Insider NM Politics

Insider New Mexico Politics

New Mexico politics are always interesting.   And especially with the change from the corrupt Richardson Democrat administration to the new Republican Governor-elect Susana Martinez.    One of her campaign themes is to clean up Santa Fe.    And based on what some of the Albuquerque, NM TV stations are running and stories we've heard out of Santa Fe in the last year of "Big Bill", it is a mess.     Add in the dramatic NM budget crunch (the shortfall was estimated at $300MM, but may actually be closer to $450MM) when the legislature gathers in January.    With the new Guv in town, less money means big changes.  

One of the best insider NM blogs is by Joe Monahan  http://www.joemonahansnewmexico.blogspot.com
This week he has been blogging on the changes in the NM House, as the Republicans picked up 8 seats and the Democrats cling to a narrow 37D to 33R majority.  While Speaker Lujan (R-Santa Fe) is still the Speaker nominee in January 2011, the numbers suggest that if all the R's and 3 Democrats formed a coalition, they could swing the vote away from Lujan as the Speaker.  Somewhere in the mix is empowered House Minority Leader Tom Taylor (R-Farmington), who has a much stronger hand with new Republican Governor and 8 new GOP members.  Plenty of blogger fogger.

Meanwhile, Lt. Governor John Sanchez will be in Farmington, NM right before Thanksgiving for part of the new Republican administration's "listening tour".  

(c) 2010, Jasper Welch, Four Corners Media, www.jasperwelch.org

NM Dems Ready to Raise Taxes

NM Dems Ready to Raise Taxes

According to the Rio Grande Foundation  http://riograndefoundation.org  tax collections in New Mexico have increased even through the income tax rates are going down.   According to Paul Gessing, “New Mexico is collecting more money from its personal income tax than ever before despite having reduced rates by more than 40 percent. In fact, in FY 2003, the year in which the first rate cut – from 8.2 percent to 7.7 percent – took effect, New Mexico’s personal income tax generated approximately $923 million. In FY 2008, the tax is expected to generate $1.18 billion, an increase of 28 percent in just five years. Over the same time period, FY 2003 to FY 2008, New Mexico’s overall tax revenues rose from just under $3.9 billion to $5.9 billion, an increase of more than 51 percent. So, while rate cuts slowed the growth of personal income tax revenues, economic growth made up for a significant percentage of this “lost” tax revenue.”  

 Here are the income tax rate reductions in New Mexico: 

Calendar Year  2002   2003   2004   2005   2006   2007   2008

Tax Rate         8.20% 7.70% 6.80% 5.70% 5.30% 5.30% 4.90%

But the Democrat legislators in Santa Fe are ready to raise taxes, despite the success of economic growth over the past 6 years in which state income tax revenues went up 28%, even though the NM income tax rate as cut from 8.2% to 4.9%.      

 

House Bill 346 is being proposed by Representative Mimi Sewart in response to the budget shortfall being experienced in New Mexico, primarily due the reduction in natural resource taxes (several taxes, oil/gas gross receipts, mining and coal production).     So if you are short on revenues, not it is time to raise NM income and gross receipts taxes?    

Here is the e-mail update from ACI (NM Chamber of Commerce):  HB-346 is being sponsored by Rep. Mimi Stewart and it will be heard by the House Tax & Revenue Committee on February 4, 2009 at 1:30 p.m. (or ½ hour after the floor adjourns) in Room 317.  This bill proposes the gross receipt tax rate be increased by .5%.  In addition the bill also proposes an increase in the personal income tax rate (PIT). The PIT would increase in tax year 2010 from 4.9 percent to 6 percent for married persons filing jointly with taxable income of at least $24,000 and for single persons with taxable income of at least $16,000.  The additional revenue would be earmarked for public education.  To track the bill: www.nmlegis.gov/lcs/BillFinder.aspx

This opposition by ACI is not only based on the increase in NM income and gross receipts taxes, but the lack of fiscal accountability for our NM public schools, as many schools do not have audits.  Beverlee McClure, CEO Association of Commerce & Industry 2.3.09

For current information on HB 346 (and all of the 2009 NM legislative session), log on to New Mexico Votes www.newmexicovotes.org   

Let see.  Democrats sponsoring a bill to raise taxes (not cut spending) to help fund education, in which many NM schools do not have audited financial statements (lack of financial accountability).   After 6 years of positive revenue growth (partially due to the Governor supported and Roundhouse supported income tax cuts), suddenly we are going to reverse this progress and attempt to raise taxes at exactly the wrong time?

If you can, a call to your NM legislator is in order!

New Mexico Political Blogs

New Mexico Political Blogs

Political news from Santa Fe, NM and the annual NM legislative session at the Roundhouse can be found on several blogs.   Here are the two “must reads” for those who are trying to keep track of what is going on in New Mexico statewide politics:

http://haussamen.blogspot.com

www.joemonahansnewmexico.blogspot.com

Another source of information on the state of NM budget and spending in Santa Fe can be found at the Rio Grande Foundation http://www.riograndefoundation.org    This NM think tank also has a new site to track bills at the Roundhouse that can be found on the web at http://www.newmexicovotes.org     In addition, the Rio Grande Foundation has links to other resources that allow voters, taxpayers and citizens of New Mexico to be better informed on state government.

© 2009, Jasper Welch, Four Corners Media   www.jasperwelch.org 

 

 

Pay to Play Politics: The Gov Richardson Un-Appointment

Pay to Play Politics: The Gov Richardson Un-Appointment

On Wednesday December 3, 2008 President Elect Barack Obama announced the appointment of New Mexico Governor Bill Richardson as the next Secretary of Commerce.   “As Governor of New Mexico, Bill showed how government can act as a partner to support our businesses, helping create 80,000 new jobs. And under his leadership, New Mexico saw the lowest unemployment rate in decades.” Barack Obama, Chicago, Illinois.    Other press coverage, spun up by the Legacy Media and the Obama transition machine waxed eloquently about Governor Richardson’s qualifications and political career.    So what really happened in New Mexico during six (6) years of one party rule (Democrat) with Governor Richardson at the helm?

            In an exchange of e-mail with Representative Tom Taylor, R-Farmington, who serves as the Minority Leader of the New Mexico House of Representatives, sheds a different light on the results of Governor Richardson’s term in New Mexico.  “They (the Legacy media) didn’t mention in the article that all those wonderful things he did for us (in New Mexico) can’t be afforded.  We have increased (by) 4770 permanent (state of NM) employees or (an increase of) 24% over the last 6 years.   This is going to be interesting (as to whether we can afford this large increase in NM government employees going forward).”  Representative Tom Taylor, R-Farmington, 12.3.08

            Fast-forward one month later to January 5, 2009, and the surprise announcement that Governor Richardson is withdrawing his name from consideration as the next US Department of Commerce Secretary.    What happened in the course of one month?     Or better yet, what has been happening in New Mexico at the Governor’s office over the last 6 years, in particular over the last Presidential election cycle?    Political sources in New Mexico have long held that the Governor was engaged in “pay to play” politics, a term that has received much more use during the on-going Governor Blagojevich corruption scandal unfolding in Illinois.   This light of national press attention on Illinois is proving to be uncomfortable for the Governor of New Mexico.    At issue with Bill Richardson, D-New Mexico, is campaign contributions to Richardson by CDR Financial and state of NM government “sole source/no bid” contracts with CDR Financial, how they were linked and what was expected as a result of the political money flow (from CDR to Richardson).  Since word of a US grand jury investigation leaked out in mid December, the Governor who is usually media savvy, hasn’t been talking.  This silence was broken on Monday, January 5^th during a 7-minute press conference in Santa Fe, NM.  The embattled Governor expressed disappointment in having to step aside, but also steadfastly refused to answer questions related to the CDR investigation. 

Behind the scenes, NM legislators and political operatives in New Mexico are scrambling to prepare for a rough 2009 legislative session, made more challenging with a lame duck Governor now unable to exit to Washington DC during a New Mexico budget crisis.  In the meantime, Lt Governor Diane Denish is engaged in a Governor transition process, predicated on the Guv being appointed as the new Secretary of Commerce (done in early December 2008, but undone in early January 2009).   Time will tell whether this “Denish transition team” effort is premature, but it appears to be on hold as a result of Governor Richardson withdrawing his name from consideration.  Stay tuned, as New Mexico politics at the Roundhouse have been turned upside down prior to an expected 10% shortfall in state revenues for FY 2009/2010.  As a result of the Governor unexpectedly staying in New Mexico, a tough NM legislative session on FY 2009/10 budget issues becomes even more unpredictable.

© 2008, Jasper Welch, Four Corners Media, www.jasperwelch.org