Friday, March 12, 2010

R's Prime House Targets For 2010 Revealed, Plus: Mayor Berry & This Lousy Economy; Does He Have A Fix? Plus: "Lonesome Dave;" Ex-Guv's New Book Out 

Dem Reps. Thomas, Rodefer & Giannini
State GOP operatives have their chalkboards out and are toting up which Democratic House seats are most vulnerable this election cycle. The Dems are in total control of the state House--45 D's to 25 R's--after picking up some seats in the 2008 Obama landslide. The R's think there will be a rubber band effect, with some districts that should never have gone D coming back to them in November.

The Dem seats insider R's think are most likely to flip are Karen Giannini's ABQ NE Heights seat and that of Rep. Ben Rodefer on the West side. But it gets dicier after that.

For example, Rep. Jack Thomas is in a swing Rio Rancho area seat, but he is a former Sandoval County Commissioner with good name ID. R's point out he only won by 278 votes in '08 and that his opponent is likely to be a the widow of a law enforcement officer who was shot and killed in the line of duty.

The Bill O'Neill ABQ NE Heights House seat is another on the R target list, but it won't be easy. Same for the Las Cruces area seats of Reps Jeff Steinborn and Nate Cote. There will need to be a big R trend to pick all of them off.

South of ABQ the R's will target Rep. Andrew Barreras. Here's the news on that:

Republican and small business owner, Tim Lardner declared his candidacy for New Mexico House of Representatives, District 7. Lardner is President of Belen based New Mexico Travertine Inc, and CEO of Santa Fe Marble, specializing in the mining and fabrication of stone and marble. Once elected, Lardner is committed to reigning in irresponsible government spending while working to cut taxes on our small businesses and families.


The conservative estimate is that the R's pick up at least two or three House seats this November. The 42 state Senate seats aren't up for election until 2012.

NOT A GOOD THING
Mayor Berry
The 8.9 percent ABQ metro January unemployment rate reported by the state Thursday may be the highest in the city's post WWII history in this government oriented economy.

The rate jumped from 8.5 percent in December and while there are seasonal factors involved, ABQ Mayor RJ Berry has to be increasingly concerned. He only took office December 1 and his honeymoon is still in progress, but soon these depressing stats will be owned by him as well as the political heartburn they represent.

We're now only a tenth of a percentage point away from the psychologically important 9 percent mark. What may keep us from getting there is that many folks simply stop looking for work or move away. It's not as if there's enough job creation to make up for the positions being lost.

And that's what is most worrisome. Where will the new jobs come from to replace the thousands being lost in the state's largest city? Many of them were in construction and
manufacturing. Then there's the hiring freeze at city hall and state government.

Berry's administration is already facing the prospect of the largest budget shortfall in the city's modern history--$54 million for the budget year that starts July 1. This jobless report tells us that economic activity is unlikely to pick up and generate the gross receipts taxes needed to put the city on a more even keel.

So while the new mayor mourns the continued losses in the job market, he faces the most unpleasant task of possibly adding to the hurt by being forced to layoff city workers, or at least cut their pay by making them stay home from work under a stern furlough plan.

There's nothing more that Berry would rather do than cut taxes for business and call it a jobs creation program. But he can't cut taxes because the city is broke. He and his economic planners need to think outside the box. Republican tax cutting orthodoxy is not going to do the trick. And while mayoral cheerleading for the economy is permitted, it will not substitute for real job creation.

We've suggested recently that ABQ might invest in being aggressive in attracting more federal interest in the city. Not that city fathers should throw the towel in on wooing major private employers, but it makes sense to recognize that the city's modern strength is owed to the large federal presence. As Martha Stewart would say--that's a good thing.

Berry is a Republican and the White House and the state's congressional delegation is all Democratic. That might make for some awkwardness, but when we saved Kirtland Air Force Base from being shuttered, we did it with Democrats and Republicans working together. Maybe it's time for that spirit again. This time to save our economic future.

OUR PREPRIMARY COVERAGE

We'll give up our weekend vices (the sacrifices we make!) and post a blog for you Saturday afternoon updating the results of the Democratic and Republican preprimary convention and we'll have additional analysis for you Monday. And how about a final prediction on that five way Dem race for lieutenant governor. It takes support of 20 percent of the delegates to get an official spot on the June 1 primary ballot. This Alligator thinks four of the five are going to pull it off:

My wife has been making lots of phone calls to Delegates across the State on behalf of her favorite candidate and based on those calls I would see the results for Lt. Governor as Brian Colon 27.48%, Gerald Ortiz y Pino 24.10%, Lawrence Rael 21.17%, Joe Campos 20.72% and Linda Lopez 6.53%.

Let's see how close that Gator comes. There should be some excitement at both party confabs.

LINING THEM UP

Santa Fe County Commissioner Harry Montoya, a Dem candidate for state land commissioner has been busy on the endorsement front. His campaign says:

These elected officials have endorsed Harry Montoya--State Representative Antonio “Moe” Maestas; Espanola Mayor-Elect Alice Lucero; Santa Fe County Commissioner Virginia Vigil; Hobbs City Commissioner Joe Calderon and Guadalupe County Treasurer Marcos Salas....

Also vying for the Dem nod for the land slot is southern Public Regulation Commissioner Sandy Jones, Santa Fe County Commissioner Mike Anaya and former land commissioner Ray Powell, Jr.

Wonder how they will all do at Saturday's preprimary convention?

CAPITOL CHATTER
Ida Jo & Dave Cargo
Capitol news correspondent Lorene Mills writes us from the Roundhouse:

Hi Joe, I loved your piece about 1980, Manuel Lujan and Bill Richardson. I am deeply grateful for your "institutional memory."

I thought you might enjoy my interview with former Governor Dave Cargo this Friday night at 10:30 p.m. on Channel 5. He discusses his new autobiography "Lonesome Dave," and even explains how he got that moniker. He tells wonderful stories about politics of yore--back in the 1960s. And of course, the more things change, the more they stay the same...

Thanks, Lorene. That Cargo interview is tonight--Mar. 12.

We've just started in on Dave's book--I pressed Dave and he coughed up an autographed copy. The book is available for purchase here.

What first struck me from "Lonesome Dave" were the photographs of Cargo's wife, Ida Jo. She was about 25 in 1966 when Cargo won the first of his two, two year terms. Cargo was 36 when he was sworn in as the youngest governor in state history. I imagine Ida Jo was our youngest first lady. I took a snapshot of one of the photos from the book so you could see for yourself what a striking appearance she made. The book version is more clear, so forgive the quality here.

The Cargos were quite the glamor couple of 1960's New Mexico, although media coverage was nothing like it was today and there's not much of a film record of those years. Ida Jo died of cancer when she was in her 50's.

Lorene Mills credits us for having "institutional memory." However, our memory doesn't stretch back to the Cargo years. When he became Guv we were 11 years old and had just started our first job as a caddy for six bucks a round at Pennsylvania's Elmhurst Country Club. But reading "Lonesome Dave" transports you to that time and place when a youthful governor and first lady led a young state in turbulent and passionate times. We'll have more on Cargo's book in the days ahead.

Thanks for sharing time with us this week.

Reporting to you from Albuquerque, I'm Joe Monahan.

(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Thursday, March 11, 2010

Hit Again: NM Jobless Rate At New High; Political Impact Weighed, Plus: An Ortiz y Pino Surprise? Also: Santa Fe Election Post-Mortem & Blogging Raton 

It's not over yet, not by a long shot. We’re still waiting for the New Mexican economy to hit bottom. The most politically sensitive indicator of the state's economic health has climbed yet again, with the US Labor Department now pegging the January jobless rate at 8.5 percent of the work force, a new Great Recession high and creating an even more turbulent backdrop for the embryonic 2010 campaigns now forming for statewide and congressional contests.

The feds say New Mexico had the misfortune of being the state that posted the largest jobless percentage rate increase in the USA in January, a 0.3 percent rise. While the economic boosters have been repeatedly saying that "it's not as bad here as elsewhere," the state is staying true to its long standing tradition of being among the last to catch a trend. In this case it is the recession trend that has ravaged the American nation for going on two years now and sent unemployment and under employment soaring.

The state will report its version of the jobless stats today, but it's clear by just reading the headlines (100 laid off from the Gardunos restaurant chain; mortgage delinquencies setting new highs and real estate values continuing to decline) that we are still in the teeth of this downturn.

All of this makes matters more urgent for the state's Democrats. They are now all holding their breath and awaiting Governor Richardson's forthcoming decision on the hyper-controversial partial reinstatement of the food tax.

THE IMPACT


That tax passed the recent special session of the Legislature as a budget solving measure, but now threatens to become the poster child for an out of step political class, unleashing a wrath of populist anger reminiscent of 1994 and turning over the Governor's office and perhaps a congressional seat or two to the long-suffering Republicans.

Richardson has until the 24th of this month to make up his mind. He says he is having trouble because he doesn't know if he can veto the food tax without vetoing the entire $230 million plus tax increase package approved by the session. It could mean having to call another special session, with all the political risk that entails.

But vox populi isn't interested in what Bill's lawyers are saying. He blames the Senate for passing it, but Richardson and conservative Senate Dems could have supported an income tax surcharge, an increase in the capital gains rate or even a slight boost in the top income tax rate. He didn't and a food tax ended up on his desk.

Is it hyperbole to declare that the situation for the Dems is now bordering on the dire? That the GOP Guv field is unknown and inexperienced seems to be providing the only succor to the party in the power.

Richardson has raised expectations for a veto by saying he "hates" the food tax. If he doesn't come through with a veto and show that his sympathies and those of his majority party are with the thousands of New Mexicans out of work and the thousands more struggling to make ends meet, the Republicans may have an historic opportunity to take power in Santa Fe.

THE COVERAGE

Again it is TV news with the human angle on this generation's big economic story, showing the faces and telling the stories behind the numbers. They're interviewing the construction workers and butchers who are trying to raise families but are caught in this downturn. Where are the stories of these people in the dead-tree press?

ORTIZ Y PINO SURPRISE?

Lots of feedback to the Alligator handicapping here Wednesday of Saturday's Dem preprimary convention. Several operatives say they now see movement toward ABQ State Senator Jerry Ortiz y Pino in that five way race for Lt. Governor. They say his strength may be underestimated and that they wouldn't be surprised if he gets over the 20 percent of the delegates needed to win an official spot on the June 1st primary ballot.

Ortiz y Pino had good showings at several county conventions that send delegates to the preprimary, including Bernalillo and Rio Arriba counties. He is the most liberal of the light Guv hopefuls and liberals traditionally participate at a high level in grassroots activities like the preprimary. But Ortiz y Pino is taking hits from his own fan club for his down the line support of the reinstatement of the dreaded food tax.

If Ortiz y Pino can pull off a surprise Saturday, the next question will be whether he can raise the money to compete in the race. So far, his fundraising has lagged far behind that of Brian Colon and Lawrence Rael.

SALAZAR LETTER GOES PUBLIC


That resignation letter from former Bureau of Elections director AJ Salazar accusing Secretary of State Mary Herrera of running a "crooked" operation is posted in all its gory detail, courtesy of the Rio Grande Sun. Salazar resigned. Herrera denies his charges and the matter has landed in the lap of the attorney general. Sounds like New Mexico politicos is chugging along as usual. Mary doesn't have a Dem primary foe.

SANTA FE POST-MORTEM
Asenath Kepler
Defeated Santa Fe mayoral candidate Asenath Kepler, a former city attorney and city manager there, writes to us in the aftermath of her 58% to 34% loss to Mayor David Coss (Miguel Chavez received 8 percent). She doesn't seem ready to retire from the political scene:

Now that the dust has settled from the mayoral election, I have a couple of thoughts to share with you.

We ran an honorable, issue-oriented, grassroots campaign. Our committee was a broad political and socio-economic cross-section of Santa Fe, and we tried to get everyone in “the Big Tent.” Despite being outspent by over $100,000, we took about 34% of the vote...We also changed the dialogue up here, and inspired many to demand that local government be more transparent...


As David Gergen said, “A leader’s role is to raise people’s aspirations for what they can become and to release their energies so they will try to get there.” That was what our campaign was all about, and hopefully will be again some day.


Take care, and have fun as we head into “high” political season!


Kepler focused her campaign on the economy and Santa Fe's severe challenges in that regard. She could not pin the blame on Mayor Coss who was given a big vote of confidence and gets congratulations.

The mayoral campaign did seem to accelerate acceptance of the theory that the old paradigm of ever increasing tourism and housing prices is antiquated. In that sense Kepler's losing campaign helped Santa Fe. It may even help Mayor Coss as he again turns his attention to the city's pressing economic concerns.

BLOGGING RATON

Sharon Neiderman writes us from Raton that she is now blogging under the title "Embracing the North" and is tracking the comings and goings of the politicos in Colfax County.

Sharon is a writer and journalist of long standing here, and in the past has specialized in cuisine, travel, history, women’s issues and spirituality. Her latest book project is: "Shrines and Signs: Spiritual Journeys Across New Mexico."

She moved to Raton, her husband's hometown, from ABQ about a year and a half ago. We've asked her to keep her eye on that planned racino for Raton that is having so much trouble getting up and running.

WAS THAT THE REASON?

We kindled some memories for reader Charles Sullivan when we blogged Wednesday of that 1980 US House race between Bill Richardson and Republican incumbent Manuel Lujan:

My recollection is that Richardson lost to Lujan by only about 5,000 votes. I think that was the night that national TV political pundits projected at about 7:00 PM Eastern time that Reagan was going to win big. As a result, thousands of Dems in the western US decided not to go to the polls for late voting. That may have been the difference in the Lujan-Richardson election.

That's how I recall it as well, Charles. Exit polling spread like wild fire in the early afternoon showing Jimmy Carter would lose. Out here in the Mountain West it meant some folks stayed home. Whether it was the deciding factor in the Lujan-Richardson race is hidden in the mists of history...

This is the home of New Mexico politics. Email your news and comments.

(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Wednesday, March 10, 2010

Alligators Handicap Preprimary Conventions: Who Will Survive? Who Will Crumble? Plus: Alan Who? Take On New Congress Candidate, And: The Year Was 1980 

The Horse Race
Alligator handicapping is in full swing as Saturday's preprimary conventions draw ever closer. Everyone wonders who will snare the minimum 20 percent of the delegates to win an official spot on the June 1st primary ballot. Not reaching that mark has always meant the death knell is sounded for a candidacy. A contender can still get on the ballot without the 20 percent by filing additional petition signatures, but support and money dries up when you fail to cross the 20 percent benchmark.

So who will survive and who will crumble?

The hottest show in town (or at least in Pojoaque) where some 2,160 Dems will gather Saturday at the Buffalo Thunder Resort is the five way race for lieutenant governor. Here's the first round of handicapping from a veteran Dem operative turned Alligator. He thinks three of the five will make the cut:

Here's my two cents after talking to some county chairs and other party folks: Brian Colon--30.5%; Lawrence Rael--22%; Joe Campos--21.5%; Jerry Ortiz y Pino--18%; Linda Lopez--8%

The big surprise to me will be if Rael or Campos don't get to 20%, but I also assume they'll both collect enough signatures to get on the ballot either way. Anything north of 30 percent in a five way field is good for Colon.

Again, it's true that Rael and Campos can get on the ballot without the 20 percent, but if they don't reach that mark their candidacies may be done. No one has ever gone on to win the primary election without getting 20 percent at the preprimary.

CRYSTAL BALLING THE R'S


And how about that other five way race that has the politicos enthralled? It's the match for the GOP Guv nomination featuring Pete Domenici Jr., Allen Weh, Doug Turner, Susana Martinez and Janice Arnold-Jones. Here's how another of our Alligators is making book on that preprimary face-off:

Weh, Domenici Jr. and Martinez all get over 20 percent--hard to imagine any don’t. The question is: If Weh wins the most delegates and has the most money (he won’t release it so who knows), does he have a case to make that he’s the front runner or at least co-front runner?

If that NMSU poll is right, Pete Jr. is at 29%, which means the name alone won’t be enough. Without serious money and an organization, he’ll sit idly at 29%. Meanwhile, the candidate with the money and organization (Weh?) should expect to grow. Agree?

And if Martinez can’t shock everyone with a convention win, does she remain viable? She hasn’t raised much money, doesn’t have a real organization to speak of and 90% of New Mexicans don’t know who she is...

Weh sharing front runner status with Domenici if he scores first place at the preprimary as expected? You won't get much of an argument out of us.

Allen's hard-right positions combined with his personal wealth and the fact that the state GOP is dominated by Anglo men all stand to make him a formidable challenger.

Domenici Jr. has the marquee name, but he has been unable to make his nomination anything close to a foregone conclusion. He also really needs to get that 20 percent when the some 450 R delegates meet at the ABQ Hilton. If not, Weh will have an even better shot at the prize.

As for Martinez, she doesn't need to win the preprimary. That onus is on former party chairman Weh. But she needs a solid showing if she is going to raise any money to compete against Weh and Domenici in April and May. She has time, but she is up against longer odds since Pete Jr. tossed his hat into the ring.

Turner and Arnold-Jones are underdogs, but in a five way shoot-out they still have a shot at the 20 percent.

A CERTAIN WIN

There's not much certainty in this volatile election year, but we don't need to shine our crystal ball to know that Lt. Governor Diane Denish will have reason to celebrate Saturday night. And she will.

Di will host a party following the Democratic preprimary convention at Buffalo Thunder where she will be awarded the only Dem spot on the June 1 primary ballot for the office of Governor as she is unopposed for the nomination. From the email:

Lt. Gov. Diane Denish wants to invite delegates, alternates and other Democrats to a Victory Rally, Saturday night at the Buffalo Thunder Resort, March 13th at 7:00 pm. Entertainment will be free and provided by Mariachi Tenampa and the king of northern New Mexico Music, Tobias Rene!

Hey, wonder if Big Bill will be there with Di after their recent spat over the state losing out on a big federal education grant. Maybe, but they probably won't be doing any slow dancing when Tobias plays a ranchera waltz.

Denish also came with this news of a preprimary rally Thursday, March 11 at 6 PM at the Wesst Enterprise Center, 609 Broadway Blvd. NE Albuquerque. She said:

There's a reason we're gathering at the Wesst Enterprise Center--it's a small business incubator, where New Mexico entrepreneurs are launching their own small businesses and growing them. I felt there was no better place to celebrate the new way forward for New Mexico.

Sounds good, Di. Throw in some tax-free food and we'll make it a date.

THE ECON BEAT

The rate of home foreclosures in the ABQ metro is startling, at least when seen through the lens of history. This has been a very stable market--until now.

Have you flipped through the back pages of the newspaper lately and seen the dozens of foreclosure listings and the times of the various auctions? It is staggering. And then there are the thousands of homeowners who are delinquent on their mortgages and risk going into foreclosure. From the NM Biz Weekly:

The rate of foreclosures in Albuquerque increased substantially in January, rising to 2.40 percent, compared with 1.36 percent in January 2009, according to First American CoreLogic.

...Foreclosure activity in Albuquerque is 0.79 percentage points lower than the national foreclosure rate, which was 3.19 percent for January 2010. Albuquerque’s mortgage delinquency rate has increased, as 6.33 percent of mortgage loans were 90 days or more delinquent, compared with 3.44 percent for the same period last year, an increase of 2.90 percentage points.


The November election is about eight months away, but with stats like these it's hard to see how the state of the economy won't remain the supreme issue on the campaign trail.

ALAN WHO?

Alan Woodruff recently began advertising on the blog, but what party banner is he running under? Woodruff says he will seek the ABQ congressional seat currently held by Dem Martin Heinrich as a Green Party hopeful:

Extremism and political partisanship is destroying the country--and the Republicans and Democrats are equally to blame. The voters are angry, and with good reason. But this is not a time for extremism. This is a time for moderation and rational debate.

I’m running for Congress as a “Green” because the Green Party is the only party that puts the public interest ahead of party politics. The first principle of the Green Party is “Grassroots Democracy,” and that is what my campaign is about....

Woodruff is an attorney who holds a a doctorate in administration from Harvard. He is the founder and CEO of Gordian Securities, Inc., a NASD registered broker-dealer.

Woodruff may be running as a Green, but his platform is much more Libertarian than liberal. For example, on drug policy, he says:

Anything that grows naturally, and all of its derivatives, should be legalized—and its sale regulated and taxed.

And on abortion:

Abortion is a matter of personal choice. Abortion rights are not a constitutionally proper subject for federal action.

Unlike traditional Green Party candidates who have been a headache for Democrats, Woodruff, who warns against government "micro-managing" the economy, may pull more or as many votes from Republican Jon Barela as he does from Heinrich--if he secures a spot on the ballot. We'll keep you posted.

THE YEAR WAS 1980...
Young Bill & Lujan
And we were a staffer for then Rep. Manuel Lujan (R-NM). It was the middle of the election year and we brought in Rep. Ed Roybal, one of the founders of the Congressional Hispanic Caucus, to hold a hearing in the ABQ Barelas neighborhood on senior needs. Roybal was a Democrat who represented Los Angeles in the House, but he was born in ABQ.

An ABQ native and a Hispanic Democrat to boot in an overwhelmingly Dem neighborhood in a majority Dem US House district. A nice combo for our Republican boss, we thought, for the 10 p.m. news that night.

But it was only a few minutes after the congressional panel gathered at a senior citizen center in the ABQ Barelas neighborhood when in rushes Bill Richardson, Manuel's election opponent. Richardson crashed the gate, asking fellow Dem Roybal why he was not able to participate and generally causing a stir among the attendees. Of course, the TV cameras loved it and picked up the conflict. Bill scored major news coverage that night and our "perfect" PR plan had been sent into a tail spin by Richardson's perfect timing.

Manuel went on to beat Bill in 1980 by a razor thin margin, but that boisterous hearing was the moment that we first realized that Richardson, then only 32 and who would go on to become a congressman, cabinet secretary, UN ambassador and governor, was not to be denied.

That's the way it was, and I was there.

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(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Tuesday, March 09, 2010

Economy Watch: Lab Funding Outlook Improves, Plus: GOP Lt. Gov Hopeful Loans Himself $100K, And: 1994 Redux; The Race For Guv Then 

VP Biden
You can give some of the thanks to Vice-President Joe Biden for the improved financial fortunes of New Mexico's two national nuclear weapons labs. So says ABQ US Rep. Martin Heinrich who tells us he sees budget growth coming for Sandia Labs after several relatively flat years. That's a big deal for the state's largest city as Sandia's budget is $2.2 billion annually. The two labs employ about 20,000 New Mexicans.

Heinrich's optimism doesn't mean we will see the whopping 22 percent budget increase for Los Alamos and the 14 percent increase for Sandia that the Obama administration is recommending, but it does allay fears that there will be downsizing of the facilities. Congress will have the final word and a much smaller increase would not be unusual.

Heinrich, a member of the House Armed Services Committee, said "Biden gets it" when it comes to the labs. A recent nuclear policy speech by the Veep supports that narrative:

...The spread of nuclear weapons is the greatest threat facing our country. That is why we are working both to stop their proliferation and eventually to eliminate them. Until that day comes, though, we will do everything necessary to maintain our arsenal.

At the vanguard of this effort...are our nuclear weapons laboratories, national treasures that deserve our support. Their invaluable contributions range from building the world’s fastest supercomputers, to developing cleaner fuels, to surveying the heavens with robotic telescopes.


Unfortunately, during the last decade, our nuclear complex and experts were neglected and underfunde
d.

Tight budgets forced more than 2,000 employees of Los Alamos and Lawrence Livermore from their jobs between 2006 and 2008, including highly-skilled scientists...

Last December Sandia announced 100 layoffs, mostly among highly skilled machinists. The federal budget year begins October 1 and that's when any increased funding would kick in.

The ABQ metro is being slammed by a generations-high jobless rate (the official rate is near 9 percent) and the city government faces a record budget shortfall. If Heinrich has it right, at least one leg of the area's economic stool is not going to be chopped off.

THE PIVOT


Heinrich, seeking his second term this year, is pivoting toward the jobs issue after a year of the health care debate. He held a jobs fair in the city Monday, bringing the unemployed together with prospective employers. Republican Jon Barela is Heinrich's challenger.

THE SCENE

We ran into Heinrich the other day while having lunch with a friend at The Grove, a daytime eatery On Central just east of downtown. It's good. Most surprising was the robust cup of coffee. We thought Starbucks had a monopoly on that.

The scene is urban professional and the ambiance is lots of natural light.

Mayor Berry says the winning ways of the University of New Mexico basketball Lobos is putting ABQ residents in a jollier mood. He even says they are going out to dinner more. We don't know about that, but this is New Mexico Restaurant Week and there are quite a few specials available.

SHOWING THE MONEY
Brian Moore
GOP Light Guv hopeful Brian Moore has come with a $100,000 personal loan to his campaign, money he needs as he is up against John Sanchez, a wealthy ABQ businessman who can self-finance his effort. Also in the race are ABQ state Senator Kent Cravens and Santa Fe doctor J.R. Damron.

Moore became the latest politico to post his donations on his Web site, even though the next state disclosure report isn't due until April 12. Moore, however, did not post his expenditures. Aside from the 100k he gave himself, Moore, a grocery store owner and former Clayton area state rep, raised another $18,000.

Candidates have been more willing to early release their contributions in the wake of numerous state finance scandals. Maybe the Secretary of State should make available space on her Web site for voluntary disclosure to encourage more early reporting?

This Saturday's GOP preprimary convention will help tell the tale on the GOP race for #2. A candidate must score 20 percent of the delegates to get an official spot on the June 1 primary ballot. Moore, Sanchez and Cravens are seen as most likely making that mark.


LINCOLN DINNER


NM R's will have their annual Lincoln Day Dinner the evening of the preprimary where Rep. Pete Sessions, chairman of the National Republican Congressional Committee, will give the keynote.

Sessions is hoping to take back the southern congressional seat from Dem Harry Teague. He also harbors hopes for Republican Jon Barela in the ABQ district held by Martin Heinrich. However, Sessions and the R's may not be able to free up enough money to make the ABQ race competitive.

Both the preprimary convention and the Lincoln dinner will be held at the ABQ Hilton this Saturday.
State Dems will also have their preprimary this Saturday. They will meet at the Buffalo Thunder Resort & Casino at Pojoaque.

1994 REDUX
Gary Johnson
Every time--and we mean every time---we write about the big 1994 race for Governor between Republican Gary Johnson and Dem Bruce King and in which Johnson triumphed, we get email taking exception.

The latest round is over the gasoline tax and how Johnson and the R's used it as a rallying cry to defeat incumbent King. We didn't say it was the only reason for the King ouster, but it was a major element. With that said, we make room for reader Norm to vent over this bit of history:

...The decisive factor in 1994 was the rage of many Hispanic Dems at Bruce King's primary win over (Lt. Governor) Casey Luna, supposedly a result of a deal with Jim Baca to enter the race and siphon Hispanic votes away from Luna (a deal which I don't believe existed, but many did at the time).

It's certainly true that there was a national trend to the Republicans in 1994, but that didn't keep Jeff Bingaman from winning. Given that many Republicans were unhappy about Gary Johnson's primary win that year, it's hard to see how Luna wouldn't have beaten him, gas tax or not.

Casey Luna beating Johnson in '94? Hold the email, but we don't think so. We do think the Luna challenge to King was an important cause for the King loss, but not decisive.

Today's political climate is similar to 1994 when the R's took the Guv's chair here and the Congress nationally. There is a significant difference--the electorate seems even more dismayed and angered than during that epic year in state political history.

This is the home of New Mexico politics. Email your news and comments.


(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Monday, March 08, 2010

Di Launches "Operation Separation;" She Disses Bill & He Disses Back, Plus: Taxes & Campaign '10: The Dems Struggle, And: Capturing The NM Zeitgeist 

Di & Bill--Happier Times
Diane Denish's Operation Separation is off the launch pad and not a moment too soon for jittery Dems. The Light Guv began what will be a long and arduous effort to distance herself from the Governor she has served under for eight years by sharply attacking a state application for federal education funds that was found wanting and rejected. She called the state effort “lackluster” and “inexcusable.” Big Bill fired back that Di’s comments were “inappropriate, misinformed and unproductive."

Game On.

It's the first major public disagreement of Campaign 2010 between the state's #1 and #2 and earned a banner headline with photos in Saturday's fish wrapper. And it came only days after a devastating poll for the Governor, showing his approval rating plunging to a record low of 28%. Even if the accuracy of the poll from Public Policy Polling in DC is questioned, you can add ten points to Bill's numbers and he is still short of 40%.

This is adding urgency to the conversation when you talk with top Democrats about the governor's race. They say Denish not only needs to separate herself from Richardson, but also from last week's special legislative session that may be shaping up as politically disastrous for the state's majority party. Over $230 million in tax increases were approved, including the loathed and anti-populist food tax.

Denish's supporters point to her earlier statements rejecting taxes on "working families" but the political professionals retort that she has yet to express her views on the special session tax increases.

One top elected Dem told us he would have advised Denish to have conducted a news conference immediately after the conclusion of the special session, condemning the budget agreement, urging the Governor to veto the budget package and to call the lawmakers back.

That would be a bold move when the mood in the Denish camp still seems tentative as they continue to take the temperature of an ultra-moody (and angry) electorate. It is a delicate and dangerous balancing act.

But Operation Separation is going to be a lengthy, eight month ordeal. We suspect by the time it's over, Di will be disagreeing with Bill about everything from that education grant to whether you should pour red or green chile over your enchiladas.

CONSPIRACY WATCH

To the emailers who say Di and Bill will conspire over Operation Separation by consulting one another on which topics she will use to drive a wedge between the two, you have our blessing if not our belief.

THE GOP BEAT

Those who would not only like to see Bill and Di divided, but the Dems driven out of the Guv's office all together, are busy preparing for this weekend's GOP preprimary convention (The Dems also have theirs this Saturday). Three of the five GOP hopefuls are now on the radio airwaves--Allen Weh, Doug Turner and Janice Arnold-Jones.

Only about 450 delegates will be at the GOP preprimary, but the radio is inexpensive and gives the candidates a profile among the delegates before they cast their votes Saturday to determine who will get an official spot on the June 1 primary ballot.

¡VIVA LA REVOLUCION!

Now back to the revolution. The New Mexican says of the food tax fiasco:

The governor should veto the food tax. He'd be doing a favor to our state representatives, all of whose 70 seats are up for re-election this year. Let 'em return to Santa Fe — to their senses, too — and impose some less-unpopular taxes.

Veteran Las Cruces newsman Walt Rubel came with this:

It may require additional spending cuts, but Richardson would do New Mexico families a favor by vetoing the food tax.

And Attorney General Gary King, facing a re-election challenge from Clovis area District Attorney Matt Chandler, has donned his jogging suit and is running fast and hard against the food tax. Tax booze, not food, argues the AG:

I don't see alcohol that's something that's necessary to survive, and that's why we talk about these as ‘sin taxes’ because they are taxes on products that people want to consume, but don't have to consume.”

You wouldn't think a food tax would be an issue in a race for attorney general. That it is gives you an idea of what's going on out there.

And the attorney general's remarks are especially poignant coming as they do in the wake of Friday night's drunken slaughter of two Native American sisters on Santa Fe's Cerrillos Road. The man arrested has three previous DWI convictions. But Santa Fe worked overtime to discourage Tortilla abuse?

DEEPER THINKING

Let's delve deeper into the politics of the food tax. An insider writes:

Both Senator Sharer (R-San Juan) and Rep. Larranaga (R-ABQ) offered floor amendments in both chambers stripping the food tax from the larger tax package and got roll call votes. It wasn't totally party line voting. For example, Senator McSorley (D-ABQ) and Rep Kiki Saavedra (D-Bernalillo) voted with the Republicans to take the food tax out of the bill as well as five other House Democrats--Reps. Rodefer, Giannini, Madalena, Stapleton and Steinborn)...

The vote of Saavedra, chairman of the House Appropriations Committee, is noteworthy. He has been on the whisper list as possibly drawing a progressive Dem primary opponent. None has materialized and Saavedra's vote is seen as keeping any prospective Dem foe at bay. The nomination is the game for him. His district is heavy Dem and the R's won't have much of a shot in November.

For freshman ABQ area Reps. Rodefer and Giannini the thumbs down on the food tax was a clear play against their Republican foes in November. Neither should draw Dem primary challenges, but their districts were traditional R areas until the Obama wave hit Bernalillo County in 2008. The two newcomers are seen as the most likely to lose their seats to the GOP this year.

Jeff Steinborn of Las Cruces has some seniority in his swing district--he is going for his third term--but the R's keep coming at him with good opponents. His vote against the food tax is aimed at fending off his November GOP rival.

Richardson told TV news he "hates" the partial reinstatement of the food tax. But will he do something other than gnash his teeth, like cast a veto?

Filing date for the legislative seats is March 16. All 70 House lawmakers are up for election and we will know then who they face in both the June primary and the November election.

THAT OTHER TAX

The R's are sure to hit hard on another tax hike the Dems approved in the special session. It requires that a taxpayer who itemizes his deductions add back the state income tax that is deductible for federal tax purposes before computing tax on that income for NM.

This was intended to get more taxes from high-income earners, not just the middle and lower classes who are going to take more pain than the wealthy from the food tax increase and a boost of an eighth of a cent in the overall gross receipts tax. Experts weighing in here Friday agreed the well-off would take the brunt of the hit from the deduction elimination, but many thousands of New Mexicans who don't have high-incomes will also be paying more.

A reader emails an example that could get the GOP in front of middle class voters who normally shun anything with an "R" in it:

The fundamental flaw with taxing the tax is that very often people itemize their tax returns because they have high medical expenses versus their income and also have a high percentage of interest payments on their mortgage (basically anyone who's mortgage is ten years or newer) plus property tax. Neither one of those means you have lots of money. In fact, their symptomatic of the middle class.

New Mexico to become fiscally sound needs to break away from our unique reliance on the gross receipts tax. It's a bad mechanism especially when the economy is off, which it will be for a while. Where are the guts to be honest about the need to find a better way?

Guts? Find a better way? Not until Santa Fe stops putting up funny numbers and calling them realistic revenue projections. And not until Santa Fe recognizes that the New Mexico economic era of soaring energy revenues, giddy housing prices and go-go consumer spending is not going to soon return. But who wants to leave the party to go to a funeral?

THE ZEITGEIST

We've been searching for the phrase that sums up New Mexico's current political zeitgeist. We thought we had it the other day while driving, but Frank came on our XM belting out this tune and we lost the thought. But then we stumbled upon it while scanning the editorial pages of the Ruidoso News and their take on the recent village election. It's "independent populism:"

When Mayor-Elect Ray Alborn explicitly opposed a hike in the gross receipts tax to subsidize the racino at Ruidoso Downs, he channeled taxpayer concern over the notion of "corporate welfare." This is not a season for politics as usual. By taking a stand - one that he figured might doom his chances - Alborn resonated among voters as an independent populist who speaks his mind.

Who are the "independent populists" running for statewide office this year?

This is the home of New Mexico politics. Email your news and comments.

(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Friday, March 05, 2010

Food Tax: Can It Undo Dems? Special Session Aftermath Analyzed, Plus: More On Santa Fe's Tax Plans For You 

In 1994 it was a six cents a gallon tax on gasoline that became the rallying cry for a disaffected electorate and a marginalized Republican Party. They had enough punch to throw Democrat Bruce King out of the Governor's office. Fast forward to 2010 and history could repeat. The two percent tax on food approved in the Special Session of the NM Legislature that concluded Thursday has all the ingredients to spark yet another voter revolt and perhaps again help deliver the Governor's office to the Republicans. (The AP wrap on the special is here.)

Every political consultant worth his reel of 30 second TV spots warned that the food tax is lightning in a bottle, and coming in a year when populism is rising and incumbents of every stripe are ripe for tar and feathering, it could very well tip the political balance come November.

Big Bill can hear the footsteps if not yet see the pitchforks of the hungry crowds. He said upon conclusion of the four day session:

I deeply regret that revenue increases became an option. I am especially concerned that the Senate insisted on including a food tax, which is regressive and hurts working New Mexico

Richardson has 20 days to decide whether to veto the food tax, but he may be boxed in. It would raise over $60 million to help put in balance the budget for the year that starts July 1.

SAY WHAT DI?

Lt. Governor Diane Denish has said she is against the partial reinstatement of the tax on food, but as she did when the regular session of the Legislature concluded, she issued a statement about ethics, not the economy, when the special session ended. She said she was having a news conference to sign a "sunshine" bill into law. Not a peep about the food tax and whether she will urge the Guv to veto it.

But ignoring the elephant in the room has never made it go away and Denish and the Democrats are now not only exposed on the ethics issue, but ready to be had on the issue that will ultimately decide the Guv race--the economy.

Legislators made a tepid move toward sharing the budget pain with the highest wage earners in the state (who, by the way, will mostly be voting Republican) but it doesn't appear to be enough to fade the heat over their taxing of the working classes that compromise the heart and soul of the state Democratic Party. (Besides the food tax, lawmakers approved a 1/8 cent increase in the overall gross receipts tax which hits lower income earners more than higher earners.)

In December, former GOP Chairman John Lattuzio wrote to us of that 1994 election year. His words bear repeating because we could have some political Déjà vu:

A campaign was created by the NM GOP to repeal the six cents per gallon gas tax. My best estimate of the total cost was about $1,000. Just prior to the election, a barbecue was held in Belen that attracted close to 1,000 people. They all raised their hands and joined the ‘Posse’ organized to defeat the ‘Gas Tax Gang. The campaign was driven by the party faithful, and received more earned media for a campaign of this type than I had ever experienced.

Henry Ford once famously said: "History is bunk." Perhaps. But that doesn't stop it from repeating.

GRADING THE SESSION

The regular 30 day session of the Legislature that sputtered to an end Feb. 18 produced no state budget for the first time in a quarter century. It fully deserves an "F" for failure. The four day special gets a D, not an F, only because they passed a constitutionally required budget. But it is faith-based budgeting. It assumes state revenues will grow by 6 percent in the year that begins July 1. But no one believes it, and another special session appears to be right around the corner when state revenue projections show the state economy to be flat on its back.

If we are going to make prayer a central tenet of state budget planning, the least the Santa Fe pack could do is own up to it and call in the Hopi snake dancers for help in making it rain dollars from our turquoise colored skies.

HUNGRY PACKARD

We did take notice that a $6 million cash outlay to Hewlett-Packard made its way from the lawmakers and on to the Guv's desk. That's to help the computer giant open up its Rio Rancho call center where it says it will employ over a thousand. With HP having $12 billion in the bank and the state facing a $600 million shortfall, you might think the corporate giant would have thrown the state a bone by rejecting this latest round of millions. Okay, stop that chuckling.

TAX MAZE

We're going to talk a little taxes here. Now, come on. I can see your eyes glazing over. But reader Carol Nordengren made a point here yesterday of saying the elimination of a tax deduction aimed at increasing the tax on earners making over $100,000 would cost her over $300, even though she makes a third of that. While Carol would pay more, other readers say she would not be on the hook for as much as she calculates:

Reader and attorney Helen Hecht, tax counsel for the Federation of Tax Administrators, reacted to Carol's email in DC and came with this:

The provision (approved in the special session) would require that a taxpayer who itemizes add back the state income tax that is deductible for federal tax purposes before computing tax on that income for NM. The reader said she made 1/3 of $100,000 in (taxable) income...Her NM tax amount would be a maximum of $1,355 using tax tables from last year to calculate her tax, assuming she is single. (You have to use the tax tables because NM's tax rate ranges between 1.7% and 4.9% and that makes a big difference here.)

That $1,355 is the amount that she can deduct for federal tax purposes and that she would have to add back for state tax purposes. Since the incremental tax rate (for income over the $33,333) would be 4.9%, the additional tax on the $1,355 add back would be $66, not $308.

Since she's paying slightly more in state taxes, she would get a slightly greater deduction for federal tax purposes next year and would end up paying a little less in federal taxes as well so the actual out-of-pocket amount would be something less than the $66.

Contrast this with someone who has $100,000 in taxable income. Their state tax add-back would be about $4,618. Their additional NM tax would be $226, about three and a half times more than what the reader would pay.

And Richard Anklam of the NM Tax Research Institute also concluded, like Helen, that Carol would owe in the $60 range, not over $300. He emailed:

Make no mistake, the add-back is a tax increase...but the vast majority of states require the add back of state taxes. The argument is the Fed’s don’t allow you to deduct federal income taxes paid, why should the state allow you to deduct state taxes? It’s also progressive in that it’s tied to state income taxes paid, which is of course tied to income. The more you make the more likely you are to itemize. The more you benefit from that the more you’ll be impacted by the proposal.

Thanks to Helen and Richard for the tutorial (we feel like we just were forced to eat our Brussels Sprouts).

Middle income Carol will still end up with a slight tax increase. although not as much as she feared. Wouldn't it have been more equitable for the Legislature to have adopted a surcharge exclusively on only high wage earners? Or increase slightly the tax rates on the wealthiest taxpayers that were rolled back so much in 2003? The answer is yes and yes.

THE BOTTOM LINES

More reaction to the the news this week that Big Bill is under consideration to become the million dollar a year CEO of the Motion Picture Association of America. Bill claimed he wasn't interested, that he's going to tour all the major league baseball stadiums when he is done being Guv. From the email:

I really don't think Big Bill is going to have much to do with Hollywood, big bucks and all. I think he wants to tour baseball stadiums throughout the country because he has his eye on becoming the Commissioner of Baseball. Big Bill wants to go out with a bat and glove in his hand, not some movie tickets!

Thanks for your company this week. Let's do it again soon.

From Albuquerque, I'm Joe Monahan reporting.

Email your news and comments.

(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Thursday, March 04, 2010

New NM US Attorney Picked; Ken Gonzales Tapped; Plus: Update On "Hollywood Bill" And: Capitol Bitterness Over Food Tax Revival 

Kenneth Gonzales
The question in the wake of the nomination of Assistant US Attorney Ken Gonzales as the new NM US Attorney is what role current Republican US Attorney Greg Fouratt will play in the office. (White House release here.)

Fouratt crowed publicly prior to the Gonzales announcement that he knew who the White House was going to pick and that he and the NM public would be pleased. It took over a year for the White House to make the nomination.

Insiders say Gonzales could chose Fouratt as his First Assistant US Attorney, a powerful position that would keep Fouratt in the mix. If not, Fouratt is still expected to stay on as an assistant US attorney.

Fouratt has been aggressive in pursuing state corruption cases, but he was unable to nail Big Bill. His attempt to have the Guv indicted in the CDR bond scandal fell short. However, the federal grand jury continues to look into State Investment Council decisions and indictments could occur sometime this election year.

Gonzales, 45, a graduate of Pojoaque high school and a 1991 grad of the University of New Mexico law school, has been an assistant US attorney since 1999. He is a former legislative director for Dem US Senator Jeff Bingaman. It is Bingaman who recommended Gonzales for the top federal position. He said of the nomination:

Ken has the experience required of a U.S. attorney, having served for the past 11 years as a career prosecutor working on cases involving organized crime, narcotics, anti-terrorism, and other violent crimes...Ken worked as an aide to me more than a decade ago, so I have witnessed first-hand his keen legal judgment, fair-mindedness and strong work ethic. I applaud the president for choosing someone of Ken’s caliber...

Bingaman said he sent a short list of candidates to the White House for consideration, but never released the list publicly, giving rise to speculation that the job was being wired for Gonzales all along.

Among those who applied for the post were Santa Fe attorney John Pound, veteran ABQ lawyer Pete Dinelli and Dem State Rep. Al Park. Others who were interviewed, according to our legal beagles, included District Court Judge Stan Whitaker and several assistant US attorneys.

Our Beagles broke the news back in January that Gonzales would be the pick.

The US attorney's office has been a lightning rod in state politics. David Iglesias was fired from the position by the Bush administration and that set off a congressional investigation as to whether he was axed for not going after corruption cases involving Dems. Then-Senator Domenici was reprimanded by the Senate Ethics Committee for making an improper phone call to Iglesias. Iglesias said Gonzales was a "great choice."

The US attorney post goes to the party in power, but with Dems on the defensive over corruption scandals, Republican Fouratt's hand was seen as strengthened. Bingaman is getting some criticism for appearing to cave to the aggressive prosecutor and going with Gonzales who has minimal management experience. Politically, however, the move could be seen as helpful as Obama and Bingaman both work to curry favor with Hispanic voters. They are both on the ballot in 2012.

The Gonzales nomination requires US Senate confirmation which is expected since he has already been vetted by the Justice Department,. The White House and Bingaman have not yet nominated anyone for the position of US Marshal, a job still held by Republican Gordon Eden, even though the Dem administration is nearly 14 months old.

HOLLYWOOD BILL

Big Bill came with one of his canned responses to the latest speculation that he is in line to become the new CEO of the Motion Picture Association, a move that would pay him over $1 million a year, get him back in big time politics in DC and catapult Lt. Governor Diane Denish into the Governor's office. Says Bill:

The governor is not interested in this job and he is not interested in becoming a lobbyist. He plans to live in Santa Fe and drive around the country visiting Major League ballparks after term ends.

But this job rumor has the Alligators most intrigued. What's not to like, they ask and they put the odds at 50-50 that he gets it. Richardson wants out of here; Denish needs a push up the ladder, and the White House doesn't want an R on the Fourth Floor when election time rolls around in 2012.

TV news reporters were telling us they are hearing Richardson has a firm offer. Again, we'll wait and see if we get the ultimate game changer for the 2010 race for governor.

GOP SCENE

R's dread a Denish Guv appointment, but are more fixated now on who will get their Guv nomination in a five way race. Opponents of Pete Domenici, Jr., who leads in the early polling, are saying his campaign is lowering expectations for Domenici's performance at the March 13th preprimary convention.

Domenici has been saying publicly that he expects to get the needed 20% of the preprimary delegates to win an automatic spot on the June 1t primary ballot, but his campaign operatives have been downplaying that expectation, saying they are looking past the peprimary. If you don't get the 20 percent, you can still get on the ballot by filing additional petition signatures. However, a poor convention showing can cripple a candidacy by drying up money.

Domenici's foes say that his late entry into the race is no excuse for his not being able to muster up 20 percent of the some 450 GOP delegates. "If he can't get 20 percent of his own party to support him, how does he expect to beat Diane Denish," asked one GOP operative.

We guested with KKOB-AM radio's Jim Villanucci Wednesday, a hard-core Republican, who told us he thinks all five GOP Guv candidates may try to stay in the race, no matter what happens at the GOP preprimary. It could happen.

CAPITOL BITTERNESS

Here's the AP wrap on all the Wednesday action at the Special Session. Here's the Journal's wrap as well.

They are coming back today to do some mop-up but the heavy lifting is done. A tax bill is on the way to the Governor's desk with a budget soon to follow. They will buy lawmakers some time, but another special session could be only months away as revenues continue to stagnate or decline.


The food tax was dead as I-40 roadkill when the Legislature adjourned its regular session. Its approval (2 percent on food items) in this special prompted this analysis from one of our Capitol readers against the tax:

This is really a triumph of "group think" with a few powerful senators pushing these tax schemes down the throats of their colleagues, who blindly swallow without chewing because they need to be loyal to the "leadership."

No one outside the Roundhouse believes this new food tax scheme is a good idea. Of course, the public is locked out of the process as legislators go from secret caucus to secret caucus. It is a lobbyist's paradise! No public there to hold everyone accountable. No messy hearings where the truth and other points of view can come out about these crazy schemes...Just back and forth horse trading in private over lunches paid for by lobbyists (who think taxing food is a swell idea because it won't affect their clients' various loopholes, subsidies and exemptions)...

While the food tax appears headed for the Guv's signatures and there was also a tax deduction eliminated that will raise the taxes on well-off taxpayers, the political consequences for the Dems may be just beginning.

ABOUT THAT DEDUCTION

The Legislature and Governor refused to roll back the big tax rate cuts of 2003 or slap a surcharge on high wage earners to help solve the budget crisis. That deduction they eliminated and that they say has wealthier taxpayers sharing the budget pain isn't just going to impact the well-off says reader Carol Nordengren:

Joe, you blogged: "The move "would apply mainly to taxpayers making over $100,000."

I checked my '09 taxes , and although I earn only 1/3rd of the "$100,000" cited, my tax liability to the state would increase by $308. Thanks guys (and ladies).

As my "income" is derived from NM retirement and social security, maybe I'll have to become a double dipper to pay my NM taxes?

We 've been getting email on Carol's math from readers who say she has miscalculated. We'll run some of it on Friday

DEEP INSIDE

Let's keep it in Santa Fe and go deep into the bureaucracy to one of our Senior Alligators who has more on the abrupt resignation of attorney AJ Salazar as head of the Bureau of Elections for NM Secretary of State Mary Herrera. First, the newspaper hits with this:

The former state elections chief is accusing Secretary of State Mary Herrera of soliciting money from firms that contract with her office and ordering "exempt" employees to obtain petition signatures for her re-election campaign.

Our insiders say bureau administrator Kelli Fulgenzi will take over the job. Salazar is the fourth elections boss under Herrera:

Joe, all the previous election directors under Mary were also attorneys. Kelli is not an attorney and is completely the creature of Deputy Secretary of State Don Francisco Trujillo. She has followed his orders explicitly and now is being rewarded. All information that comes out of that office and every single document must be approved by Don Francisco. None of the election directors had the slightest autonomy to run anything. Also, a recent development in that office has been the hiring of Gilbert Montoya, the brother of Letitia Montoya, who is Mary's campaign manager. His job title is "special projects."

So go the inner machinations of La Politica.

This is the home of New Mexico politics. Email your news and comments. Interested in advertising here? Drop us a line.

(c)NM POLITICS WITH JOE MONAHAN 2009
Not for reproduction without permission of the author

Wednesday, March 03, 2010

Richardson Going Hollywood? Guv Considered For CEO Post; Denish Again Waits, Plus: Latest Santa Fe Action, And: Yet Another Election Director 

Richardson & Redford
All of you who bet that Big Bill was going to finish out his second four year term, start hedging those bets. Richardson is reportedly under consideration to become the CEO for the Motion Picture Association of America. This is a major plum. The current CEO, former Congressman Dan Glickman, pulls down a whopping $1.3 million a year in salary and benefits. The job is primarily lobbying Congress and is based in DC.

The news that Richardson's name was under consideration for the job that Glickman will leave next month was first reported by the National Journal's "Under the Influence" magazine.

Others in the mix are Robert Pisano, the former vice chairman of MGM, and currently MPAA's COO and Richard Bates, who was recently named the head of Disney's Washington D.C. office.

The Guv's office told the New Mexican in response to the job speculation:

The governor is not interested in this job and he is not interested in becoming a lobbyist. He plans to live in Santa Fe and drive around the country visiting Major League ballparks after term ends..

Only the other day the Guv hosted Hollywood acting legend Robert Redford at a Santa Fe news conference where Redford announced a new center for training Hispanic and Native American filmmakers. His administration has pushed hard for Hollywood here, passing major tax breaks for the industry that has made movie production here flourish like never before. The tax breaks, costing the state about $80 million a year, have generated controversy, with some state lawmakers questioning the generosity.

IMPACT ANALYSIS


We've blogged for the past year of the possibility of Richardson making an exit and paving the way for a Diane Denish governorship. Most of the speculation has centered on Bill going to work in some capacity for the Obama administration. But parachuting into private industry would be a much smoother way out, avoiding the controversy that is inevitable with any political appointment.

A Richardson adios in April would make Lt. Governor Denish the Governor seven months before the November election. That's a potential nightmare for the Republicans. Her name ID would soar, she would have the power of the incumbency and best of all--the chance to separate herself once and for all from the shadow of Richardson.

A Richardson departure would have to be welcome by the White House. It would mean the odds of the Guv's office staying in Democratic hands would soar, helping President Obama in his 2012 reelection effort in this crucial swing state. It makes one wonder if the White House, with connections to the K Street lobbying crowd, isn't putting a word in for Bill.

Richardson would be the first Governor to vacate the office without finishing his term since 1962 when Ed Mechem had himself appointed to fill a US Senate vacancy.

NEWS AVALANCHE


The latest Richardson stunner came amid a cascade of state political news. The Legislature was in day two of its special session to solve the state's budget crisis, city elections were held throughout the state and yet another state Bureau of Elections director was leaving the Secretary of State's office.

From Santa Fe there's news on the latest deal to solve the state's estimated $600 million shortfall for the budget year starting July 1st. The Senate late Tuesday passed, on a 25 to 15 vote, a bill that raises approximately $200 million through a combination of gross receipts and personal income tax changes. The income tax changes are aimed at the criticism heard here and elsewhere that the Senate was sparing the wealthy from any of the budget pain:

The Senate drafted an omnibus tax bill that would raise gross receipts taxes one eighth of a percent, allow local governments to raise gross receipts taxes on food, and close a New Mexico personal income tax deduction for payment of federal income taxes. That deduction is available only to state residents who itemize on their returns. The bill also would increase the amount of tax rebates for lower-income New Mexicans and allow more people to take advantage of that rebate.


A House committee, which on Monday voted against a bill raising the tax on cigarettes by 75 cents a pack, did an about face and voted — along party lines — to recommend passage of the bill. The committee agreed to earmark 25 cents of the increase for education.

The move to close that personal income tax deduction would hit high-income taxpayers most and was made to placate opponents of the tax on food. They argue that tax and other tax increases to balance the budget are being targeted mainly at middle and lower income residents. The deduction change made it possible for the Senate leadership to persuade progressive senators to swallow hard and vote for the bill which went to the House where debate went on into the wee morning hours.

ELECTION NEWS

No surprises in Santa Fe or Rio Rancho on Election Day. Incumbent Mayors David Coss and Tom Swisstack in Rio Rancho are both re-elected.

We had a cliffhanger in Espanola. Alice Lucero beat Alfred Herrera by fifteen votes. Lucero 791; Herrera 776. Herrera gave up his District 2 seat to run for mayor. Incumbent Mayor Joseph Maestas did not seek reelection.

Election results from around the state here.

ANOTHER ELECTIONS DIRECTOR OUT

Alligators reported Tuesday night that Kelli (Baca) Fulgenzi will become the new Bureau of Elections director under Secretary of State Herrera after yet another director bit the dust. Fulgenzi was an assistant city clerk in ABQ before joining the SOS as administrator of the Bureau.

Fulgenzi will succeed attorney A.J. Salazar who abruptly quit the $95,000 a year job after holding it for less than a year.

Insiders say Salazar, like previous election directors Daniel Ivey Soto and Gerald Gonzales, clashed with Deputy Secretary of State Don Francisco Trujillo who manages the day to day affairs at the SOS office.

The June primary election is only a couple of months away, but Herrera says she expects it to go smoothly, despite the turnover in the bureau. That's more than can be said for anyone who takes the bureau job. Mary is going to have to have a talk with Trujillo if we are going to get an election director who can stay the course.

EVEN MORE BREAKING

The ABQ Journal coming with news on the Domenici Jr. GOP Guv run. It's more baptism by fire:

An Albuquerque lawyer with connections to more than $40,000 in campaign contributions to Republican gubernatorial candidate Pete Domenici Jr. pleaded guilty to eight felony counts of tax evasion in 2007.

Robert M. Fiser donated $1,000 under his own name and $17,100 from companies he owns. He also solicited $14,000 from family members and another $11,800 from companies he represents.

THE SANTA FE WAY

We wrote this while awaiting passage of the Senate bill Tuesday night that partially reinstates the food tax, but also clips well-off taxpayers a bit. Let's see what the House does where all 70 members are up for election this year. Senators do not face voters until 2012.

Is Santa Fe taking note of those 100 lost jobs at Garduno's, the ABQ based restaurant chain that is now in bankruptcy? They should because they are emblematic of the economic problem our state faces. It is the lower and middle classes getting hammered much more by this brutal recession than the professional and upper classes.

Restaurants, retail and construction have been leading the way down along with manufacturing jobs. Doctors, lawyers, accountants and other professionals we speak with tell us about business being off, but not in all cases, and they are keeping their doors open.

That's why there is so much concern over Santa Fe's head-in-the-sand approach to taxation. Relying solely on increases in the gross receipts tax and on cigarettes and food hits the groups that are already being hit the hardest--those "working families" the Democrats are so fond of citing in their propaganda. The professional classes are much less impacted by a price rise of a couple of dollars. And the vast majority of them would hardly notice an increase in their income tax bills of a couple of hundred dollars.

Santa Fe talks about spreading the pain. But the pain for thousands of working New Mexicans--now out of work--is here and now and deep. Record numbers of New Mexicans are enrolled for food stamps, Medicaid, and unemployment insurance. Let's repeat that for Senators Smith, Jennings and Sanchez--Record Numbers.

The American bargain is based on fairness and building a middle class. By piling most of the tax increases on those who can least afford them, Santa Fe would perpetuate the already wide gap between the wealthy and the shrinking middle class that they should be working to close.

There once was a New Mexico Democratic Party that used to say such things. Where did it go?

DOUBLE-DIPPING

The Guv is getting credit for signing a measure banning double-dipping. That's when retired government workers go back on the state payroll and draw two checks. The new law says:

Retirees who return to work cannot collect their PERA pension; retirees must wait out 12 months before returning to public employment, including as an independent contractor and current return to work employees shall pay the PERA employee contribution

When we first glanced at the measure, we didn't notice that it called for having current double dippers pay their contributions to PERA, instead of the state. That will save a lot of money, even though current dippers are being allowed to stay on.

THE BERRY BEAT

There is no discernible job growth in the ABQ metro area, but like his counterparts in Santa Fe, ABQ Mayor RJ Berry seems to be hanging on and hoping for a rebound. We are now dealing with a generations-high jobless rate of 8.7% in the ABQ metro. That doesn't include those who have given up looking for work or those who have accepted part-time jobs. Including those measurements might put us in the low teens.

Berry is delaying the tough decisions on city personnel until he sees the white of the eye of this nasty slump. His budget aides are sending mixed messages, with the shortfall projections for the budget year that starts July 1 ranging anywhere from $17 million to over $55 million.

But with the layoff of 100 at Garduno's and more jobs to vanish when the South Valley GE plant closes later this year, Berry is being urged by City Councilor Ken Sanchez to begin planning employee layoffs, furloughs or both. Maybe Berry already is, but doesn't want to panic anyone.

If this fiscal storm continues to rage, Berry's best option is furloughs and salary cuts. Throwing more people out of work is not going to help anyone, and a job with less pay is better than no job at all. Other cities have gone this route before resorting to firings. They've also asked for early retirements.

The city council will begin debating the budget in earnest in April.

RADIO DAY


You're invited to hang out with us today at 4 p.m. on 770 KKOB-AM radio where we'll join host Jim Villanucci to discuss the 2010 race for Governor and other key contests. Its there a front runner for the GOP Guv nod or is it anyone's game? Perhaps some of the callers to the 50,000 watt conservative talker can give us some clues.

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(c)NM POLITICS WITH JOE MONAHAN 2009
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