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Friday, March 18, 2011

Education Governor? Final Santa Fe Hours Watched, Plus: City Beat; Council Pay Boost & More, Also: It's A Gas; Follow-Up On The Big Shortage 

  • The sixty day session of the NM Legislature ended Saturday at noon. Here's the AP wrap. Gov. Martinez reacts to the session here and here's the AP rundown on the major items that passed and failed.
Education Governor?
Governor Martinez poses for a picture with Sophia.This one may very well be remembered as the "small potatoes" session because the big economic issues have been shunted aside. But as we head toward a Saturday noon adjournment there is a package of legislation that is arguably of the larger potato variety. That would be Governor Martinez's education initiatives.

They've been doing pretty well in the Senate and House committees and we'll be watching to see if all of them make it up the Guv's desk. If they do, she will have salvaged something from an otherwise pretty bare cupboard. Most of the other proposals the administration has highlighted have been emotional wedge issues or in the aforementioned "small potatoes" category. (Passage of the education bills would also be feathers in the caps of Dem State Senator Cynthia Nava, GOP Sen. Vern Asbill and GOP Rep. Dennis Roch).

The education package--ending social promotion for third graders, teacher accountability and grading the public schools--are the closest the administration has gotten to an economic agenda, albeit indirectly. The inferior performance of public school students is an impediment to job creation. Will Martinez's reforms make a difference in our schools and thus our long-term economic performance? We'll soon see if the Legislature wants to find out.

Meanwhile, Hanna Skandera, the Guv's Sec. of Education-designate, will keep the "designate" in her title for at least another year. The State Senate will not vote to confirm her this session. Skandera still gets to serve but with a clear message from Senate Dems who accuse her of being a Bush ideologue, unqualified or both.

That's in stark contrast to the bipartisan support the Guv's educational reforms have been finding. But the continued scolding of Skandera may be a blessing for Martinez. The new secretary has been taking a lot of heat from the education establishment over the proposed reforms, but in the process drawing some of it away from the Guv. And in case any of the other new cabinet secretaries didn't know it---that is the unwritten part of their job descriptions.

THE CITY BEAT

Follow up now to a bunch of City Hall stuff we've been covering. First, the council pay raise. City councilors will now be paid $17,500 a year, up from around $10,400. That's the decision from the independent salary commission which was empowered by city voters in 2009 to set councilor and mayoral pay. (The commission's final report is here.)

The commission did not approve an increase for the Mayor who is currently making around $104,000 after taking a voluntary cut from the $109,000 level.

The new pay scale--the council president will get about $20,000 a year--isn't going to make any difference in attracting more and better council candidates as some commission members argued. We have not had that problem since we went to the modern form of government in '74.

The hike to $17,500 isn't outlandish, but it does come at a time when other city employees are taking pay cuts to balance the budget. Was it necessary? Not when you consider that each councilor gets a personal assistant who makes $55,000 a year or so. And everyone is concerned that this salary commission--whose decisions can't be overturned---will give even heftier paychecks to the politicos in the years ahead, even though they are meant to have part-time salaries and be part-time public servants.

If it gets out of hand, we may have to look at asking voters to repeal the commission, just as they approved it in 2009.

The problem is from the early 70's when the City Charter was set up and they debated whether to give a councilor 10 percent or 20 percent of the mayor's salary. If they had gone with 20 percent rather than 10 percent, today councilors would be getting about $20,000 a year. But it was feared the charter would not get voter approval if they went with the 2o percent.

Should the salary commission next recommend that councilor pay be permanently set at 20 percent of the mayor's and be done with it? That's a thought.

DARREN AND TJ


And then there's the money being spent on PIO's with the city. We blogged this week about how TJ Wilham the PIO for public saftety director Darren White, has been moved aside. He's now working in emergency management. We also reported that Erin Kinnard Thompson, an aide to White, has been named to the new post of deputy director of communications. That led to this reader email.

Joe, you blogged:


"It appears that Mayor Berry would be saving $75,000 if he does not use the Wilham salary for another position."

Wilham's PIO position never existed before Berry was sworn in. Neither did Kinnard Thompson's. Between the two of them they represented approximately $135,000 in new spending (not including benefits). Had TJ's employment been terminated rather than creating a new position for him with the same pay at the Emergency Operations Center there would have been a $75,000 savings. As it stands now, with TJ still at the trough, there is no savings.

Point taken.

THE 2011 CAMPAIGN

We questioned the timing of the re-election announcement of ABQ Dem North Valley City Councilor Debbie O'Malley, pointing out that it came right when that salary commission was approving pay hikes for future councilors, news she might not want to be associated with seeing how it is not universally popular. But O'Malley says:

Thanks for posting my re-election plans.

I am running for re-election regardless of findings determined by the independent salary commission. In regards to the timing of my re-election announcement, Tuesday marked the beginning of the City's public financing process and I announced on Wednesday.


And reader Alan Schwartz adds:

I think your criticism/comment about Councilor O'Malley is mis-directed. It's the Salary Commission whose timing is out of sync. The Exploratory Period for public financing started on March 15. The Salary Commission argues that increased Council compensation could increase the pool of candidates...Arguably, anyone for whom an additional $10,000 would make a difference would seek public financing. Yet, the Salary Commission has left this group dangling in the wind as they drag out their decision. They should have wrapped this up by March 1, which would have allowed all potential candidates a level playing field at gathering seed money and testing the waters.

Thanks for that take, Alan.

And finally, we want to reiterate a correction we made to our Thursday blog. The four city council seats up for election in October are Districts 2,4, 6, and 8. In our first draft we said Councilor Michael Cook was up for re-election. He is in District 7 and is not up this year.

The four councilors elected in October will be eligible to receive the pay raises approved by the salary commission.

IT'S A GAS

We return today to the natural gas crisis that engulfed the state in early February when Arctic weather invaded the state, leaving thousands without heat. Myriad investigations are underway for the reasons behind the failure. We pick up our coverage with the comments of a Senior Alligator close to the situation:

New Mexico Gas Company officials have been kidding themselves as they pass the buck to suppliers and pipeline operators. They seem to assume they will escape responsibility for damage to businesses and homes as a result of the natural gas outage in early February. However, they failed to properly inform communities and pueblos of their intent to cut off supplies and have admitted as much in their state legislature and US Senate committee testimony. Customers are signing on to the class action law-suit as anger builds. The article in the Rio Grande Sun just highlights the lack of transparency in the oil and gas industry and how entitled the industry feels.

And that investigative report from the Rio Grande Sun:

New Mexico Gas Company officials and natural gas pipeline operators are telling conflicting stories about the causes of last month’s gas outages that left thousands of Northern New Mexicans out in the cold.

Both sides agree that the unusually cold weather helped create an imbalance between natural gas suppliers, who were putting too little into the pipelines, and local distributors, who were beholden to customer demand. However, the Company is refusing to disclose who its natural gas suppliers are and at least some of its claims that service was disrupted due to rolling electricity blackouts in Texas do not match with what electric company officials have said.


Now to Spiro Vassilopoulos, a veteran natural gas investor and Republican activist, who we first consulted when the gas went out:

I never accepted that it was an electricity problem, nor a supply problem. I've always suspected that the NM Gas Co. temporarily made their capacity available to another gas supplier or they missed their demand forecast in their IRP. However, in fairness, no one could have foreseen the extreme weather.

Spiro's full comments are here.

We all await the final government reports on what went wrong and why but we think our original take on the political impact stands. The natural gas crisis was a setback to the energy deregulation agenda promulgated by the new Governor, even as she drew generally good reviews for her response to the outage.

THE PASSING PARADE

From Farmington:

A piece of an old Farmington era is gone. Jimmy Drake, 82, founder of Drake Well Service, diedon Saturday evening after a lengthy battle with leukemia. From building an oil and gas empire to breeding and racing horses and serving on the City Council, Drake's imprint can be seen throughout Farmington.

HIGH SCHOOL ARTISTS


From Rep. Steve Pearce


Congressman Pearce invites high school students from across New Mexico’s Second Congressional District to apply for the 2011 Congressional Art Competition. The winning piece of art from each district will be displayed (at) the Capitol...The winner will receive two round trip tickets and two nights’ hotel accommodations to enable him/her to attend the unveiling ceremony in Washington. Submissions must be no larger than 28”x28” framed...Application materials are available at Pearce's web site under “Serving You.”

The deadline for the competition is April 22. (All NM high school students are eligible).

And we are past our deadline for this week of blogging. Thanks for stopping by. We appreciate it.

From Albuquerque, I'm Joe Monahan reporting.

E-mail your news and comments. Interested in advertising here? Drop us a line.

(C )NM POLITICS WITH JOE MONAHAN 2011
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Thursday, March 17, 2011

Session '11: The Merciful End Is In Sight, Plus: Spin Doctoring At City Hall, Getting New Mexico Moving & The New UNM Regent Is An Old Timer 

They're ready to go home in Santa Fe--really ready. The prevailing mood was summed up by a weary newsman as the 60 day session began to skid to a close:

You can check out anytime you like, but you can never leave -- The Eagles sang it; I'm feeling it--
The 2011 NM legislative session

And right on schedule, the tempers are flaring. Look at this exchange between ABQ Dem State Rep. Mimi Stewart and Carter Bundy, the legislative director for the AFSCME labor union:

“Stop lying about me,” Stewart said to Bundy, who accused Stewart of making untruths on the House floor during debate of House Bill 644. ”Nice ethics,” Bundy said to Stewart as the two walked away.

And another veteran ink-stained wretch is ready to call this one history:

Someone just played this Sam the Sham & The Pharaohs classic on the House floor, in honor of Rep. Bob Wooley, R-Roswell, passing a memorial. Best thing I've heard in the Legislature all day.


The session has seemed endless because of the tedium. Neither the Governor or the Legislature had a sixty day agenda. They could have passed a budget and gone home after a month.

But, as they say, the show must go on, at least until Saturday at noon. And if someone says "Special Session" they ought to have their illegal driver's license confiscated.

SPIN DOCTOR UPDATE

There will be no replacing TJ Wilham, the $75,000 PR man for ABQ Public Safety Director Darren White, but the city's new deputy director of communications, Erin Kinnard Thompson, worked for White as his PR flack when he was Bernalillo County Sheriff and was most recently his assistant at City Hall.

Wilham was ousted after insiders reported he leaked info to the newspaper regarding text messages sent by fellow PIO Chris Ramirez to an ABQ police officer who had just been involved in a fatal shooting.

White was the first public safety director to have his own PIO.

City Hall's Ramirez describes the city's current communications policy this way:

We will no longer utilize a public safety communication director. Erin Thompson and I, together, will handle all communication responsibilities including those of the ABQ Police Department and ABQ Fire Department.

It appears that Mayor Berry would be saving $75,000 if he does not use the Wilham salary for another position.

But then it appears ABQ City Councilors are going to be getting some kind of pay raise from that independent salary commission that is meeting today. Looks like that $75k is going to go quick.

As for Darren White and the joke that the most dangerous place in New Mexico is between him and a TV camera, a local television news producer informs that White's TV cameos have diminished since he was slapped with a vote of no confidence by the APD officers union.

ABQ ELECTION 2011
O'Malley
Maybe ABQ Dem City Councilor Debbie O'Malley has been out of the loop lately. Why else would she announce her re-election plans on the eve of that independent salary commission likely approving controversial pay raises for future councilors? (The nine councilors make a bit more than $10,000 a year and each has a full-time staffer who make in the $55,0000 annual range).

Nevertheless, the two term councilor is looking pretty good to snare a third term come the October city election. The details:

...Debbie O'Malley announced she will be running for re-election in Council District 2. Councilor O'Malley will be seeking public financing for her re-election bid as allowed by the City's Open and Ethical Elections Code. She will officially launch her campaign with supporters, family and friends on March 31...

O'Malley, who represents the North Valley, made a brief run for mayor in 2009, but pulled out when raising money to qualify for public financing became onerous.


Besides Debbie, Democrat Garduno and Republicans Winter and Jones are up for re-election this year. Jones has said she will seek another term. No word yet from Winter or Cook.

GETTING ABQ MOVING

And if Mayor Berry isn't too busy juggling personnel, reader Jim McClure has a suggestion for him (and Governor Martinez) on how we might start chipping away at this 9.0 percent jobless rate haunting our city:

The Republican mantra of pumping money into the private sector by reducing taxes works only when you actually have a private sector, which is a little tenuous in New Mexico. Politicians are good at creating government jobs, but efforts to stimulate private sector jobs usually are limited to (a) distributing money to businesses and (b) creating government departments of economic development.

My home town of Oak Park, IL, contracted out its local business development effort to a
nonprofit corporation backed by local banks and other businesses: A low-interest business loan program used federal community development block grants as a reserve fund deposited in local banks. The banks, in turn, leveraged the government money 3:1 for below-market loans and shared the risk in case of defaults. (Since loans were written by experienced bankers rather than government bureaucrats, defaults have been rare.) The development corporation's two-person staff recruited businesses, matched them with available properties, advised them on their business plans, fast-tracked permits and licenses and helped them qualify for government loans and grants.

A government partnership with banks could result in more lending to small business. Mayor Berry has talked about expediting licenses and permits. Temporarily suspending gross receipts taxes for business start-ups may help.

Interesting stuff, Jim, and we hope City Hall gives it a listen.

MOVING THE BALL
Mayor Coss
Unless there is a sudden (and miraculous recovery) in the construction and real estate biz, policy makers like the mayor are faced with a real jobs dilemma.

But that doesn't mean they can't work at moving the ball forward. In Santa Fe, where business conditions in the depressed tourism sector are desperate or close to it, the search for answers is underway:

Is the key to fixing our local economy buried in the Far East? A panel of prominent Santa Feans -- including restaurateur and art dealer Gerald Peters, state international trade representative Edward Herrera and Thornburg Investment Management portfolio manager Lei Wang -- spent Tuesday morning at the Santa Fe Convention Center discussing Chinese tourism with Mayor David Coss and dozens of people from the public...

"They're creating a billionaire a month in China," Peters said. "It's staggering."

And those billionaires and millionaires need to see the world, so why not here? Mystical New Mexico would seem an easy sell. And then there's the casinos here so many Chinese enjoy. And did we mention that soon they could come and take rides into suborbital space at the Spaceport for $200,000 a pop. And maybe even some of them would want to do business here after doing all this? Let's keep talking...

While the discussion at the Santa Fe Convention Center was decidedly cosmopolitan, our politics remained ensconced deeply in the provincial. Radio listeners were getting a personal dose of it as the wedge issue warfare continued over issuing driver's licenses to undocumented immigrants. Guv Martinez was blasted in this radio spot from the "Time To Govern Committee" for refusing to sign on to a "compromise" bill on the hot-button issue. The 60 second spot says:

It's a well thought out approach that will keep us all safer, yet Susana has promised to veto the bill....Call Governor Martinez let her know it's okay to stop campaigning and start governing...

Of course, there's already a rebuttal spot up from the Martinez camp which we'll post if it happens to come our way.

And even more radio from the state Democratic Party as they work to erode Martinez. Their spot is called "Where are the Jobs?"

Martinez has lost her battle over the licenses. After high profile votes in the Senate and House the two sides could not make a deal.

LEGISLATIVE EPITAPH

If you just dropped in here from Venus you might think unemployment was below five percent and the state was carrying a $500 million surplus. The epitaph of this legislative session will be the new governor's attempt to divert the public's attention from dire economic circumstances and into wedge issue warfare. If it advances her politically, the Governor will probably celebrate her decision. If it falls flat she may rue the day that she threw her peak political power behind a series of second-rate debates and avoided the state's steepest political, economic and social challenges.

THE NEW REGENT

Hopefully, retired Lt. General Bradley Hosmer is a young 73 like fellow 70 something Regent Jamie Koch.
He's been appointed by Governor Martinez to the University of New Mexico Board of Regents where major challenges await. He professes to knowing little about the university, but some faculty members say his service as a superintendent of the US Air Force Academy should help. He has also been a member of the East Mountain High School Governing Council since 2009.

But university critics, hopeful that Martinez will begin the process of depoliticizing the school after Big Bill made it his political playground, were looking for a more aggressive candidate and one who knew where the bodies were buried.

The fingerprints of former ABQ GOP Congresswoman Heather Wilson, the chair of Martinez's transition committee, may be on the hands of the appointment. She is an Air Force Academy graduate and her husband, attorney Jay Hone, was an instructor there when he first met Wilson.

Martinez has held herself out as a reformer, but Hosmer and newly reappointed GOP Regent Jack Fortner (who will now become board president) have some work to do to convince sceptics they fit that mold.

FOR THE RECORD

We rarely refer to the state's congressional districts by their numbers because it is confusing, but we made an exception in blogging on the census Wednesday and readers quickly pointed out the numbers were jumbled. For the record, Congressional District 1 is the ABQ area district, CD 2 is the southern district and CD 3 is the north...We also received email about having a Wednesday headline, "New Regent Is Old Timer," but having no story. We dropped that story about 1 a.m. to make room for the Senate budget story, but forgot to drop the headline. The report is up today....

On the state budget, we blogged that the $5.4 billion bill passed by the Senate and which would take effect July 1 trimmed "under $200 million." The AP reports the actual number is $152 million and the ABQ Journal puts it at $155 million. Late Wednesday a final budget went to the Governor.

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Wednesday, March 16, 2011

New Governor Meets The Senate--Also Known As The "Killing Fields," Plus: Inside the Census; We're Even More Hispanic 

This is what it looks like for a Governor in the final week of a legislative session. Susana is the cat and the fierce shepherds are the elders of the State Senate, a chamber also known as the "killing fields."

The Senate has already roughed up the Governor, refusing to bend to her will on driver's licenses for undocumented immigrants and adding insult to injury by watering down "Katie's Law," another Susana favorite. Innumerable measures will be either amended to death or put directly in the Senate graveyard in the final days leading up to the Saturday adjournment.

A couple of things are at play in 2011. The Senate is coming off eight years in which they were subjected to the bullying of powerful Dem Guv Bill Richardson. Senators are saying "never again." Then there's the Governor's agenda--although very limited--but still going up against a chamber with a majority of Democrats. And there's the historical independence of the upper chamber where the members are elected for four year terms and are less intimidated by the Fourth Floor.

With Senators having mussed her fur up some, Martinez, like the cat in today's picture, will be happy to escape this legislative session with no more injuries.

WEE HOURS BUDGET

Shortly before 1 a.m. today the State Senate approved a $5.4 billion budget--the main business of this 60 day session. It returns to the House for agreement and then to the Guv for signature, but it appears they will be getting out of there Saturday at noon as scheduled--barring any last minute snafus.

This is the third year in a row that we've had to trim the budget. State Senator John Arthur Smith told the state via the Senate webcast early this morning that the heady days when the state routinely ran large surpluses may be gone forever. No one disagreed and there was hardly any debate before the measure was passed on a 27-14 vote.

Smith and his colleagues trimmed about $155 million to balance the budget for the year beginning July 1. That is not as bad as some feared and significantly less than the $450 million the Governor talked of.

Still, New Mexico, as Finance Committee Chairman Smith said, is deep into a new economic era. The budget peaked at about $6.2 billion, so we have seen some deep cuts. The new budget--like the previous ones--does not call for employee layoffs, but the state has shed thousands of workers the last three years by not filling vacancies.

WEDGE WARFARE (CONT.)
Sec. Duran
Meanwhile, the administration continues its wedge issue warfare in the final legislative hours. Secretary of State Dianna Duran is cross checking the state's voter rolls with a list of thousands of foreign nationals who have been issued driver's licenses. Duran says so far she has found 37 instances of people voting who did not have Social Security numbers. But former state elections director Daniel Ivey-Soto says slow down.

There was a five year period--2003-2007--when a citizen did not need a Social Security number to get a driver's license. They presented other ID such as a passport. They could in fact be U.S. citizens. We need a more thorough investigation, not a rush to judgment.

There are 1.16 million registered voters in the state so 37 is an exceedingly small number. It will be interesting to see a case by case check of the 37 instances Duran cited to see if there was indeed any fraud.

NM Common Cause executive director Steven Allen called on Duran to forward her 37 cases to law enforcement. He points out voter fraud charges frequently surface but rarely end up having any basis in fact. Immigration groups point out that a Social Security number is not necessarily a way of proving or disproving someone's citizenship status.

Not that this has much to do with the larger issues facing the state, but Martinez is obviously being guided by her political advisers that this wedge issue will keep her atop the popularity polls and perhaps advance any national Republican political ambitions she may harbor. It remains to be seen if in the long-term New Mexico voters respond to the Guv's government by emotion.

CENSUS TIME

The census figures that rolled in Tuesday contained warning signals for Martinez and company. If their favorite wedge issues backfire it could give more Hispanics a reason to trek to the polls in 2012. Turnout will be much higher than it was in a mid-term election like 2010 when Susana was elected. And there are more Hispanic voters out there to be roused:

For the first time in the state's history, the Hispanic numbers surpassed those of non-Hispanic whites, according to Census data. Hispanics now represent 46.3% of New Mexico's population, or 953,403, a 24.6% increase. Non-Hispanic whites are 40.5% of the population, or 833,810, a growth of 2.5%.

"A lot of the growth in the Latino community is really attributed to birth," said Liany Arroyo, associate director for education and children's policy at the
National Council of La Raza, a Washington organization.

New Mexico is the most Hispanic state in the USA.

The batch of numbers that the Alligators took an especially close look at were for the state's three US House districts. One of them reported:

There are 701,939 residents in CD1, 663,956 in CD2, and 693,284 in CD3. So to reach ideal population in each district, CD1 loses 15,546, CD2 gains 22,437, and CD3 loses 6,891.

Translated that means not much change is anticipated when the seats are redistricted later this year to balance the population among them. The ABQ and northern districts--CD 1 and 3--are expected to stay favorable to the Dems and the southern district--CD 2 friendly to the R's.

An early problem for the Dems is not the redistricting of the ABQ district--CD 1--but finding a top notch candidate to replace Dem Congressman Martin Heinrich should he decide to leave the seat to make a run for the US Senate slot being vacated by Senator Bingaman in 2012.

The state's total population is now 2,059,179, an increase of 13.2 percent over the 2000 census.

OBAMA ON NM TV

The President says he's in our corner when it comes to ample federal funding for Sandia and Los Alamos Labs, but that still leaves unanswered exactly what budget emerges from Congress for the two facilities which are huge drivers for the state's economy. In an interview with local TV news Obama affirmed his support. And he demonstrated it recently by backing increased lab funding as part of the Start II nuclear weapons treaty.

The Japan nuclear disaster was a backdrop for the interview and the President said:

One of the things that 'it' reminds us of is that the safety and the constant monitoring and oversight that we're providing to our nuclear facilities here in the United States has to be maintained
.

House Republicans are trying to scale back the funding increases Obama has requested for the labs. Such funding is a potential 2012 campaign issue for Obama in swing state New Mexico. But the President wouldn't be giving a local TV interview at the White House because of that, would he? Of course not.

TAKE TWO

Back at the Roundhouse, the film industry says it hasn't given up on getting a better deal from lawmakers who have before them legislation capping the film tax rebate at $50 million a year. The industry has come with a TV spot urging viewers to put pressure on the Guv for a better deal. Interestingly, the commercial also puts heat on ABQ Mayor RJ Berry. ABQ is the area that benefits most from film shoots and even the ABQ Chamber of Commerce has come out for continuing the rebate program as is. But Republican Berry has been mute, refusing to break with Susana and setting him up for a hit if Hollywood heads out of town because of reduced incentives.

UPDATE: Late last night the Senate approved the $50 million cap on a 30-10 vote. However, it did amend the bill to restore a payout method favored by the industry. The bill now goes back to the House which approved a $45 million cap.

And there's also this accountability measure aimed at building support for the industry now on its way to the Guv's desk. From the Senate:

A film tracking and accountability measure is on its way to the Governor for her signature. Sen. Tim Keller says his bill would make a clear assessment of the impact of New Mexico's Film Production Tax Credit and put to rest the ongoing debate over whether the film incentives are a strong benefit to the state...(The bill) requires increased film industry responsibility, transparency and accountability in order to be rewarded with the state tax credit....

THE BOTTOM LINES

Paula Maes is now president of the ABQ School Board, not Marty Esquivel as we blogged in a first draft Thursday...It was close but our friends in Roswell came up short in the 2010 census. To be exact, that's 1,634 residents short. Roswell's population of 48,366 is that much shy of the coveted 50,000 mark when a city becomes eligible for more federal funds. Other city populations from the census: Albuquerque;
545,852; Las Cruces, 97,618; Rio Rancho, 87,521; Santa Fe, 67,947.

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Tuesday, March 15, 2011

The R Jobs "Plan" You Probably Didn't Know Of, Plus: Readers Weigh In On Session, And: A Rainy Day In Texas 

There is actually an economic plan from Governor Martinez and the legislative Republicans. You just haven't heard them say it out loud. That's how one of our Senior Alligators of the Republican variety explains the sounds of silence in Santa Fe over the number one issue on the minds of voters.

Republicans believe if they balance the budget, eliminate regulations on business and don't raise taxes, the private sector will produce all the jobs we need...


And that's the plan. You just haven't heard anyone in the Republican Party say it lately.

Of course, our state is required by its Constitution to have a balanced budget and we have had sizable tax cuts in the last few years. As for regulations, the city of ABQ completely eliminated impact fees on construction and the state hasn't imposed any job-killing regulation of late. (No, the PIT rule isn't an exception).

So where are the jobs? According to a reader grown frustrated with the unemployed, the jobs are out there:

Those who want to work will find work. Those who want a siesta at government expense will cruise for as long as it lasts. I was at Coaches sports bar over the weekend watching basketball. Place was full of unemployed drinking my tax dollars and having a good time. There is not much sympathy here for the plight of the unemployed....

Well, despite that Draconian view, there's plenty of sympathy for the unemployed. But there's not a wealth of new ideas on how to spark the state's lackluster economy and get them out of Coaches and onto the playing field of life.

THE REVENUE SIDE

Reader Joan Fenicle writes of the legislative session:

Without a willingness to even discuss the revenue side of the picture (high income folks and out of state corporations to start), the legislature’s mission of balancing the budget was doomed from the start. We can’t keep “putting the fiscal house in order” on the backs of working people!


Governor Martinez has pledged to veto any and all tax increases during her four year term. Governor Richardson reduced the state personal income tax so that now those at the top of the income scale essentially pay the same income tax rate as those in the middle.

Reader Pete Baston adds:

99% of all legislation and discussion at the Roundhouse should be totally focused on economic recovery and job creation but then again I suppose pigs may also fly...

We have had economic legislation discussed this session, but not much.


SUPER BOONDOGGLE?


A reader writes:

Joe, I can't believe the Governor hasn't killed this idea already. Why in the world would the state need to spend 10 million for this land in the middle of nowhere and then spend millions more to create cushy new offices for state employees, while at the same time ruining the Santa Fe office market for years to come? "Super Boondoggle not Super Complex."

And the news story:

Gov. Martinez has asked for another three months to make a decision on a proposed new “supercomplex” government office building south of the city on the Las Soleras property.

If the project becomes a reality, all Human Services offices, now scattered in several rented buildings in Santa Fe, would be under one roof. The state would pay the partnership $6 million for the land and give the partners 4.4 acres of state land in southeastern Santa Fe...

Martinez hasn't brought much to Santa Fe in the way of legislative initiatives, but she has brought with her a sense of frugality fitting with the times. We'll see if that is the case with the "Super Boondoggle."

THE EDUCATION BEAT

Some equal time now for those who differed with our view that the Guv's education initiatives are generally worthy of support. Eight year APS teacher Alyssa Agranat says the teacher accountability measures (SB 502) that passed the Senate and is now in the House is not an answer:

I agree that this state desperately needs a revolution in education. Teachers, like myself, welcome accountability and accurate, fair evaluations of our work. We would love there to be more efficient mechanisms in place for principals to be able to get rid of the few ineffective teachers who make the rest of us look bad. However, SB 502 is not the answer. When it was approved in the Senate on Friday night, my heart sank...

There are very harmful provisions in this bill that will defeat it's own purpose...When a teacher’s career is tied to student scores, even if it is only a percentage of that teacher’s “effectiveness” rating, what incentive does a teacher have to stay in a challenging school? For me, I hope my love of these children is enough to keep me in a tough school, and take my chances with their test scores.


Here's Agranat's full remarks.

By the way, we'll blog your longer pieces, including op-eds, by linking to them on an external site. Feel free to email them in.

A RAINY DAY IN TEXAS


It appears various proposals to use the state's $14 billion in Permanent Funds to solve our fiscal woes will go nowhere in Santa Fe this year. Our budget shortfall is not of the size to galvanize public opinion for such a move. But look over at Texas. The story could be different there as they grapple with a shortfall in the tens of billions. The El Paso Times editorial page opines:

In 1988, Texans voted to establish the Rainy Day Fund. Here is the ballot language: "The constitutional amendment establishing an economic stabilization fund in the state treasury to be used to offset unforeseen shortfalls in revenue."...It was a prescient move because Texas now faces a revenue shortfall that demands use of the Rainy Day Fund...The Legislature has to take care of a projected deficit for the 2012-2013 biennium estimated at as much as $27 billion...This is a good use of the estimated $9.4 billion Rainy Day Fund.

With long-term prospects for the New Mexican economy baffling at best, you wonder if we are not too far from the day when the use of our Permanent Funds starts to draw wider support.

Governor Martinez doesn't talk much anymore on how New Mexico should emulate Texas. Thanks for that, Guv.

THE GUV'S GANG

First it was Martinez political strategist Jay McCleskey announcing he was opening his own advertising and consulting shop. Now it's Danny Diaz, another Martinez consultant who also served as her transition spokesman, getting into the act. While McCleskey is based in NM, Diaz is in DC:

FP1 Strategies, a public affairs, media relations and advertising firm specializing in project management, strategic planning, message development and advertising for political and issue-based campaigns announces its formation. It is founded by Terry Nelson, Jon Downs and Danny Diaz...


Wonder if Danny and Jay will be competing for Susana's ear?

WHEN DID IT START?

Sometimes we wonder how we get in these things, but too late now. Another reader on just when the Dems began attacking Susana Martinez in the 2010 campaign:


Not to throw hot water on the anonymous state Dem party official retort to James Meier, but the state Dem Party was knee deep in attacking Susana Martinez pre-primary. Just look at the absolutely foolish and amateurish public battle over public records requests by the state Dems and the attempts to shop the IPod purchases by her office. The state Dem party leadership did a very good job of inoculating Martinez against post-primary attacks. It would seem that someone at the State Dem Party suffers greatly from amnesia...

THE DREAM DIES

The long-held dream of former NM GOP Senator Pete Domenici of having nuclear power provide a larger share of the nation's electricity needs ended for good Monday as the Japan tsunami and subsequent nuclear catastrophe washed away any hopes for a nuclear power revival in our lifetime.

New Mexico's ties to the nuclear industry remain, including Sandia and Los Alamos Labs. We also have a large uranium processing facility in Lea County.

MY BOTTOM LINES

No wonder the part-time politicos in Luna County are smuggling guns to Mexican drug dealers. The unemployment rate in the county is 22.5%....How about ABQ School Board member Marty Esquivel taking on ABQ State Senator Cisco McSorley in a Dem primary in 2012? Cisco may be vulnerable after being stripped of his judiciary committee chairmanship...

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(C )NM POLITICS WITH JOE MONAHAN 2011
Not for reproduction without permission of the author

Monday, March 14, 2011

No Relief On Jobs Front; ABQ Still Slammed; Politicos Stay Mum, Plus: Spaceport News, And: Dems And An "Electric" Leader 

What recovery? The latest jobless stats put the unemployment rate in the ABQ metro at a still unsettling 9.0 percent, while the state in January remained stuck at 8.7 percent. The experts say the turnaround is around the corner (we've heard that before) but January marked the 28th consecutive month of negative job growth in the city--the longest since the Great Depression. Even the professional and business classes are getting slammed, posting a year over year job loss of 3,700. That's after that sector had two down years in '09 and '10.

But it is the working classes that are really being decimated. The depression--yes, depression--in the construction and manufacturing sectors here has been merciless. We've recorded year over year construction losses for 49 months. That's four years. Construction employment in the metro is now below 20,000--the lowest since 1999. Manufacturing losses went for 39 consecutive months, before having a slight uptick and dipping down again in January.

In the Westside and Valley neighborhoods of ABQ this life-changing economy has sent them to the churches, reports a friend in the construction and hotel industry:

Joe, they are lighting candles at the churches, praying for jobs. There are simply none available. Nothing is being built and nothing is coming in.

If the official jobless rate is 9 percent, the rate that includes those who have left the work force and those that are underemployed is in the teens.

The political classes seem to be out of brainpower and maybe willpower when it comes to the ongoing jobs crisis. In Santa Fe, the House GOP put out a press release last week touting the impact of their 12 Republican freshmen members and the legislation they are sponsoring. It said they they are "fighting corruption and creating jobs."

On the corruption front, we have a new Governor who was a district attorney and who made pay to play politics her dominant issue. We don't need more repetitive ethics and corruption legislation--just a Governor serious about fighting it. We just elected one.

As for creating jobs, the list of freshmen legislation was dominated by issues that had nothing to do with putting people to work or spurring business. They included: Abortion, marriage between a man and and a woman, requiring voter ID and creating tougher rules for sex offenders. How's that supposed to put bread on the table?

And it's not only the freshmen R's. We've already blogged of the lack of a jobs message from the Democrats as well as how the new Governor treats the issue like it's smallpox.

WAIT AND SEE


The politicians are simply waiting for what they see as a natural and robust rebound from this ravaging downturn. But the best and brightest of our young people who represent the future won't wait. They will continue to leave while the working class kids are stuck eating cheetos and watching sitcom reruns. That's not a new story, but back when things were humming it appeared we might have been turning the corner. Now it looks as though we are retrenching.

We are still shedding jobs. The only good news--if you can call it that--is that we are shedding them more slowly than the earlier record-setting pace and that some sectors--like mining--are adding some workers. The cities--where most New Mexicans live--are under water. The city of Santa Fe is a fiscal wreck with unemployment of 7.3 percent, an astounding rate for a city that has so much government employment. There's so much red ink in the budget they could use it to restripe Cerrillos Road.

Meanwhile, at the Roundhouse the fiddling goes on with a state Senator prancing around the chamber with a snake around his neck and a state representative getting married on the House floor. What did the Romans say about amusing the masses with bread and circuses? Well, Santa Fe certainly has the circus part down pat.

PEARCE PRESSURE


The federal billions pumped into here each year become even more crucial in a stagnant, no-growth economy. On that front the recent news is mixed. House Republicans in charge in Washington are now eyeing those proposed increased funding levels for Los Alamos and Sandia Labs. The bottom line is that the budget boost may not be as much as first announced by retiring Dem Senator Jeff Bingaman.

Steve Pearce, the only R in the NM five member congressional delegation, tells us he doesn't think "there is a mood" to cut the labs. Well, DC is looking like a pretty moody place. Not that all of the Los Alamos funding can be defended, even by those of us in the pork cheering section. But Sandia has positioned itself better and has the most impact in the major metro. It's that one that Pearce needs to bird dog most and Bingaman needs to deliver for--one last time.

THE FINAL FRONTIER


For southern NM, it is the Spaceport that could start rebuilding the economy in a big way, and there is a bit of encouraging news to report on that front. The new CEO for Virgin Atlantic, George Whitesides, the anchor tenant at the Spaceport, paid a visit to Las Cruces and restated the company's commitment to putting tourists in suborbital space. Whitesides, 36, told the Spaceport America board of directors that Virgin spending will total in the area of $400 million for developing the vehicles that will get the job done. (Virgin Galactic signed a 20-year lease as the anchor tenant and will pay $1 million per year for the first five years, as well as payments on a tiered scale, based on the number of launches the company makes).

Spaceport board chair Rick Holdridge made a positive move by inviting Whitesides to visit here after Governor Martinez dismissed the entire previous board and executive director. But why didn't state economic development director Jon Barela attend or Martinez herself? We are still not seeing the hand prints of the administration fully on this project and that remains worrisome.

In addition, there was apparently no talk at the meeting about the Guv's insistence that "private" money come in if need be to see the $225 million Spaceport to completion. If push comes to shove, we suppose the Legislators from the south will prevail upon Martinez to approve any extra cash needed. At least one hopes so.

We've repeated to the point of ad nauseum that the Spaceport's sole focus today needs to be on putting the first civilians in suborbital space. From that landmark event--one that will shower New Mexico with worldwide attention-- all else will flow, including the private investment that so concerns the Governor.

SAY WHAT?


It is the messaging out of the Fourth Floor---or the lack of it regarding the state's economic standing and planning that stands out like a lonely roadrunner on an isolated stretch of I-40. It's mostly about illegal driver's licenses and Katie's Law. Okay, but when did they change the nameplate on her desk to "Attorney General Martinez?"

If the Guv seems stymied on the economy and jobs in the here and now, she may have better luck in laying the groundwork for the long term. She and education Secretary Skandera have brought fresh energy to the perennial education debate, offering new proposals and reviving hope that policy makers are finally getting it and ready to shake things up. Some of the ideas have been attacked as simplistic and maybe they are. But Martinez and Skandera have had strong messaging. That happens when you have a plan. Parents and most teachers get the idea--the new government is excited about doing something to turn around mediocre or even dreadful public school performance and is willing to take risks to pull us out of the basement.

Rather than pounding wedge issues like licenses for illegals or other crime related legislation in this final week of Legislature 2011, the Guv would do well to tout her educational agenda. It appears it will be the bright spot of an otherwise mostly dreary and lackluster sixty day session.

WHO'S ELECTRIC?

From Santa Fe, a wall-leaner comes with the conventional wisdom regarding the Democratic Party:

Legislators and Democratic politicos are openly concerned about the lack of leadership in New Mexico. Democrats need a combat approach with a "mano a mano" political style. In Valencia County, all the Democrats who made a run for office in the 2010 election lost to Republicans. Most Dem legislators are feeling "heat" and fear the 2012 elections. We just lost the Governor's race and several House seats. What's next? Democrats need a boost--a person with electricity!

The Dems had that "electric" personality with Bill Richardson, until things went south. And they had it when Bruce King was Governor. Both of them occupied the broad center of New Mexican politics, building coalitions and moving the game forward.

Today the Democrats are in limbo, awaiting the emergence of the next King or Richardson--that "electric" personality who can lead from the center without alienating the left or right. That's why many of them are scared. The sheep need a shepherd.

SLOWLY BUT SURELY?

There are 28 executive vice presidents, vice presidents and associate vice-presidents at the University of New Mexico. Even after all the bitching about this excess? Maybe change is finally coming:

The regents concluded, however, that regardless of budget cuts to departments, a tuition increase will likely help balance UNM’s budget.

"I have no problem raising tuition if we’ve done everything to lower our costs,” Regent Jamie Koch said. Koch said he recommended cutting vice president salaries to avoid raising tuition.


(Regent Don) Chalmers said that was a feasible option. The regents requested further analysis on tuition increases and whether vice president salaries can be cut by the time the regents approve the budget March 14 (today).

It's interesting how fast they can raise tuition, but when it comes to cutting the VP excess the process takes months and months....and months.

This is the home of New Mexico politics.

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(C )NM POLITICS WITH JOE MONAHAN 2011
Not for reproduction without permission of the author

 
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