Friday, May 17, 2013

Filling Out '14: Who Will GOP Run? An Insider Games Potential Players, Plus: Alligator Strike On Junior Dem Legislators Who Supported Tax Cut, And: At The Movies 

The Dems may be fretting over what many of them perceive as the lack of a strong Dem Guv contender for next year, but what about the R's? They have Susana for Guv, but there's work to do in filling out the rest of the '14 ticket. One of our GOP insiders has the latest scuttlebutt on possible contenders and we add our take to theirs:

GARY JOHNSON--It's hard to see the former GOP Governor running for anything after his Libertarian presidential candidacy last year, but more Republicans are saying he should run for the US Senate against Tom Udall--and run as an R. 

We don't see Gary taking the dive, but we'll stay tuned.

SIMON KUBIAK--We haven't had a Republican state auditor in decades. ABQ attorney Kubiak is weighing a run for the post being vacated by Hector Balderas, or a run for the ABQ congressional seat held by Dem Michelle Lujan Grisham'.

Either one seems plausible, but both races heavily favor the Dems.

NATE GENTRY--Some insiders are trying to convince him to give up his ABQ state House seat and run for Land Commissioner. They are claiming they'd raise a lot of oil money for him and that it could set him up for a run Governor after Susana is out. Sounds pretty wild but that's the chatter.

That is wild. We see Gentry--the new state House Minority Whip--staying put.

PAT LYONS--While many thought he'd challenge Democrat Ray Powell for Land Commissioner, we are told he will run for re-election to the Public Regulation Commission. Lyons is definitely not happy about not being PRC Chairman anymore, but he loves that safe check. The job pays $90,000 a year.

This looks like the right move for Lyons. Powell is hard to beat.

MATT CHANDLER--Still seen as our mostly likely go-to guy for us for attorney general. No other names are circulating. Chandler is the District Attorney in Clovis and was the GOP nominee in 2010 but lost to Dem Gary King. He seems ready to run again.

Yes, despite his recent follies in a Las Cruces corruption case, we see Matt as a potentially strong candidate for the R's. We think he's ready for another go.

DEMESIA PADILLA--She is the head of the state taxation department.  She could end up being our Republican nominee for state treasurer. Her name is out there. She ran once before and we need Hispanics on the statewide ticket.

And if Dem Patrick Padilla wins the Dem treasurer nomination, you would have Padilla vs. Padilla. That would be interesting,

JOHN SANCHEZ-- Still hearing rumblings about a GOP primary challenge to Lt. Governor John Sanchez. One of the names you previously reported--Randy Baker--owner of ABQ's DRB Electric. Another name bandied about is Economic Development Secretary Jon Barela. As you know, there is no love lost between Sanchez and Susana. It will be interesting to see if she lets a challenge go forward. Meanwhile, Sanchez has given himself a busy schedule and is traveling across the state.

Why are some in the Susana faction so resentful of Sanchez? Maybe they dread the thought of him succeeding her some day. He is popular with the public and press and does a decent job of presiding over the state Senate. Messing with him is only going to hurt Susana.

GATOR STRIKE

Here they come, kids. The Alligator strikes on those "progressive" legislative Democrats who went along with Republican Governor Martinez's tax package that included a corporate tax cut. The news that the administration gave lawmakers bad numbers on the impact of the bill has the Gators teeth especially sharp. A sample from the email:

I guess Senate Majority Whip Tim Keller, House Speaker Ken Martinez and State Reps Brian Egolf and Moe Maestas are not the "masters of the deal" they appeared to be (or tried to sell us) at the legislative session. Remember when they were boasting about this tax deal? Trying to be grown-up bi-partisan legislators? Better go back and delete those Tweets and Facebook posts, boys! Blame needs to be spread around for this mess. Blaming (Department of Finance and Administration Secretary Tom) Clifford for handing out bad numbers is convenient for the Dems, but believing Clifford and trusting this administration really makes these junior Dems look like punks.

Does that Gator mean these Dems were "punked"? Well, the blame game is alive and well....

AT THE MOVIES

Blog reader and movie reviewer Eric Lucero is back at the movies for the weekend and into darkness with Star Trek:

Star Trek: Into Darkness (4 Stars out of 5) is the summer's first film entrant to finally blast into our Universe. I happily advise you to see the 3D version while viewing the latest adventures of the intrepid crew of the USS Enterprise. It will blow your mind, even if you are not a fan.

This well-produced and directed Sci-Fi epic by pioneering director J. J. Abrams is the much anticipated follow up to the successful re-boot of the original movie franchise based on Gene Rodenberry’s 1960's TV series. It achieved cult status and this 12th movie installment may very well become the best and most profitable one yet. 

Fans outside of North America have already seen Captain Kirk’s (Chris Pine) response to the villainous military terrorist, Khan Noonien Singh. Hard core fans of the TV series will remember “Khan” as portrayed by the late Ricardo Montalban. The rest of crew reprises their roles. This is the 23rd century world of the ‘Federation.’ Enough said!

Thanks for stopping by this week. Reporting from Albuquerque, I'm Joe Monahan.

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Thursday, May 16, 2013

Now They Tell Us: Susana Budget Boss Says Tax Cut Package Based On Bogus Numbers; An Apology, But What About A Do Over? Plus: Econ Wreckage Frustrates Santa Fe; A Way Forward, And: Pearce Warms To Federal Spending 

Clifford & Guv (Journal)
This isn't a case of egg on the face--it's an entire omelet. When it comes to the hyper-controversial tax cut package passed in the final frenetic seconds of the 2013 legislative session, the state's top budget official pulls an Emily Litella from Saturday Night Live and says "Never Mind!"

Well, the Alligators warned us that all sorts of creepy crawlers would be coming out into the light in the aftermath of the rushed passage of the corporate tax cut. But not many of them suspected that Tom Clifford, the head of the state Department of Finance and Administration and Governor Martinez chief budget guru would be the one revealing some of them.

Clifford told a stunned Legislative Finance Committee that the information he gave legislators on the big tax bill during their near-panic to get the deal done was based on--get this--another version of the bill. It turns out the tax cut package is going to cost the state a whole lot more than Mr, Clifford and the other fiscal hawks at the Capitol had earlier told us and lawmakers.

Tom says he "apologizes" for his mistake. And that always makes taxpayers feel better, doesn't it? Not.

This tax package--touted as a panacea for the state's ever deepening economic woes--is turning out to be a political tar baby. Dems who voted for it are accused of caving in to the Governor. Some of them could get primary challenges for it next year. Democratic House Speaker Kenny Martinez has had the first year of his  speakership marred by his over eagerness to ram the bill through and now faces trouble in his House Dem caucus. And now even the Republican administration is taking hits.

If passage of the bill was based on erroneous information, shouldn't Martinez and the Legislature redo the package? Well, that's how it works in the real world, but not Santa Fe. When they get egg on their suits up there, they just send the dry cleaning bill to Mr. and Mrs. New Mexico.

REALLY, TOM?

Clifford's notable faux pas strained credulity for a number of readers. Among them is ABQ attorney Jeff Baker who said Tom and his enablers in the press deserve all the brickbats thrown at them:

Why is the article in the ABQ Journal about DFA Secretary Clifford providing misleading information ($70 million worth of misleading information) to the Legislature about the fiscal impact of the Governor’s tax bill located below-the-fold on page C-1, instead of above-the-fold on the front page of the paper? Does anyone seriously believe Tom Clifford simply was confused about which version of the bill he was testifying about?

Come on, Jeff. everyone knows the front page is reserved until 2015 for Big Bill and his cronies. Susana and Clifford have to wait their turn--but not until after she's safely re-elected, of course.

THE WRECKAGE

Sen. Smith
The accumulating economic wreckage in our enchanted land continues to be accompanied by sophomoric ramblings from legislative leaders and the administration. Sometimes it seems downright mean. 

Look at this from Senate Finance Committee Chairman John Arthur Smith: 

Like...Republican Congressman Steve Pearce of Hobbs, Smith also questioned the work ethic of some residents in southern New Mexico. "Anybody who really wants to work can find a job," Smith said. He told the committee that New Mexico had a deficiency that hurts it nationally: "We're perceived as a welfare state and an entitlement state."

Okay, Dr. No. How about telling that to those attending the southern NM job fairs sponsored by Pearce? Or coming up here to ABQ and finding jobs for the 7,000 folks who in January sought them at the Uptown Target?  Or the 6,400 who applied this month for jobs at the Downs at ABQ? Or maybe you can interview some of the ex-New Mexicans who have fled the state (and your home county of Luna) seeking jobs elsewhere to find out why they are leaving.

Maybe anybody who wants to work can indeed find a job---just not necessarily here.

THE FLAWS OF SANTA FE

Senator Smith, Secretary Clifford and other charter members of the austerity club of Santa Fe are growing increasingly frustrated that the state remains mired in an economic dystopia as the rest of the region emerges from the recessionary cocoon. 

But our neighboring states do not have a social conditions crisis like we do. They have better educated work forces and less pathologies. We have high rates of poverty, drug and alcohol addiction, iliteracy, suicide, school drop-out rates, obesity, diabetes, teen pregnancy and more.

And the recession has steepened our descent. Record enrollment for food stamps and Medicaid are the hallmarks as is the population growth that has slowed to a trickle. Construction workers and professionals alike are fleeing for greener pastures.

HOW TO SOLVE IT?

It's not going to go away by passing a tax cut or stashing away hundreds of millions of dollars in surplus money. It's going to take a massive investment of resources to alter the culture that spawns these pathologies. Our failure to confront this is why we have the "welfare state" so lamented by Senator Smith and Secretary Clifford. 

What will? There's no sure thing. Just as there is no guarantees when Santa Fe gives millions in  tax breaks to private companies to try to attract jobs, But a good gamble would be bipartisan support of a constitutional amendment that would ask voters to allow us to use a portion of the state's multi-billion dollar Permanent Fund for very early childhood education and intervention. That's how you start to change the welfare state mentality that so troubles Senator Smith--you must spend money. Put in terms he might better understand--you must spend money to make money.

The First Born Program at the Gila Regional Medical Center is one example. But Smith opposes the constitutional amendment and will not even allow a hearing in his important committee. 

Secretary Clifford's "mistake" over the tax bill is a real boner, but in the big picture it is relatively meaningless. The tax package approved by the legislature will have little impact on the state. That's because Senator Smith is right--we are perceived as a place that is not a very nice place to live. That's what we have to change.

Santa Fe needs to halt its incessant and ineffective tax code tinkering as well as its money hoarding in the name of a discredited austerity. It's time for a new way forward. It's time for bold change.

PEARCE'S PUSH

GOP southern Congressman Steve Pearce, always a reliable voice for ever smaller government, seems to be changing his tune some as the state is slammed by federal cutbacks and the threat of cutbacks.

While Dem Senators Udall and Heinrich and Rep. Ben Ray Lujan out out a joint news release touting their success in having $19 million "reprogrammed" for environmental clean up at Los Alamos Labs, Pearce was putting out his own news release letting everyone know that he had done his part by writing a letter to the chairman of the powerful House Appropriations Committee on behalf of the LANL funding.

The House is controlled by the GOP and the Senate by the Dems. Senator Udall is key since he gained a seat on the Senate Appropriations Committee (ABQ Rep. Michelle Lujan Grisham was not included in the release because her district does not include Los Alamos).

Pearce's district, which contains White Sands Missile Range, Holloman AFB, the WIPP project and Fort Bliss, is increasingly threatened by federal budget cuts and furloughs and he has been more vocal in advocating for federal funding in recent weeks, a departure from his profile as a fighter of government waste.

Polarization remains in the state's Congressional delegation, though. In the old days we routinely saw news releases celebrating New Mexico funding successes with the names of all members attached--both Dems and R's.

Pearce is the lone R in the five member delegation. That's why the Dems give him the end run, but Pearce's feisty personality may also be a barricade to more unity.

NO FOOTBALL?

Reader Gerges Scott of the Agenda-Global PR firm in ABQ writes of the talk on the Tuesday blog of some day eliminating the UNM football program:

No Football!!! What are you thinking? You’re breaking my heart. Can I tailgate at your house in the future?

Okay, Gerges, you can do it here, but it's BYOB and you have to settle for Irish stew.

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Wednesday, May 15, 2013

Dissecting The Spin: A Look At Guv's Latest Fund-Raising Letter, Plus: Driver's License Issue Fading? And: Labor Leader Says Dems Should Stop Infighting Over Corporate Tax Cut 

Governor Martinez may have a skimpy legislative record to campaign on next year, but while the Dems try to figure out who would be a good nominee, the Guv's spin machine is in full gear, doing its best to put some meat on Susana's legislative bones. Here are some statements from her latest fund-raising letter, along with blog analysis:

This session, we did something many thought impossible--we cut taxes and passed what they are calling the most significant tax reform in a generation.

Who are "they?"

The New Mexico Jobs Package cuts the business tax rate from 7.6 percent to 5.9 percent. That rate makes us much more competitive and will help grow jobs.

Okay, so should we expect in November of 2014 (election time) to have had a bunch of new corporations locate here? And if they haven't, should we then repeal the corporate income tax cut?

But we still have a lot of work left to do. The majority Democrats in the legislature continued the failed practice of giving driver’s licenses to illegal immigrants. This is a dangerous law and I will continue to fight to repeal it.

See our report below on how more states are actually liberalizing driver's license laws for undocumented immigrants.

In a little over two years, we have accomplished a great deal: In a bipartisan manner, we eliminated the largest structural budget deficit in state history--without raising taxes.

What "structural deficit" might that be? Much of the shortfall was tackled by Governor Richardson and the Legislature before Susana took office--and it included a tax increase. Also, we see Susana is no longer calling the structural deficit "$450 million." Is that because the claim can't be backed up?

(The Governor) provided A-B-C-D or F letter grades for public schools. Cut Governor’s office staff, fired chefs and cut Governor’s residence budget by 55%, and sold the state’s luxury jet. Allowed pensions to be taken from corrupt elected officials convicted of corruption. Prohibited corrupt individuals from contracting with the state.

Okay, those may not be all that earth shaking, but they at least they are accurate.

THEN AND NOW

We took a look at our 2010 Election Eve column regarding Martinez's likely win and we have to say so far it has played out pretty much as we expected and predicted: From that Nov. 1, 2010 blog:

If she wins, as the polls indicate she will, Martinez, at least for her first two years, will be in charge of downsizing state government while not dismantling the safety net that is essential to hundreds of thousands citizens in one of the nation's most poverty-ridden states. That sounds more painful than bold, but pain doesn't make a very good campaign slogan.

DIVERSION NO MORE?

The big diversion the Governor has put before the public for three years is her quest to repeal the issuance of driver's licenses for undocumented immigrants. Her political team has attempted to demonize Dem legislators who oppose the repeal, but the times they are a changin' and we wonder if the repeal issue will have legs beyond the Republican base as we approach the '14 campaign.

The news:

Gone are the days when New Mexico and Washington were the only states to issue driver's licenses to immigrants in the country illegally. Last week, the governors of Oregon and Maryland signed bills that will allow residents without proof of immigration status to obtain driver's licenses. Illinois authorized a driver's license law for illegal immigrants earlier this year. 

Colorado legislators approved a similar bill, though no Republicans voted for it. Colorado's governor, Democrat John Hickenlooper, has not said whether he will sign the bill...Rhode Island, Connecticut and Washington, D.C., are considering expanding their driver's license laws to include those without proof of immigration status.

Martinez has tried and failed in three legislative sessions and one special session to repeal the licenses. She appeared to be eying a compromise on the issue before the '13 session, but it didn't happen.

The more public fatigue that develops over the repeal, the better for the Dems who desperately need to have a conversation about jobs and income if they are going to bring down those 60 percent approval ratings of the GOP Governor and Mayor.

A BEAR TRAP?

Jon Hendry
Jon Hendry. head of the NM union for film, stage and TV workers, thinks the Dems need to stop their infighting over the passage of Governor Martinez's corporate income tax cut--a cut he supported as the bill also contained tax incentives for the film and TV industry. His argument:

In all these discussions about the last minute tax deal, including the robo calls and the finger pointing, we’re falling into the bear trap set for us by (Martinez political adviser) Jay McCleskey.

We’re ignoring what happened to the surplus. For three years this Governor has racked up multimillion dollar budget surpluses on the backs of public employees and educators. The unfilled state jobs have now gone from a problem to a crisis. Many departments are so severely understaffed that they can’t even function--the Dept. of Workforce Solutions being a prime example. The projection for this year is another surplus of over $100 million even with the tax adjustments.

As long as they have us talking about what happened, we aren’t talking about what should be happening with this money. I am going to propose  some constitutional amendments that require funded positions be filled and any surplus be placed into a trust fund for priorities such as education

Let’s not allow the Governor’s political people to drive our agenda. This is our money; it needs to be spent where it will make the most difference, not only to our members but to all New Mexicans.

LUCKY'S IN

Luicano "Lucky Varela
Santa Fe State Rep. Lucky Varela, the subject of endless Alligator speculation about his re-election plans for 2014, announces he will seek a 14th two year term from his Santa Fe area district.

He's 78 and  a health episode he had at the Capitol last year had speculation swirling that he could end his career. That's what happened with ABQ Dem State Rep. Kiki Saavedra this week. He announced he would retire at the end of his current term.

Varela says he feels fine and his son, Jeff, adds:

Your Alligators my be waiting for awhile on whether "Lucky" Varela will be retiring from the Legislature soon! Rep. Varela is in good health and is as tuned into NM State Government as ever before! As Chairman of the LFC and Vice-Chair of HAFC..

The Alligators will wait, Jeff, but remember it is the Gators who are making these Roundhouse veterans disclose to the press early their re-election intentions.

Varela, chairman of the Legislative Finance Committee is also deputy chairman of the powerful House Appropriations committee chaired by Saavedra. Presumably, he would move up to chair if he wins re-election next year--a likely prospect. But let's see if any Dem primary foe emerges who thinks it's time for Lucky to step aside. That's what happened to the late Speaker Ben Lujan in the twilight of his service. A young Dem nearly knocked him off in a primary. That Dem--Carlos Trujillo--did eventually take the Lujan seat.

Santa Fe can moan all they want about the Alligators being ageist. But age is an issue. Hey, Cardinals of the Roman Catholic Church don't get to vote for Pope after they reach 80. We don't think Lucky is likely to draw a primary challenger this year, but all bets are off for 2016. There is a younger generation that wants and deserves a seat at the table.

THE BOTTOM LINES

We blogged in a first draft Tuesday that southern GOP NM Congressman Steve Pearce has no announced opposition for 2014. Alamogordo attorney Leslie Endean Singh has announced she will seek the Democratic nomination for the seat....And when we broke the news Monday that longtimeABQ Dem State Rep. Kiki Saavedra would not seek re-election in 2014, we gave his age based on an incorrect entry on "Ballotpedia." Saavedera is 77....

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Tuesday, May 14, 2013

Cruces Cracks 100,000 Mark As NM Gets More Citified; What It Means For Our Politics And Economy, Plus: No More Football? NMSU And UNM Programs Draw More Scrutiny As Cost Grows & Performance Lags 

The news that the city of Las Cruces has joined the 100,000 plus population club is going to be welcomed by national Dems looking to take the southern congressional seat held by Republican Rep. Steve Pearce. The more voters living in the Democratic city, the better their chances of pulling off the upset. The presidential election year of 2016 is probably their next best chance when turnout surges. Alamogordo attorney Leslie Singh is an announced 2014 Dem candidate against Pearce.

The Las Cruces population numbers also reinforce the trend of New Mexico becoming increasingly citified. The rural areas are too small to attract significant economic development. Their populations--stagnant or dwindling for years--will continue down that road.

Cities tend to be liberal and with ABQ, Las Cruces and Santa Fe dominating the state, our five presidential electoral votes have become more safe for the Dems. In 2012 we were not a swing state, with the presidential candidates ignoring us. It appears that will again be the case in '16...

The Las Crucus population numbers also bring to mind the matter of water. Contrary to the Cassandras, New Mexico is not going to dry up and blow away. However, some rural towns and villages may fall off the map in the decades ahead. Water rights will--and must--find their way to the state's population centers. The loser will be agriculture. Already, ranches and farms are disappearing because of the severe drought. Those displaced are moving to the cities or out of state.

While Las Cruces has busted the 100k mark, the state's overall population growth is barely moving. It has become stagnant--like the economy.

People continue to move to the cities and away from the rural areas, accounting for a good chunk of the population growth of the cities. And what you see is what you may get for some time. With no major economic drivers on the horizon (with the possible exceptions of the NM Spaceport and oil and gas) the state motto of "It grows as it goes" may have to be rewritten as "It slows as it goes."

THE PHANTOM KNOWS

A reader calling themselves the "ABQ Phantom" writes of the city's econ scene:

It's not surprising that the city Economic Development Director John Garcia  boasts about the increased interest of businesses moving to Albuquerque. That's all he and Mayor Berry have to brag about. I don't thing they have brought a single new company to Albuquerque during their tenure. I don't recall one business that they have recruited to our city. I do recall BernalIilo County bringing in a beverage company to the South Valley and a Lowe's call center to the area, outperforming what Mayor Berry and John Garcia have done.

The question should also be asked of Susana Martinez and state Economic Development Secretary Jon Barela. How many new companies have they recruited to New Mexico during their tenure?

We suspect those questions will be asked in this year's mayoral campaign and in the '14 Guv election, but the critique of the state's economic development performance has been--shall we say--less than vigorous.

Many New Mexicans have low expectations. That explains in part why the stagnant economies in the city and state have not rocked the political scene more.

A MISCHIEVOUS AD

And take a gander at how this anonymous reader would approach the jobs issue:

I had a wry thought the other day when reading about the new horse slaughtering facility opening near Roswell, the first domestic horse slaughter house to open in the country in six years.  The story has garnered significant national attention. Unless I am mistaken, this is the first and only new industry brought to the state by Governor Martinez since she took office. Seems to me someone could make a mischievous political ad about this...

Well, that one is sure to provoke a number of "horse laughs" among the party of the Donkey.

RADICAL TIM KELLER?

Keller
Is ABQ Dem State Senator Tim Keller a "radical." So says the NM GOP as it puts up this video, apparently in response to Keller announcing that he is considering making a run for the 2014 Dem Guv nomination.

But Keller is hardly radical--at least in the eyes of mainstream voters. In fact, he has taken heat from Dems and others for supporting Republican Governor Martinez's corporate income tax cut. the video concentrates on Keller's pro-union views, but that's hardly a Scarlett letter in the major cities of the state. Still, you have to give the R's credit for shooting at any potential target of Susana's and you have to give credit to Keller for being worthy of the attention.

By the way, Keller, 35, registered as a Republican as a teen and later became a Dem.

Speaking of that corporate tax cut, the Center for Civic Policy, a left-leaning group generally favorable toward Dems is unloading on House Speaker Kenny Martinez for ushering through that tax cut in the final minutes of the recent legislative session. They put out a robo call against Martinez's action. Here's a partial transcript of the call sent into homes in Martinez's Grants, NM area district:

...If you live in Grants or anywhere in Cibola County, get ready for a tax increase or a cut in services. Here’s why: Representative Ken Martinez used his power as Speaker to ram through a package of massive corporate tax giveaways through the legislature without allowing any debate. It’s a policy endorsed by Republican Governor Susana Martinez. Now big corporations will get over $215 million in tax cuts and Ken Martinez and the Governor are making you pay for it. The package cuts money used by cities and counties to pay for community services like law enforcement and senior centers. Call Representative Martinez...Tell him he should be looking out for folks here in New Mexico, not big corporations.

The group put out another robo call into the ABQ area district of Dem State Rep. Ed Sandoval, That one praised the chair of the House Taxation and Revenue Committee for voting against the corporate tax cut.

NO MORE FOOTBALL?

New NMSU President Carruthers raised the possibility of dropping football as the cost of the under performing program grows, along with higher student tuition and fees. Could that possibility be entertained at UNM? Should it?....

Should the University of New Mexico student body have a nonbinding vote on whether to drop football from its athletic roster? Maybe that sounds outrageous, but it could come to that as escalating student fees to support UNM athletics draw more scrutiny and ire:

...Students who are protesting the UNM regents’ decision last month are not focusing on the rise in tuition (though they’re not happy about that, either)...They’re furious that, once again, the regents ignored their formal and solicited recommendation to not increase the fee that students pay to support athletics. Last month, the regents approved an increase that doubled the student athletics fee in the span of two years, boosting it by $33.45 (following an increase of $50 last year), bringing the per-person expense to $165.20, which will net athletics an additional $900,000 per year. Both of these changes went against the recommendations of the Student Fee Review Board.

Current college rules don't allow UNM to drop football and focus more on the popular Lobo basketball team, but we're floating the idea because we sense that in the years ahead something is going to have to give in a low-income state like ours. Having a vote by the student body would give us an early gauge on where things stand today.

Thanks for making us New Mexico's #1 political web site year in and year out.

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Monday, May 13, 2013

Two Big Paychecks For New NMSU Prez Carruthers; One You Know About And One You Probably Don't, Plus: Kiki Plans To Kick Back; Long Run By Saavedra In State House Nears End 

Carruthers
You probably know that former GOP New Mexico Governor Garrey Carruthers will make a handsome paycheck of $385,000 a year as the new president of New Mexico State University, but you may not know that while serving as head of the NMSU biz school Carruthers has sat on the board of directors of Molina Health Care and made major money doing so.

Public records show he has been awarded 25,582 shares of Molina since being named to the company's board. The shares closed at $36.98 on the NYSE Friday. That would value Carruthers' holdings at nearly $1 million or $946,000 to be precise.

The stock has been on a tear the past year--like many others--and has more than doubled in price. We don't know when Carruthers is eligible to cash in his holdings.

Carruthers began his service on the Molina board in February 2012. On May 2--just days before he became NMSU President--Molina reports awarding Carruthers stock grants valued at $411,000.

His new five year contract with the NMSU Regents says he must get their permission for any outside employment--like being a member of the Molina board for which he was compensated $52,000 in 2012, according to public records.

Before joining NMSU Carruthers was president of Cimarron Health Plan. According to a 2010 news report:

Molina insures 1.5 million Medicaid and Medicare recipients in 10 states, with 91,000 members in New Mexico. It is based in California and entered the New Mexico market in 2004, when it acquired the Cimarron Health Plan operation.

The Carruthers Molina connection has not been mentioned in media accounts, but there has been mention made that there is no "buy out" for Carruthers if he should leave NMSU before his contract expires. But with a cool million or so waiting for him, that wouldn't seem much of a worry for the 73 year old Garrey. He had a nice payday when Cimarron was sold and now in his golden years, he's scored another nice one.

NO SAAVEDRA DYNASTY

Rep. Saavedra
Kiki Saavedra, 77, and is one of the longest serving members of the state House of Representatives as well as chairman of the powerful House Appropriations Committee, will not seek re-election to another two year term next year. That comes directly to us from a family member who told us of the lawmaker's intentions weeks before last week's mishap involving one of his sons.

And it does not appear a family member will try to succeed Kiki in the ABQ South Valley area seat that the Democrat was first elected to in 1976.

Saavedra's son, Randy Saavedra, had his name tossed about as a possible successor to his legendary dad, but his hopes--if he had any--were quashed last week when he was busted for his third DWI. That made headlines because Randy, 41, is a public official--on the staff of Sandoval County District Attorney Lemuel Martinez as a programs director.

We are still awaiting word on whether Santa Fe State Rep. Lucky Varela--the deputy chair of the powerful appropriations committee--will seek another term in '14. He is close to 80, had a health episode at the recent session of the Legislature and may decide now is the time to give it up after decades of service. The retired state employee was first elected in 1986.

Kiki and Lucky would have no problem getting re-elected. Both remain highly popular in the city and the Roundhouse.

State Rep. Patty Lundstrom is positioning herself for the chairmanship in the event Lucky joins Kiki in hanging up his spurs and assuming the Dems retain control of the House after the '14 election.

TRANSFER AWAY

 Luján.& McMillan
From Washington, northern Democratic Congressman Ben Ray Lujan reacts to a letter on the Friday blog from Dr. Henry Casso that the state's congressional delegation work on tech transfer from the state's two national laboratories:

I couldn’t agree more with the reader that technology transfer has the potential to be a key component to economic growth and job creation in New Mexico...Last Congress, I founded the Technology Transfer Caucus in the House in order to draw attention to this issue and this year I am a co-chair of the Science and National Labs Caucus. 

During the last Congress, I also held a summit in Santa Fe to bring together local stakeholders and discuss strategies to expand opportunities to transfer technology from the labs to the marketplace. Last month, I introduced legislation to make it easier for local businesses to partner with the labs to bring new innovations to market and create new business ventures...

Just last week I met with Los Alamos Director McMillan to discuss efforts to enhance tech transfer at Los Alamos. I will continue to work with him, as well as Director Hommert at Sandia Labs, the Department of Energy, and my colleagues in Congress to promote tech transfer and the benefits that it can have for New Mexico. But...state and local governments, as well as organizations in the regional entrepreneurial system, must also be key contributors. New Mexico has great potential, but we all need to work together to turn this potential into fully realized economic benefits, and improved coordination is essential...

HISPANO POWER

Imagine if Hispanics who vote heavily Democratic popped their turnout by just a couple of more percentage points in New Mexico. Take a look:

The Census Bureau reports a larger share of New Mexico's Hispanic voters participated in last year's presidential election than in 2008 when President Barack Obama was first elected. About 56.2 percent of eligible Hispanic voters cast ballots in November, up from almost 53.7 percent in 2008. Turnout among non-Hispanic white voters, what in New Mexico often are called Anglos, was 70.5 percent last year compared with 71.5 percent in 2008.

That would seem all the more reason for new Dem Party Chairman Sam Bregman to be out pounding the pavement looking for young Hispanic candidates to get in the political game.

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Friday, May 10, 2013

The Econ Beat: Jobs Crisis Continues; 6,400 Apply For 400 Casino Jobs, Plus: The Myth Of Diversification; The Feds Are Us And Why Our Politicians Need To Fight, Not Surrender 

The ABQ jobs crisis is far from over. That was made abundantly clear this week when 6,400 job seekers sought 400 jobs at the ABQ Downs Racetrack and Casino which will open a new facility this summer.

These are mainly low-skill jobs--slot operators, valets and the like. It is another example of how those without college degrees are having the most difficult time landing employment in the city's stagnant economy.

Earlier this year Target opened a new store in ABQ's uptown and over 7,000 applied for a couple of hundred jobs, most of which paid in the $9 an hour range.

If there's any topic that deserves intense and passionate debate in the upcoming mayoral campaign it's what we are going to do with the thousands of semi-skilled workers who need jobs but can't find any.

COOL THE HAPPY TALK

Happy talk and wishful thinking aren't going to get us out of our plight, but we are getting plenty of that. The latest comes from a state-funded outfit called the NM Partnership whose president and CEO is Steve Vierck and ABQ economic development director John Garcia.

Perhaps out of a sense of desperation over the never-ending economic blues being sung here, they seem to be saying that because more companies have recently expressed an interest in possibly relocating here, the economy is picking up and our jobs depression is about to end.

The partnership has seen its average number of prospects increase from a low of just two in March of 2012 to eight for the month of April. About 10 percent of those companies, said, on average, will move to or expand in New Mexico. “They’re all a work in progress, but it continues to be a pressing need to accelerate the state’s diversification from federal government jobs,” Vierck said. “Our fist push is jobs and investment. It’s been flat.”

Let's state the obvious: The economy will pick up here when companies actually move here not because they are "considering" it. All kinds of companies that are doing well outside of New Mexico are planning expansions and moves. That's because the economy elsewhere is picking up.

The extra spin Vierck and Garcia put on this is that the controversial tax cut package passed in the final, frantic moments of  the '13 legislative session is responsible for this increased curiosity about New Mexico. Again, all we can say is show us the money--and more specifically the signed deals where companies are going to move here because of that tax package. We're not holding our breath. And we advise Messrs. Vierck and Garcia to do the same or else risk turning blue.

DIVERSIFY TO WHAT?

One other note. Why is the NM Partnership insistent on saying we need to "diversify" away from federal government jobs? Why are they and their far-right media allies so cavalier in throwing in the towel on the fundamental economic building block of this state for over 60 years? And that still is.

Again, we ask, where is the fight, the determination to protect what we have and also expand our private sector? Why are these goals seen as mutually exclusive in certain quarters? Is it based on an emotional resentment of government of any kind and not on what is best for our state's future?

Is the plan to replace federal government jobs that pay $80,000 a year with slot machine operators at the ABQ racetrack that pull down $9 an hour? Or are we going to bring in more $10 an hour call center jobs to replace those federal jobs that are viewed with such disdain by extreme elements in the state economic development community?

Let's put it this way: What is the percentage of private sector businesses in this state that receive zero contracts from the Federal, state or local governments? How many of them would be put out of business if they did not have those contracts? We'll wait for the NM Partnership to get back to us on that, but, again, we won't hold our breath.

FIGHT OR PERISH

Here's what we're talking about. At the risk of engaging in our own version of wishful thinking, we see Governor Martinez, seeking re-election next year, as perhaps beginning to see the light on the importance of this state's federal funding and expending some political capital to protect it:

...Martinez is putting pressure on the feds now that a radioactive waste cleanup is in trouble at Los Alamos National Laboratory. The U.S. Department of Energy promised the project would be complete by June of next year...But now it appears the deadline will not be met unless the lab gets tens of millions of dollars in additional funding...More than 100 jobs at LANL are on the line...the Department of Energy requested an additional $40 million to help complete the LANL cleanup....The governor is backing that request and sent out a letter to US lawmakers, both Democrats and Republicans, urging them to approve the funding...The governor says she has personally called the Department of Energy and also spoke with Vice President Joe Biden about securing additional funds for the cleanup.

Martinez actually showed up at Los Alamos to talk about the risk to the federal funding and allowed her face to be associated with the story.

Welcome aboard, Governor, we've been waiting for you.

And from Senator Udall who is also seeking re-election next year:

U.S. senators from Wyoming and New Mexico (Enzi and UDall) said they plan to roll out legislation this week to restore about $110 million in cuts to a federal minerals payment program that hit their states the hardest...New Mexico faces a loss of about $25 million....

The ABQ Journal's DC reporter added:

The normally mild-mannered senator seemed to get a bit hot under the collar as he maintained that the federal government has no right to the money.

Exactly. That is, unless you believe the diversification Utopians have a plan to replace that $25 million with private sector development.

THE BOTTOM LINES

In these uncertain times there is indeed the possibility that New Mexico will face continued erosion of its federal funding, but the politicians of this state owe their people a fight--not a white flag of surrender labeled "diversification" that lets them avoid responsibility and  blame "Washington" for everything gone wrong.

The message for this Governor and our congressional delegation in these most perilous times is simple:

Look in the mirror, put on your game face on and come out swinging.

Thanks for stopping by this week. Reporting from Albuquerque, I'm Joe Monahan.

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Thursday, May 09, 2013

More On The Connections Of La Politica In Campaign Money Lawsuit, Plus: Comfy Legislative Retirement Plan Resurfaces, And: Persona Non Pete; Domenici Snubbed in DC 

Democratic reader Theresa Trujeque thinks it was irresponsible for a Senior Alligator on Tuesday to call into question the allegiances of Dem House Speaker Kenny Martinez because his longtime friend and ex-legislative colleague Al Park is associating himself with GOP lobbyist/lawyer Mickey Barnett.

Democrat Park and Barnett's law firm are the attorneys for several contractors seeking to overturn ABQ's ban on campaign contributions from businesses that have contracts with city government. Lifting the ban--which Mayor Berry has been accused of violating--would help the GOP Mayor who decided against taking public financing for his campaign and is raising money privately. Here's Trujeque:

Joe, Your Senior Alligator should have facts to support the statement made before throwing stones at our Democratic leadership. Trying to connect the Speaker to the Martinez administration because he and Al Park are "friends" is not a responsible thing to do unless you have facts to support that allegation. So far, I have not seen or heard of any such facts. I have Republican friends but does that mean that I support Governor Martinez or any of her policies? Of course not. As a Hispanic woman, I think she is a big disappointment. I am surprised that you would even print such a thing. I believe that Al Park selling himself out to the Republicans is his own doing and does not involve the Speaker. 

Thanks for the thoughts, Theresa.

When a controversial corporate income tax cut is jammed through in the final seconds of a legislative session, deeply dividing the Democratic Party and was done with no debate, there is going to be plenty of speculating on how public policy is formulated in this state and the motives of the political players. These political relationships are fair game because they potentially impact all of us.

For example, we and others have noted in the past that Speaker Martinez served as the godfather to the son of then-GOP State Rep. Dan Foley and speculated how that friendship could impact public policy. Speaking of which....

DOUBLE STANDARD?

Foley
Will this news inhibit ex-Roswell GOP State Rep. Dan Foley from bashing public employees and the retirement plans that cover them? From the AP:

Voters booted Republican Dan Foley from office after a decade in the New Mexico Legislature, and within months he began collecting taxpayer-financed pension benefits--even though he was only 39 years old. By the time he turns 67 and qualifies for full Social Security benefits, Foley will have received nearly $450,000 in pension payments in exchange for the $5,000 he contributed to the plan while serving in the state House..New Mexico's unique and generous legislative retirement program has raised questions as lawmakers have trimmed pension benefits for some government workers, yet resisted scaling back their own program....Foley's yearly pension benefits are $13,254 currently.

Of course, the voters in Roswell who threw Foley out of office might joke that it was worth at least $450,000 to rid themselves of the once hyper-controversial lawmaker who now lives in Rio Rancho.

And if Dan held out any hope that he might launch a political comeback on the wings of the Tea Party, this news isn't going to get him much lift.

MORE CONNECTIONS

The connections of La Politica go on and on. Here's another dealing with that lawsuit to overturn limits on city campaign contributions. Dem mayoral hopeful Pete Dinelli has asked the federal court to allow him to intervene in the case. And who did the asking for Pete? Why none other than former two term Dem ABQ City Councilor Michael Cadigan---the ex-law partner of Al Park, who, as you know, is on the opposite side of this issue.

Cadigan helped craft the city campaign law in question while on the council. He is now in private law practice;

(Veteran ABQ photographer Mark Bralley was among a number of readers who pointed out the Park-Cadigan connection).

PERSONA NON PETE

Pete Domenici
Some stories speak for themselves and this one about 81 year old former NM GOP Senator Pete Domenici falls in that category:

Senate Majority Leader Harry Reid (D-NV) refused to meet with former Sen. Pete Domenici last week, citing the New Mexico Republican's bombshell revelation that he secretly fathered a son outside of marriage more than 30 years ago.

Domenici confessed his affair with Michelle Laxalt, daughter of Paul Laxalt, a former Nevada senator and governor of Nevada, in February. The son, Adam Paul Laxalt, now works as an attorney in Nevada. Reid and Domenici became close working in the Senate for over 22 years, but the revelation soured their relations.

“I don’t mention Domenici’s name anymore because of what he did to Michelle Laxalt," Reid told the Las Vegas Review Journal on Monday, adding that Domenici requested to see him last week. “I wouldn’t let him come and see me. But anyway, that’s another story.”

Domenici reacted this way from his DC home:

I have occasion to call [Reid] every now and then. Harry has been a longtime friend, and I'm sorry for what happened 35 years ago, and look forward to an opportunity to talk to him.

Pete celebrated his 81st birthday Tuesday. He's had better ones.

TECH SUMMIT?

ABQ reader Dr. Henry Casso writes:

Your frequent references to the dropping of federal and state jobs provides ample rationale for the convening of a summit on the use of technology transfer by our two US Senators. Retired Senators Bingaman and Domenici were the founders of technology transfer. There has been a shift in leadership at Sandia National Labs and Los Alamos Labs. There is a tendency to lack institutional memory. I suggest these two Senatorial offices convene a Technology Transfer Summit, explore its current use, past effectiveness and explore how, in these economically challenging times, this policy can effectively be used....Let’s wake up before it is too late.

And may we suggest, Dr. Casso, that Senators Heinrich and Udall serve some really tasty enchiladas with lots of red chile at the summit because this complicated stuff is hard to sit through.



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Wednesday, May 08, 2013

Lawsuit Over City Campaign Cash Rules Raises Eyebrows, Also: Radio Talk Wars For ABQ? And: Too Much Healthcare Charity?  

Al Park
The latest news on the mayoral front is a real eyebrow raiser. The story itself is interesting--a lawsuit has been filed by several city contractors to overturn the city ban on mayoral candidates receiving money from businesses or owners of businesses that have contracts with the city. The eyebrow raiser and what has Democrats talking is the attorneys who filed the federal lawsuit.

It was a team effort--stalwart ABQ Republican attorney Mickey Barnett's law firm was joined by none other than ex-progressive ABQ Dem State Representative and attorney Al Park. Yeah, we're off to the races on that one...

Overturning the contribution limit would benefit Republican Berry. Unlike Dem Pete Dinelli he did not opt to receive public financing of some $360,000. He is raising private money and at last count had banked $250,000. But he has run into trouble. $17,000 of those donations are being called into question because it appears the donors do business with the city--a no-no under the current law. (The full lawsuit is posted here.) (Dinelli had $200 in questionable donations and donated them to charity),

The lawsuit says the restrictions are unfair, saying unions and others who do business with the city are free to donate. The Barnett-Park suit--if successful--could pave the way for Berry to start taking contractor money in time for the October election. but it would also give Dinelli and mayoral hopeful Paul Heh the opportunity to accuse Berry of pay-to-play and soil his choir boy image. Dinelli's campaign is already on it:

With all of the issues of this election breaking against the Mayor--our flailing economy first and foremost--the Mayor's political cronies have launched a desperate attempt to buy this election and cling to their power...They want to legalize pay-to-play contributions and put the corporate special interests in charge of our government to maximize their bottom line. That's simply unacceptable....

PARK'S PLACE

Park lost his bid for the Dem nomination for an ABQ Public Regulation Commission seat last year after it was disclosed here that his law firm raked in hundreds of thousands in state contracts from the Republican administration of Susana Martinez. Since then he has been dubbed a DINO--Democrat in name only.

Park is a close personal and professional friend of NM Democratic House Speaker Kenny Martinez who, like Park, is an attorney. Park was a key ally of Martinez when Martinez, in 2006, launched a coup attempt against then House Speaker Ben Lujan. It failed, but Martinez did become Speaker following the 2012 election.

Speaker Martinez lost progressive support in March when in the final seconds of the legislative session he gave in to the Governor and rammed through a corporate tax cut. His ties to former GOP State Rep. Keith Gardner--now the Guv's chief of staff--were called into question by Dems outraged by the Speaker's cave in.

Now Park surfaces again in the Republican camp and that's going to keep the spotlight on the Speaker and how much behind the scenes footsie he is or isn't playing with the R's.

A Senior Alligator comes with the suspicions:

Al Park teaming up with Mickey Barnett should be a giant red flag for Democrats statewide. Once a star of the progressive cause, Park sold out to the Martinez Administration for a lucrative legal contract when he was chairman of the House Judiciary Committee and it cost him his race for the PRC. The question Democrats needs to ask: Is Park the only one? Why were other supposed progressives so quick to push through at the last minute of the legislative session the Martinez corporate tax cut?  Was it out of principle? Or do Democrats need to start following the money with their own leadership? 

In La Politica, you always follow the money.

PRESS BASHING

Some  Dems are not only running against the R's, they're also taking on the newspaper. From Bernalillo County Dem Party Chair Ana Canales:

The Republicans are beginning their attacks on us, even digging up old news. They may have the Albuquerque Journal and the money on their side but we have the votes. The number of registered Democrats is greater than the number of registered Republicans. So why do they win? Because we do not get our Democrats out to the polls. Let's start our own attack campaign but let's do it by having block parties, house parties, precinct meetings, etc. 

TALK WARS?

Some of our media Alligators are speculating that if conservative talker Rush Limbaugh leaves 770 KKOB-AM radio at the end of the year, we could get one of the market's FM stations going to an all-talk format with Limbaugh as its centerpiece. That could be the first serious competition in decades for #1 ranked KKOB.

Limbaugh, as we blogged this week, is having conflicts with Cumulus, the company that recently purchased KKOB and where his broadcast is carried weekdays. The talk FM format has been growing in popularity.

Limbaugh has had some problems with advertisers since a boycott was launched over remarks he made, but still has a large core audience.

TOO MUCH CHARITY?

Blogging New Mexico
Reader "D" writes of our comments this week on the very long patient wait times at publicly funded University of New Mexico Hospital:

...Your statement about the free health care at UNMH becoming "nearly Third World care" is patently absurd. There are two tiers of health care in the U.S., and millionaires don't have to scrum for appointments at the Mayo Clinic the way us working stiffs have to beg to get in to see a general practice doctor or a dermatologist. What "indigent" and "other" people receive at UNMH is somewhere between "excellent" and "better than what half the world can aspire to. That it takes a little, or a lot, longer to get your free treatment or surgery isn't going to keep this taxpayer up at night.

 Liberals act as if money can be pulled from thin air, and any limits on charity are an affront to humanity. Deep down inside liberals must know that you are picking the pockets of the hardest working citizens, to help the least productive among us. Is that noble? Sometimes I'm not so sure. 

...Let's keep some perspective. I've personally been furloughed, my coworkers laid off, and I will likely never see another raise even as my health care costs skyrocket, and more is asked of me at work. More health care for the charity set is way down on my list of priorities. (Love the blog).

We welcome your thoughts, musings, commentary, analysis and existential angst.

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