11-04 Cutting to the Bone

By JAY MILLER
Syndicated Columnist
SANTA FE -- The parade of Gov. Bill Richardson's department secretaries has begun. Each tells a story of what a 7.6 percent cut will do to the governmental services they provide.
Most have been a little to a lot over the top. But remember, these agencies sustained a four percent cut from the 2009 Legislature which ended last March. And each will be in for more cuts come the 2010 Legislature beginning in January.
Lawmakers are squealing about the scare tactics but one purpose they do fulfill is providing the public a picture of what is at risk either now or after the 2010 Legislature.
Much was said about how many legislators didn't comprehend the extent to which state government had to be cut during the special session. Now the public is learning the extent of those cuts and the cuts to come.
Of course, the cuts to state agencies had to be extra big because the governor wanted to leave education alone. That angered many legislators, including Senate Finance Committee Chairman John Arthur Smith, a Deming Democrat, who said, "That's what the governor gets when he walks the plank for education."
Gov. Richardson also wanted no tax cuts. The majority of lawmakers were thrilled about that but that made the executive agency cuts have to be even deeper.
The governor was counting on much of the deficit being made up with unused capital outlay money. But the Legislature put a stop to that. On the final day of the special session, an Albuquerque Senator managed to tack on an amendment saying next January's regular session would at least consider transferring up to $150 million of unused pork into the general fund.
That was the vote on which Lt. Gov. Diane Denish broke a tie. The Senate leadership was livid but has now transferred its anger to Gov. Richardson, who subsequently froze that $150 million so it doesn't get spent before January.
Now Senate leaders have changed their tune and say they were planning to transfer the $150 million to the general fund in January anyway so there was no good reason for the governor's action.
Capital outlay "pork" is likely to be even more controversial in the 2010 Legislature than tax increases. Reportedly there is over $1 billion in capital outlay funds sitting unused. But capital outlay is the Holy Grail of nearly every legislator.
They will do anything to get it and keep it because they believe pork is what keeps getting them reelected. They take great pride in pointing to a building, park or stretch of highway as being the bacon they brought home. Even better is to get one's name on a project. Then one doesn't have to point. Everyone knows pointing is impolite.
Pork comes from three sources. General fund money that otherwise could be used for ongoing governmental activities, severance taxes and bond issues approved by voters in November elections.
It shouldn't surprise you to learn that capital outlay projects voted on in bond elections are for popular projects such as school buildings, senior centers and public safety projects.
Projects financed with general fund or severance tax money likely would never survive a statewide vote of the people.
Severance taxes paid by the oil and mining industries are recurring revenues. The amount varies depending on the price of the oil, gas and minerals extracted from New Mexico soil but there always will be a good stream of income.
That means it would be possible to use severance taxes for operational expenses without running into the argument that it is one-time money.
So two of the sources of pork could be used to plug the big hole in our budget. That still would leave bond issues approved by voters to finance capital outlay projects -- as long as they are approved by voters.
WED, 11-04-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

11-02 Budget Cut Battle Continues

By JAY MILLER
Syndicated Columnist
SANTA FE -- As predicted here, it's as though the special legislative session never ended. Verbal assaults are still flying between Gov. Bill Richardson and legislative leaders.
Progressive Democrats still are upset the governor and their leaders prevented any consideration of tax increases. Moderate Democrats and Republicans continue to insist that deep cuts in all budgets are the only answer.
The battle actually started well before the special session began. Conversation back in August centered around a $400 million deficit in a $5.5 billion budget. That was about a seven percent deficit. The governor talked about plugging half the hole with non-recurring money and making a 3.5 percent cut in state government spending.
By September, the deficit looked more like $550 million, which is a 10 percent hole in the budget projections. At that point, Senate President Pro Tem Tim Jennings, D-Roswell, sent a letter to public schools and colleges advising them to prepare for budget cuts as high as 10 percent.
By early October, the deficit appeared to have grown to $660 million. Senate Finance Committee Chairman John Arthur Smith, D-Deming, then joined Jennings in another letter to school superintendents reemphasizing the possibility of 10 percent cuts.
An angry Gov. Richardson countered with instructions to the special session that education funding was not to be touched. The Legislature retaliated with legislation that barely cut schools but hit agencies under the governor twice as hard as any other agencies.
So Gov. Richardson shot back with a barrage of arguments and actions. He listed the cuts he had made during the past year in his agencies and noted that other agencies and the Legislature had not made similar cuts.
Richardson also froze $150 million in capital outlay projects on which no action has taken place, charging that the Legislature had not touched a dime of its pork.
Legislative leaders fired back that they had passed legislation asking three different agencies to identify $150 million of dormant capital outlay projects and report back to the January session, at which time lawmakers might transfer the money into general fund expenses.
Legislative leaders claimed Gov. Richardson's actions were unnecessary because the legislature already had taken action to identify projects to be cut. Richardson noted at least one of those projects, on which nothing had happened for two years, suddenly had activity following the Legislature's action.
Immediately after the special session ended, Gov. Richardson established an email address to receive comments from New Mexicans about the proposed legislative cuts. He also held an afternoon of open office houses with five minutes allocated to individuals and groups.
You can be sure Richardson is gathering all the ammunition he can to use as rationale for any vetoes he may choose to make by his Nov. 12 deadline for taking action on special session legislation.
Gov. Richardson also has asked all the executive departments under his authority to prepare a list of cuts that will be necessary with the 7.6 percent decrease the special session imposed.
Those reports are beginning to come in and the information is being released from the departmental cuts that appear as though they will generate the most public concern.
The big question now is where they go from here. Will the governor and lawmakers still be polarized come January? Or will there be efforts to work out a package of targeted cuts and tax increases on which a majority can agree?
Gov. Richardson has announced his desire to gather a working group of government officials, legislative leaders, interest groups and others to craft some solutions. Let's hope they can sheath their swords long enough to accomplish something.
But expect a heavy dose of political posturing even if they can agree on a few items. Republicans and Senate leaders will still see ample opportunity in targeting Richardson. And we know the governor loves a good fight.
MON, 11-02-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

11-02 Budget Cut Battle Continues

By JAY MILLER
Syndicated Columnist
SANTA FE -- As predicted here, it's as though the special legislative session never ended. Verbal assaults are still flying between Gov. Bill Richardson and legislative leaders.
Progressive Democrats still are upset the governor and their leaders prevented any consideration of tax increases. Moderate Democrats and Republicans continue to insist that deep cuts in all budgets are the only answer.
The battle actually started well before the special session began. Conversation back in August centered around a $400 million deficit in a $5.5 billion budget. That was about a seven percent deficit. The governor talked about plugging half the hole with non-recurring money and making a 3.5 percent cut in state government spending.
By September, the deficit looked more like $550 million, which is a 10 percent hole in the budget projections. At that point, Senate President Pro Tem Tim Jennings, D-Roswell, sent a letter to public schools and colleges advising them to prepare for budget cuts as high as 10 percent.
By early October, the deficit appeared to have grown to $660 million. Senate Finance Committee Chairman John Arthur Smith, D-Deming, then joined Jennings in another letter to school superintendents reemphasizing the possibility of 10 percent cuts.
An angry Gov. Richardson countered with instructions to the special session that education funding was not to be touched. The Legislature retaliated with legislation that barely cut schools but hit agencies under the governor twice as hard as any other agencies.
So Gov. Richardson shot back with a barrage of arguments and actions. He listed the cuts he had made during the past year in his agencies and noted that other agencies and the Legislature had not made similar cuts.
Richardson also froze $150 million in capital outlay projects on which no action has taken place, charging that the Legislature had not touched a dime of its pork.
Legislative leaders fired back that they had passed legislation asking three different agencies to identify $150 million of dormant capital outlay projects and report back to the January session, at which time lawmakers might transfer the money into general fund expenses.
Legislative leaders claimed Gov. Richardson's actions were unnecessary because the legislature already had taken action to identify projects to be cut. Richardson noted at least one of those projects, on which nothing had happened for two years, suddenly had activity following the Legislature's action.
Immediately after the special session ended, Gov. Richardson established an email address to receive comments from New Mexicans about the proposed legislative cuts. He also held an afternoon of open office houses with five minutes allocated to individuals and groups.
You can be sure Richardson is gathering all the ammunition he can to use as rationale for any vetoes he may choose to make by his Nov. 12 deadline for taking action on special session legislation.
Gov. Richardson also has asked all the executive departments under his authority to prepare a list of cuts that will be necessary with the 7.6 percent decrease the special session imposed.
Those reports are beginning to come in and the information is being released from the departmental cuts that appear as though they will generate the most public concern.
The big question now is where they go from here. Will the governor and lawmakers still be polarized come January? Or will there be efforts to work out a package of targeted cuts and tax increases on which a majority can agree?
Gov. Richardson has announced his desire to gather a working group of government officials, legislative leaders, interest groups and others to craft some solutions. Let's hope they can sheath their swords long enough to accomplish something.
But expect a heavy dose of political posturing even if they can agree on a few items. Republicans and Senate leaders will still see ample opportunity in targeting Richardson. And we know the governor loves a good fight.
MON, 11-02-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-30 Halloween Is Second Biggest Holiday

FRI, 10-30-09

SANTA FE ? Political correctness has not been able to kill Halloween. Despite efforts to portray it as satanic, pagan, religious, frivolous, dangerous, scary or bad for our teeth, Halloween is second only to Christmas as the biggest holiday of the year in terms of sales.
According to a Scripps Howard News Service story from a few years ago, more candy is sold at Halloween than on Valentine's Day and more parties are held than on New Year's Eve. It's hard to believe that a national social chairman somewhere keeps track of how many people have parties on a given night, but it's a pretty safe bet that Halloween wins because New Year's Eve is mainly for adult partying.
Adults do their share of Halloween partying too. The Scripps article says two-thirds of all grownups will celebrate Halloween and half of them will spend more than $100. Much of that adult expenditure may be for the front yard. Halloween displays in many neighborhoods are becoming very elaborate, especially with all the new gadgets now available in stores.
In Santa Fe, I don't see many outdoor Halloween decorations. The big time for outdoor decorations here is at Christmas when houses throughout town are lined with farolitos, or luminarias as they are called in the rest of the world.
We've always tended to stay home on Halloween. It's fun to see the kiddies in their costumes although there certainly aren't as many trick-or-treaters anymore. When I was growing up in Deming, my parents felt it was a good idea to stay home and give out treats in order to avoid the tricks high schoolers used to play. Now, the only high schoolers we usually see are collecting for UNICEF.
Over the years, we have spent a Halloween in the Chicago suburbs and one in Phoenix. In both of those areas, Halloween decorations were everywhere. Our six-year-old grandson in Scottsdale is invited to Halloween parties every night this week.
We haven't spent much time in other New Mexico communities on Halloween so I'm not sure whether house and yard decorations are popular in other areas of the state. It may be that in New Mexico, centuries-old traditions have tended to recognize the night of October 31 as the hallowed evening before All Saints Day.
Actually, adults may be taking Halloween away from kids. Many schools have discontinued Halloween parties because of the fear that cardboard witches are perverting our youth and trick-or-treating is discouraged by warnings that all goodie bags should be taken to the nearest x-ray machine. I have seen claims recently that there is no record of a child ever being injured by Halloween candy. Is it just an urban myth?
It is easy to prevent schools and other government entities from observing tradition. All it takes is for one person to be offended and public agencies back down quickly. Some churches now take offense at Halloween because it either is pagan, satanic or an occult religious festival.
Some schools worry that Halloween celebrations could encourage satanic cults. From what I've seen of student cults, anything as mainstream as Halloween would turn them off. And people who view themselves as witches don't appreciate the way we portray them on Halloween.
Halloween really isn't much of a religious observance. The eve of All Saints Day is said to have its roots among the Druids, but in America the day has been claimed by decoration companies and costume manufacturers for a giant national costume party.
Why is Halloween so popular? Could it be we like to be scared? Do we have a fascination with the macabre? That could explain why pre-teen boys love the goriest of costumes. Or maybe it's because we Americans like to have fun. That might explain why some of the most popular masks are representations of past and present political figures. Reportedly one of this year's favorites for adults is the Bernie Madoff mask.

 

10-28 Round 1 of 2010 Budget Cuts

By JAY MILLER
Syndicated Columnist

SANTA FE -- The closing gavel of this year's special legislative session also served as the opening gavel for next January's 2010 Legislature.
The first round has been completed. And as in any heavyweight fight, the budget cutters and tax increasers spent their time feeling each other out.
Now that the combatants know other's tendencies, both can proceed to defend their territory and attempt to maximize their advantages.
As the battle of the budget deficit began, neither side was sure of what it was up against. Was this a deficit that could be addressed with short term solutions and soon it would go away? Or would it take big tax increases and/or deep budget cuts to tame?
By session's end lawmakers knew they were looking at something big. It was a deficit that had been growing at the rate of about $100 million a month and gave no indication of slowing.
Limited by restrictions imposed by the governor in his special session call, lawmakers concentrated on sweeping up the remainder of non-recurring revenues lying around and supplemented them with some rather major cuts to agencies under the governor.
But at this point, all 112 legislators appear to understand that painful cuts and/or hefty tax increases are the only alternatives remaining in January.
Which it will be is still to be determined. Most Republicans left the special session talking about Band-Aids on an open wound. Most Democrats left talking about kids, the frail and the elderly. No surprises there. The sides appeared rather evenly divided so the solution likely will be a combination of tax increases and government cuts.
Gov. Bill Richardson has signaled that he will appoint a working group of executive and legislative staff, representatives of business and education and other interested groups to develop recommendations for the January session.
That group is unlikely to get started for awhile because the governor has 20 days after the special session's end to decide whether to sign or veto each piece of the Legislature's work.
But regardless of when that working group begins its deliberations, all 112 lawmakers will be confronted daily with the realities of the 2010 session. There will be no dodging that.
The governor says he wants to hear from New Mexicans about the budget crisis. He has set up a website and is scheduling open office hours beginning immediately. Evidently he wants ammunition for what he signs and vetoes from the special session. That deadline is around Nov. 12.
Lt. Gov. Denish also wants to hear from you. She has a special telephone number to call with suggestions for governmental efficiency. She will also follow up on any reports of waste or abuse.
Denish got to participate in one of the more controversial votes of the session. An amendment to the budget bill called on three governmental bodies to designate $150 million in capital outlay projects, not yet started, to take from each lawmaker for use in reducing the budget deficit.
Often tie votes are created by senators to force lieutenant governors to take positions on difficult issues that might jeopardize their political career.
But this vote didn't bother Denish in the least. She voted to approve the amendment and then issued a news release announcing her pleasure in helping reduce pork and promising future efforts to discontinue the system completely.
Not only do the governor and lieutenant governor want to hear from New Mexicans, interest groups and the news media do too. One poll already conducted by education groups shows registered voters don't want public school funding cut and will support an increase in various taxes in order to keep it from happening.
At about the same time, the Rio Grande Foundation reported that New Mexico has the eighth highest per capita education spending in the country. That must mean we have significantly more students per capita than other states because New Mexico ranks 31st in expenditures per pupil according to the National Center for Educational Statistics.
WED, 10-28-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-26 More Pain Ahead

By JAY MILLER
Syndicated Columnist
SANTA FE -- We're not out of the woods yet. Have you noticed that our state budget deficit grows about $100 million a month beyond projections?
Last March, the 2009 Legislature plugged a $500 million hole. The budget reduction was projected to get us through until July 2010. But by August 2009 we were already over $400 million further in the hole.
In September, that deficit rose to $550 million and in October, it was $660 million. At this rate, by January, when the 2010 Legislature convenes, we'll be another $300 million deeper in the hole.
When will the slide end? New Mexico's economy runs behind the curve so the national picture will have to start looking better first. The way it's going, we'll have to start rooting for $4 a gallon gasoline to return. Since our state's revenues depend so much on the oil and gas industry, that should take us back to financial health.
Meanwhile Gov. Bill Richardson is pushing back at those who make him the culprit for New Mexico's desperate economic situation. Even Democrats, most notably Sen. Jerry Ortiz y Pino, a lieutenant governor candidate, have criticized Richardson's big-spending ways for getting us into trouble.
Republicans are gleefully quoting the Democratic senator's remarks but Richardson reminds them that none of his bold initiatives could have happened without legislative approval.
Republicans loved the governor's tax cuts for the wealthy and many voted for his big economic development programs. But lawmakers are disregarding that information and the governor's contention that we're in a national recession that all states are experiencing.
Richardson's contentions are accurate although it must be added that some of the votes for the governor's initiatives were strong-armed with vetoes of opponent's pork projects. Pork is so important to nearly all lawmakers that they will acquiesce at the mere hint of a veto.
Why do lawmakers love their pork so much? Evidently nothing helps their campaigns for reelection more. Capital outlay projects are tangible evidence of a legislator's effectiveness.
And do legislators really want to get reelected? You bet they do. They work very hard at it despite their protests that they shouldn't share in any financial cuts because they don't get a salary and can't really live on the $159 a day per diem during legislative sessions.
Admittedly Santa Fe is expensive. Legislative per diem rates are tied to federal measures of the cost of living in the area. But off-season rates aren't as high in Santa Fe and hoteliers are willing to give special legislative rates.
As for eating expense, a subsidized legislative snack bar is open all day serving very good food at reduced prices. In addition, there are a number of opportunities to be entertained by lobbyists or organizations over a meal.
Many lawmakers also say they lose a great amount of money from being off the job during legislative sessions and interim committee meetings. But something keeps them working very hard at getting reelected. Maybe it's just the desire to do good for one's fellow man.
On the positive side, New Mexicans are very fortunate to have one of the hardest working legislatures in the nation. Most states, in addition to paying their lawmakers a salary, also allow them to be in session for much of the year.
That means there's no hurry. None of them are as lazy as the U.S. House of Representatives that meets Tuesday morning through Thursday noon, but they certainly don't meet on weekends. National accounts of New Mexico's special session mentioned with astonishment that the session was starting on a Saturday.
Federal stimulus money is available to help balance this year's budget and provide jobs. But it won't be available next year unless the federal government goes deeper in the hole and authorizes more.
Some 2,000 road projects are underway nationally. Many of those are in New Mexico. That is very obvious to anyone driving about the state these days.
MON, 10-26-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-23 Easy Cuts Just About Gone

By JAY MILLER
Syndicated Columnist

SANTA FE -- This is a highly unusual special session. It might be over by the time you read this. But if it is, it will be because lawmakers gave up on solving the total problem.
The state is faced with its biggest deficit ever. Gov. Bill Richardson has complicated matters greatly by putting tax increases and public school classroom cuts off limits.
What's left is cuts of over 10 percent to the rest of the budget. Since people are by far the largest part of governmental budgets, it is almost impossible to make 10 percent cuts without cutting people.
Some people cuts do come to many lawmakers' minds immediately. Highest on that list is all those high-paid exempt employees Gov. Richardson has scattered throughout state government. Estimates of their numbers run as high as over 800, compared to less than 300 when Richardson took office.
Another pool of employees about whom few will shed a tear are mid-level administrators in public schools and higher education. At the public school level, and to some extent in higher education, many of those additional positions exist because of state and federal regulations.
Accountability requirements of the federal No Child Left Behind Act call for testing, reporting and tracking of students, which mean many pencil pushers to keep track of what is happening.
Then there are the state retirees who return to work and draw full pay plus retirement benefits. Lawmakers tried to get rid of those two years ago but the governor vetoed the measure.
Reductions in all these areas should be made but they won't even begin to solve a budget deficit of 12 percent.
Sen. Mary Kay Papen of Las Cruces has introduced a resolution urging lawmakers to voluntarily reduce their per diem allotments so the Legislature feels the pain also. Many outside the Legislature have suggested that action too. It should happen but it's also a drip in the bucket..
This is also the time for those in all branches of government to forego out of state trips. Again, it won't help much but it should be done.
That's most of the easy stuff. The rest is painful and many lawmakers don't want to face it. Remember, the Legislature already cut a half billion out of its budget last March.
One possibility being considered is doing the easy stuff now and saving the rest until the January 2010 regular session at which the governor can't impose as many limitations.
In reality, Gov. Richardson can't impose the limitations he has on this session. But since he nixed tax increases, Republicans and Democratic leaders aren't complaining.
That's a slippery slope. It establishes a precedent for future governors to do the same. Normally, conservative lawmakers would delight in rubbing the governor's face in it. But they're opting for expediency this time, saying they'll have to wait until January.
Sen. Cisco McSorley says don't trust those Republicans. They'll vote against tax increases in January too. He says he's never seen a Republican vote for a tax increase.
Cisco, your memory is fading just a bit. When you first came to the Legislature in 1985, a coalition, run by Republicans, had just taken over the Senate. The House already had a similar conservative coalition.
The bottom had fallen out of the oil, gas and minerals market two years earlier. It wasn't as bad as this time because financial markets weren't also in the tank. So less painful fixes had worked for two years.
But by 1985, painful fixes became a necessity. And Republicans were in control. What could they do?
Sen. Les Houston had become the Senate President Pro Tem. He chuckled ruefully at the irony of it all when he confided to me that what he termed the largest state tax increase ever was developed on his living room floor one Sunday afternoon early in the 1985 Legislature.
There are times that Republicans find it necessary to vote for tax increases.
FRI, 10-23-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-21 Getting Ahead of the Game

By JAY MILLER
Syndicated Columnist
SANTA FE -- It isn't snowing in Santa Fe yet but many in the Capital City seem to think next January's regular session of the 2010 Legislature has arrived.
For many weeks, Gov. Bill Richardson has been cautioning that the current special legislative session will be limited strictly to budget items and no consideration of tax matters.
Gov. Richardson made it even clearer in his opening day proclamation, saying legislation shall not include raising tax rates, reducing or eliminating tax credits, rebates, exemptions or deductions or imposing new taxes.
That's pretty clear. But dozens of bills have been introduced in both houses dealing with taxes. Some legislators argue that these restrictions prevent them from fulfilling their constitutional duty to balance the budget.
But since the restrictions are on tax increases, the Senate's conservative leadership is not making a fuss. That may mean a fairly quick end to this special session.
Senate Majority Leader Michael Sanchez, D-Belen, often differs with Gov. Richardson but Sanchez says he will take the governor at his word that he'll approve no tax legislation now but will entertain it at the session beginning in January.
Sanchez's support of the governor on this issue likely means there will be no impasse of the sorts that have stalemated several states for months in addressing their budget deficits. Sanchez says he expects to be voting for tax bills come next January.
So why are all these tax increase bills being introduced now? Many lawmakers have committed to support raising more revenue. On Saturday numerous education groups were at the Capitol, along with state employees, Medicaid recipients and social service organizations to encourage legislative support.
The tax bill sponsors know their efforts won't yield legislation this session but it puts them on record and starts the discussion for next January. And they won't hear as much static as their colleagues between now and then from parents worried about school programs being cut.
Shortly before lawmakers went into session Saturday afternoon, a coalition of teacher, administrator, school board and parent organizations released survey results showing overwhelming public support for not cutting school funding and strong majority support for increasing certain taxes and closing tax loopholes.
One tax item that has been declared germane to this session would require the state to release a tax expenditure report listing the hundreds of tax credits, exemptions and deductions in its tax code. It would show how much revenue the state is forgoing as a result of favorable tax treatments.
Estimates run as high as $5 billion. New Mexico is one of only nine states that don't produce such a report. We would be producing the report but Gov. Richardson vetoed a similar measure two years ago.
Richardson said the report would confuse the public. Those individuals and industries benefiting from favorable treatment would like the public to remain confused.
Also at the Capitol on Saturday were supporters of equal marriage rights for gays. They also knew their cause will not be heard until January but they want to be sure no one forgets about it.
And while they're at it, why not add a flourish? The group strung a wide gold ribbon all the way around the Roundhouse, held up by 150 volunteers. Where the ends met, a fake silver colored stone was positioned. Organizers have petitioned the Guinness Book of World Records to recognize it as the world's biggest engagement ring.
The number of gay rights supporters on the west steps of the Capitol easily outnumbered the representatives of education, state employees, Medicaid recipients, Tea Partiers and backers of Tom Mullins for Congress.
A rally, at the same location, on Friday of the previous week attracted a reported 1,500 state employees and teachers. Evidently it is easier to get people to give up a work day than a play day.
WED, 10-21-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-19 Catlett Reassures Oil Industry

By JAY MILLER
Syndicated Columnist
SANTA FE -- New Mexico Oil and Gas Association members gathered in Santa Fe two weeks ago for their annual convention.
Numbers were down, oil and gas prices and production were way down but keynote speaker, Dr. Lowell Catlett, delivered an upbeat message that brightened the day.
Economic downturns are common, he told the luncheon group. We've had 14 recessions during the last 80 years. These recessions provide a means for society to re-balance what they deem important.
Every recession leads to a spurt in new business starts and new technological adaptations. Get ready for a phenomenal growth in healthcare, energy and lifestyle markets, he said.
It was the phenomenal energy growth that conference goers liked to hear. Every American has a dream space, Catlett said, holding his long arms in a pyramid above his head. People afford what they want. This means demand will never go down.
For those willing to embrace the opportunities, the next decade will be successful beyond any in history, Catlett said.
No wonder Lowell Catlett is the most sought after speaker for corporate and association meetings in New Mexico. At least I run into him more often than any other speaker -- and never miss an opportunity to listen to him.
Catlett is a regents' professor and dean at New Mexico State University in Las Cruces. Years ago, before Garrey Carruthers became governor of New Mexico in 1987, Catlett and Carruthers were office mates in the NMSU department of agricultural economics.
It was when Carruthers became governor that Catlett's name started popping up everywhere. But he didn't need the governor's help to make a big impression on New Mexicans and the rest of the world.
Catlett is a futurist, whose knowledge of new technologies and their implications on the way we will live and work in the future makes for a thought-provoking and entertaining presentation.
He also brought a message of hope about the next generation of leaders. He noted that many of today's college students no longer are flocking to Mazatlan for spring break. They are staying closer to home and volunteering for charities such as Habitat for Humanity.
Rep. Joni Gutierrez, Catlett's wife, is a member of the state Legislature and often in the news.
The New Mexico Oil and Gas Association funds a scholarship at NMSU. The group's relationship with Catlett likely has something to do with the scholarship.
Oil and gas production in New Mexico is often a matter of controversy, especially for ranchers and environmentalists. To help correct any problems, the industry has instituted a good neighbor program aimed at respecting property rights, protecting livestock, communicating with landowners and providing remediation and restoration of damages.
The industry is important to New Mexico. Other than the gross receipts tax, the petroleum industry is the largest source of revenue to the state.
For every dollar drop in the price of a barrel of oil, the state loses about $8 million in annual revenue. For every 10-cent drop per thousand cubic feet of natural gas, the state loses about $12 million annually. Those price drops have much to do with our current special session.
In addition, the industry is the largest civilian employer in the state with over 2,300 jobs directly related to production, refining, processing, marketing, transportation and field services.
Ads opposing the energy bill currently in Congress began running on television and in newspapers about the time of the oil and gas convention. But there was no connection.
The ads are being placed by national organizations and are aimed at constituents of New Mexico Sen. Jeff Bingaman because he is chairman of the Senate Energy Committee, which will have a major say about the bill.
Instead of claiming "CO2 Is Green," a NMOGA panel discussed issues of sequestering carbon dioxide from the environment.
MON, 10-19-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-16 It Seems To Be Raining

By JAY MILLER
Syndicated Columnist
SANTA FE -- Any agreement between Gov. Bill Richardson and legislative leaders about how to plug the hole in the state budget will be a last minute event.
A few weeks ago, Gov. Richardson presented a plan involving mostly one-time fixes to the anticipated $670 million deficit in this year's budget.
On Monday of this week legislative financial leaders came back with three scenarios of how they would like to do it. All of them were long-term fixes. On Tuesday, the governor said try again and narrow it to one proposal.
As this is being written, lawmakers are working on a modification. But there still is a huge divide between the parties' short and long term solutions. The fixes implemented by the 2009 Legislature last March used up most of the short term cash plus made some modest cuts.
The solutions from this special session are likely to sweep the corners of any remaining ready cash plus begin some painful cuts. In January, expect a focus on increasing taxes in areas that were cut in our more prosperous years.
One slight glimmer of hope might remain before the taxman cometh for more. Gov. Richardson and his finance folks have concocted something called sponge bonds.
The concept is obscure enough that googling it yields nothing but references to the current New Mexico proposal. The reason may be that no state other than New Mexico has a severance tax permanent fund.
That kitty was created back in 1973 when New Mexico was riding even higher than it has been the last several years. Not only were oil and gas prices high, so were uranium, potash, molybdenum, copper and coal.
After a few years of giving dribbles back to taxpayers, lawmakers decided to create a second rainy day account in addition to our Land Grant Permanent Fund.
Into that fund, they channeled the severance taxes collected on everything being severed from our earth. Later they decided to divert some of the revenue going into the fund for capital outlay projects in every lawmaker's district.
And they decided to lock up the fund itself by requiring a constitutional amendment to get anything out. But that still left the stream of revenue coming in from severance taxes as fair game.
At this point, about 88 percent of it is being used to fund pork projects with severance tax bonds. As severance taxes come to the state, they are used to make payments on the bonds.
Since the amount of severance tax income cannot be precisely predicted, money is not borrowed to the full extent of income projections. Any leftover money than goes into the Severance Tax Permanent Fund to be locked up forever.
The governor's concept is to sponge up that leftover money before it goes into the permanent fund. Every time that happens, instead of letting it get away, that exact amount of money is borrowed from the state treasurer.
The following day, the leftover severance tax money is used to pay off the sponge bond. And thus, money headed for a permanent fund is magically converted into money that can be used for the ongoing expenses of government. It might be called money laundering under other circumstances.
If lawmakers authorize this to happen every time extra severance tax money dribbles in, sponge bonds become a recurring source of revenue until the Legislature deauthorizes them.
The idea is controversial but one could argue that it is raining and before touching our rainy day fund, maybe we should use the money headed for that fund first.
Actually if voters were given the choice of an increase in taxes or tapping some money in our $3.2 billion Severance Tax Permanent Fund, which do you think we'd choose?
And remember, we also have an $8 billion Land Grand Permanent Fund backing that up. New Mexico likely has more permanent funds per capita than any other state.
FRI, 10-16-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-14 Major Decisions for Special Session

By JAY MILLER
Syndicated Columnist
SANTA FE -- What will come from the special legislative session scheduled to start Saturday noon? It may be the state's most important special session ever.
Gov. Bill Richardson and lawmakers will have to plug a budget hole of some $700 million. That's a $700 million shortfall that has occurred since last March when the 2009 session ended. By August, it was up to $400 million. In September, it climbed to $550 million. And now it's October.
New Mexico runs behind the curve when it comes to anything economic. We were slow to go into the recession and will be slower than the nation to come out. That means we're still in a free fall.
Gov. Bill Richardson had hoped to use mostly short-term, one-time fixes during this special session but there's just not that many corners that can be swept.
There will be some pain that will come out of this session. Richardson wants to shield education from being hit. Legislative leaders say that will necessitate a 16 percent slash to state agencies.
Education is the top priority of the state and these people must decide where that line should be drawn.
During the last big economic downturn in the early '80s, Republican lawmakers tended to want to make education's slice of the pie bigger while Democrats wanted to make the pie bigger.
There seems to be general agreement among all parties not to get into tax law in order to make the pie bigger yet. One of the few agreements that has been reached is to attempt to stay away from furloughs or layoffs. Salary cuts, however, appear to be on the table for everyone.
As a school board member back when school budgets had to be cut previously, I'll warn everyone in a decision making capacity that cuts involving school children are about as controversial as anything gets.
Closing small schools that are losing enrollment is a way to save considerable money. That, of course, involves every student in the school -- and every parent. School board meetings overflowed. A recall petition was started against me for even suggesting the idea.
Cutting program offerings is also touchy. We looked at dropping music, art, physical education and/or non-revenue-producing sports competition.
There's no better way to get a band parents club organized that to suggest eliminating band. The same goes for chorus, art, theater, dance and every minor sport.
"Back to basics" was a popular phrase back then. Every parent group that made a presentation to our board listed the 3 Rs plus the course offering that group was supporting as being the basics.
Give our board credit. We were smart enough not to touch major high school sports. That seems to be one of the big fears right now. The only cuts likely are a tightening of expenses for travel, meals, equipment and maintenance.
Here's a tip to school districts. Invite your local legislators to attend school board meetings when budget cuts are being discussed. You want to be sure they get the full picture.
There's little telling what salary cuts for public employees will do. They might not cause as big an uproar at the time but political consequences at the next election are a possibility.
Public employee unions have sued over the one percent cut every public employee took beginning in July as a result of the Legislature transferring part of the retirement payment from public employers to employees.
What alternatives are there to all these cuts? Public employees have suggested rolling back tax cuts for the wealthy passed during Gov. Richardson's honeymoon back in 2003. And then there's that tax that out-of-state corporations aren't paying on New Mexico profits. Revenue from the aforementioned sources would about cover the shortfall.
One problem with tax increases is that they don't bring in revenue immediately and lawmakers need their cuts to go into effect the end of this month.
WED, 10-14-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-12 Santa Fe Gets More Culture

By JAY MILLER
Syndicated Columnist
SANTA FE -- Our capital city had more than its share of cultural experiences in the past week. For Santa Fe, that's a lot of cultural experience.
Featured, as usual, was the Spanish culture. Spain's Crown Prince Felipe de Borbon y Grecia and his wife, the Princess of Asturias Letizia Ortiz Rocasolano visited Santa Fe to help commemorate its 400th anniversary.
The Spanish king and queen also were invited to visit during the 16-month event. It is not yet known if they will make an appearance during that period but the prince and princess wowed the city.
Heir to the throne, the 6-foot 5-inch prince, a former member of Spain's Olympic sailing team, spoke beautiful English as he recounted his country's founding of the Royal City. The striking princess is a former CNN International reporter.
The rowdy Spanish press also came along for the trip, as it did for the visits of Spain's king and queen in 1987 and 1998. I dare say this visit garnered more coverage in Spain than it did in this country.
Prince Felipe and Maurice Bonal, chairman of the 400th anniversary committee, emphasized in their remarks the importance of reconciliation between the Spanish community and Native Americans.
Some of that already has begun. La Conquistadora, the blessed statue of the Virgin Mary, has been renamed Our Lady of Peace. The surrounding pueblos participate in annual Fiesta activities and they are participating in the 400th commemorations.
Lee Moquino of Santa Clara Pueblo was quoted in the Santa Fe New Mexican as saying, "It's bittersweet. We're celebrating 400 years of when the Spanish came and conquered our people and our land. We need to have that…ongoing relationship to reconcile, forgive and move forward."
Moquino added that when the prince and princess were told "Bienvenidos a su tierra," welcome to your land, I thought "Bienvenidos to mi tierra," welcome to my land."
The day before the royal visit, Gov. Bill Richardson welcomed the first lady of Mexico, Margarita Zavala de Calderon to Santa Fe. She was officially opening Ventanilla de Salud, window of health, an information booth at El Paisano grocery store in a heavily Mexican immigrant section of Santa Fe.
At the health window, Mexican and other Hispanic immigrants can obtain culturally relevant information about basic wellness and preventative health issues, as well as learn about low-cost clinics.
The information center is a project of the Mexican Consulate and operated by the University of New Mexico Cancer Center with the assistance of the state Department of Health and volunteers.
Santa Fe's community of Mexican immigrants is growing rapidly. They aren't all low wage workers. Many have an entrepreneurial spirit and operate small businesses.
Since early New Mexico spent 223 years under Spanish rule and only 25 years under Mexico following the Mexican Revolution, the Mexican culture has played a very minor role in Santa Fe. But that is changing.
Despite playing a significant role in the Wild West following the opening of the Santa Fe Trail in 1821, Santa Fe has not emphasized its Western culture.
A case in point occurred a few days earlier when a plaque was dedicated on a downtown building designating it as the location of the jail where Billy the Kid was held in 1880 awaiting trial in Mesilla for murder.
The Kid spent three months in that jail, the most secure in the territory. Much of the time he wrote letters, including the legendary pleas to Gov. Lew Wallace to keep his bargain to pardon Billy in return for testimony he already had rendered in another murder trial.
The location of that jail never has been researched by Santa Fe officials despite this city's enormous interest in tourism. As a result, more than one location has claimed to be the site. One has displayed a plaque for many years.
Now a second plaque has appeared. It is much closer to the location identified by the world's leading authority on Billy. But it still isn't right.
MON, 10-12-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-9 Cazsino May Be Closer For Tribe

By JAY MILLER
Syndicated Columnist
SANTA FE -- We may yet see an Indian Casino at Akela, between Deming and Las Cruces. The U.S. Interior Department has announced it is reviewing all policies and directives of the past administration.
Some of those policies restrict off-reservation Indian gaming and have been responsible for blocking any efforts in New Mexico to establish off-reservation casinos.
In 1998, the Fort Sill Apache Tribe purchased land at Akela in an area where the Chiricahua Apaches once roamed. Because Geronimo and his band were unwilling to give up their land and autonomy, the U.S. government removed them in the 1880s to Alabama, then Florida and then Oklahoma.
In 1913, four years after Geronimo's death, tribal members were released and given the choice of either staying or moving back to southern New Mexico. Those who stayed became the Fort Sill Apaches.
Allen Houser was the first Fort Sill Apache to be born free. He became one of the most celebrated Native American sculptors of the 20th century. His life-size sculpture "When Friends Meet" is located on the grounds of the New Mexico Capitol Building, near the northeast corner.
The sculpture was donated by his family, along with the rights to 20 ten-inch maquettes which were sold to raise funds for the Capitol Arts Foundation. Houser's sons, Bob and Philip Haozous, are both successful sculptors today. Houser died several years ago. His wife still lives in Santa Fe.
The Fort Sill Apaches operate a casino in Lawton, Oklahoma. They planned to open a casino at Akela also. Several years ago, they successfully made their case to the Department of the Interior to put the land in trust for them.
That should have made it possible for the tribe to put a casino on the property. But in July, National Indian Gaming Commission Chairman Philip Hogan ruled that the tribe couldn't have free use of its land because there had been no break in the government-to-government relations between the tribe and the United States.
The ruling is difficult to comprehend. The Chiricahua Apaches had no government during their 27 years in captivity. In 1914, they were organized as the Fort Sill Apaches, not the Chiricahua Apaches. That certainly sounds like a break in relations.
The tribe has appealed that decision and has asked for a hearing before the entire three-member commission. The tribe also contends that since Hogan is an appointee of the George Bush administration and is leaving the commission, he should not make such a significant decision.
It appears the Obama Interior Department review of the previous administration's policies and directives could help the tribe's position. But just in case, the tribe has filed suit in U.S. district court to force the commission to recognize the tribe's right to establish a casino at Akela.
The Apaches also bought television ads in the Albuquerque and Washington, D.C., markets asking President Barack Obama to keep the casino open.
Actually, the casino, which was only a small bingo operation, is now closed through an agreement reached early this week between the tribe and the National Indian Gaming Commission, pending the tribe's appeal. Since the parties are talking, that may mean the tribe is making progress.
Reopening the Akela operation would not be good news for the Bill Richardson administration. When the bingo parlor first opened in February 2008, Richardson dispatched state police to block access to the property. In April 2008, the tribe reopened on a limited basis but Richardson stayed out saying it was a federal issue.
Gov. Richardson has expressed his desire not to expand gambling any more in the state than already exists. But the state only has control over racinos. Its only say in Indian gaming is through the negotiations of compacts with the tribes.
New Mexico already has too much gambling but from the standpoint of equity, the former Chiricahua Apaches deserve their shot.
FRI, 10-09-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-7 What Graduation Rates Tell Us

By JAY MILLER
Syndicated Columnist
SANTA FE -- What was that big flap over dropout rates? First we were presented with a state Public Education Department report showing that New Mexico has a dismal 54 percent graduation rate.
Not long after, we received a revised report moving the figure up to 60 percent, still far short of the national average of 69 percent. That was accompanied by complaints from school districts that the state had totally messed up its original report and shouldn't have published such inaccurate information.
But here's the story as I understand it. The graduation rate statistics we're talking about are for the school term that ended a year ago last spring. School districts had a year to submit their data by August 3, 2009 to meet federal and state requirements.
The state compiled those figures and released them, explaining that they were preliminary but indicating that late changes could revise those figures only slightly. For many schools those changes were slight but for a few schools, they were huge.
Public Education Secretary Veronica Garcia says her department received 15,834 changes after the deadline. Almost all those changes sent graduation rates up. Albuquerque Public Schools went up 17 percentage points.
In fairness to school districts, however, it must be pointed out that graduation rates aren't as easy to compute as one might imagine. If no student ever moved or changed schools, tracking ninth graders through their senior year would be simple.
But in our mobile society, that doesn't happen. Small school districts usually have the most stability -- and the highest graduation rates, even in communities one might not expect.
In larger districts, however, students move around. Families relocate out of town, out of state or out of the country. There also are more choices of schools within those communities to which students often transfer.
Tracking those students through their transfers to be sure they haven't dropped out is difficult. In a school with 500 freshmen, it may take a year to track them all down. To demonstrate the problem, a recent editorial cartoon showed freshmen being fitted with electronic monitoring collars.
Albuquerque school Superintendent Winston Brooks has noted one group of "dropouts" that the state evidently doesn't measure. These are the 22 percent of his seniors who didn't graduate in four years but who are still in school.
He notes that if those students were eliminated from the dropout rate calculation, Albuquerque would have a rate higher than the national average.
Regardless of what the most accurate figures might be, the fact remains that New Mexico has a dropout problem. Gov. Bill Richardson has tried to attack it since his first year on the job.
Richardson's initial focus was the need for parents to encourage their children to stay in school and to work hard at graduating. I agree that parents are the key.
It is likely that all of you reading this column made a strong effort to encourage your family members through school. But I am told there are people who don't read this column. They are the problem. And it seems that nearly all attempts to reach them have failed.
In our society, personal responsibility has given way to entitlement attitudes. Those attitudes have become so ingrained and so many other priorities compete with education that far too many students don't value an education.
I have previously mentioned the efforts of some developing countries to build their climb to the top around education. It requires a more authoritarian approach than Americans are willing to accept.
But we should take a look at the efforts in China, India and Singapore to see if there are features we can borrow. Forty years ago, Singapore was so poor and illiterate its neighbors rejected overtures to join with them.
The tiny country decided the only way out was to adopt a national obsession with education. It's now one of the richest countries on earth.
WED, 10-07-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com

 

10-5 State Budget Fight Will Be Brutal

By JAY MILLER
Syndicated Columnist
SANTA FE -- Eliminate waste, fraud and abuse. How many times have we heard political candidates say that is the solution to balancing the state's budget?
Legislative leaders currently are looking for all of that waste, fraud and abuse they can find. There's bound to be plenty of it but it's not labeled that way.
The governor's hundreds of political appointees, hired outside the state personnel system and scattered in every executive agency, are an easy place to start.
Actually there are too many employees in most governmental agencies, political appointees or not. A hiring freeze and across-the-board cuts get at some of that. I've always felt state employees have far too many meetings. And they all need state cars to get to the meetings.
But not all parts of government are alike. The judicial branch of government has a lean structure. We certainly don't want to cut judges and they don't have big staffs.
Public schools are much the same. Teachers are the big chunk of their budgets. If they are to be cut, state laws that put maximum limits on class sizes will have to be raised.
Teachers of specialized classes, which broaden the curriculum, may be the first to go but they can't be cut in mid-semester without impacting graduation eligibility. And furloughing teachers presents problems.
In affluent areas, parent groups raise money for elementary schools by holding bake sales and sending kids door-to-door selling wrapping paper and candy. Those same schools sometimes require students to buy their share of duplicating paper and other school supplies. But that's not a solution for all schools.
When two state senators warned school superintendents of possible 10 percent cuts in their budgets, the biggest reactions seemed to concern the elimination of high school athletics. That's not likely to happen but anything that is not a required course is subject to elimination.
State revenue projection updates later this month will make it clearer how much will have to be cut. The last projections in August revealed a deficit in this year's budget of over $400 million. There are indications that may climb to $550 million in the October projections.
When the economic downturn began nationally, New Mexico was not as hard hit. But experience from past recessions tells us that New Mexico lags behind the curve, which means we're still a long way from hitting bottom.
If the October projections indicate we're $550 million in the hole on this year's budget of $5.5 billion, that's where the talk of 10 percent cuts emanates. And it is totally possible that revenue decreases for next fiscal year will be even worse.
How are the governor and legislature so far apart on fixing our deficit? Gov. Richardson's are short-term bandaids, depending on the economy improving next year. It is looking less and less as though that will happen.
We may have to cut another 10 percent next year. That will be very serious. The governor and Legislature seem agreed on no tax increases in this month's special session.
Changes in tax law are difficult. They must be correct, which means careful consideration. They likely won't be popular with a majority of voters and lobbyists for the groups affected will fight it with everything they have.
But there also are groups that will push for tax increases. They already are pointing out that tax cuts during the last seven years of the Richardson administration equal about what we are in the hole right now. And they haven't brought the new industry and economic well being that was promised.
Look for increasing pressure during the next several months from groups concerned about emotional issues such as eliminating high school athletics, music programs, art programs and increased dropout rates. Public employee unions and the myriad groups advocating for social concerns also will be putting the pressure on.
MON, 10-05-09

JAY MILLER, 3 La Tusa, Santa Fe, NM 87505
(ph) 982-2723, (fax) 984-0982, (e-mail) insidethecapitol@hotmail.com