit stems from DFA’s declining paid time off (PTO) payouts on the grounds that the policy violates legislative restrictions on the expenditure of public funds. The decision to withhold PTO payouts is based on current law as confirmed by a legal opinion from the New Mexico Department of Justice (DOJ).   

“It is as clear as day how far reaching and potentially dangerous of a precedent this case could set and its potential for undermining the rule of law,” said DFA Secretary Wayne Propst. “The AOC asserts there is no room for oversight by the Legislature of the Courts, but the fact is, New Mexicans are entitled to it. We work for the public and all branches of government must abide by the law and the checks and balances of our Constitution. That’s what we are fighting for with our response. This is much more than a dispute over PTO.”  

Judiciary’s attempt at creating an independent government
AOC’s lawsuit against the state is an attempt to consolidate power and avoid Legislative oversight of public funds.  Since the New Mexico Constitution’s separation of powers establishes the judiciary as an independent branch of government, not an independent government. 

The Legislature should be afforded the opportunity to exercise its authority and as such, the Supreme Court should not permit the proceedings to continue without the Legislature as a party in the case. Moreover, the AOC should use the democratic legislative process to obtain the necessary authority to use the public purse for PTO payouts for judicial employees. 

How PTO is a bonus structure
The AOC’s PTO policy allows employees of the judiciary to earn hours of sick and annual leave each pay period at the same generous rate as other state government employees. However, PTO removes the distinction between the two types of leave and disregards caps and restrictions on “buybacks” and “payouts,” essentially creating a yearly bonus system for employees and providing significant payouts for retired judicial employees above what is authorized in current law.  

PTO costs the taxpayer more
In just eight months when DFA allowed PTO payouts to be made, pending the opinion from the DOJ on its legality, AOC employees received nearly $1 million in yearly bonuses and “golden parachute” payouts above what the current law entitles them to receive. PTO costs the taxpayer around 180% more to pay out judicial employees than other state employees. The ten judicial employees with the highest payments received over $20,000 on top of what the state historically allows.