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Thursday, December 12, 2024

Other Voices: Defending The New Tax Breaks For Veterans And Defining Universal Basic Income  

More property tax breaks veterans? Who would say no? Well, not many as it turned out at the November election when two more property tax breaks for veterans were approved by voters. 

That approval has drawn more scrutiny since then. Several of our readers and experts criticize the cuts for not helping homeless veterans of which there are many. 

More significant, they point out the tax breaks will shift more of the tax burden to other property owners to make up for lost revenue including seniors on fixed incomes. In Bernalillo County that could amount to an extra $100 a year in property tax per homeowner, says the County Assessors Office which did not take a position on the amendments. 

After all that, it's time for the flip side of the coin as reader Bob Carroll takes up the cause in favor of the amendments. 

Joe, I read with dismay your December 4 article on the recently passed Constitutional Amendments on tax breaks for veterans. As you noted, the amendments were approved by a substantial majority of the voters, 83% for HJR 5 and 73% for HJR 6. The amendments recognize the sacrifice that the veterans have made for the good of our nation. It is also important to note that neighboring states have even more generous provisions for veterans (Texas, for example).  The Department of Defense, in making its determinations on which bases will receive more missions, and which bases will remain open, places a heavy weight on which states have military friendly laws for service members, veterans and their families.

The first Constitutional amendment (HJR 5) ties a property tax reduction for veterans based on the percentage of their service-related disability. The previous provision only granted an exemption for veterans with a 100% service related disability. If you had a 60% or 40% disability, you were out of luck.  Under this bill, if you have a 40% disability then you will get a 40% reduction on your property taxes.  

About a quarter of New Mexico veterans have some level of service-connected disabilities. The average reduction in the tax bill for these veterans will be about $767 and will cost taxpayers about $14 a year (see legislative FIR, or Fiscal Impact Report). Other states have similar deductions for partially disabled veterans (Texas, for example).  The FIR assumes that every veteran takes advantage of this amendment, which never happens, and the impact is likely to be far lower.

The cost of the second amendment that reduces the bills that veterans receive for property taxes is de minimis. The amendment provides that the exemption, which was pegged at $4,000 in 2006 to be deducted from the taxable value of the property, will be raised to $10,000 and will be tied to the rate of inflation in prospective years. Keep in mind that we are talking about a $10,000 deduction on the value of the property, not on the tax bill. 

New Mexico has 142,000 veterans, and about half claim the property deduction. A $10,000 reduction in the valuation of a $300,000 house in Albuquerque (to $290,000) doesn’t mean much financially to the homeowner. It means a lot more to a veteran living in a $40,000 trailer.  The average reduction in actual taxes paid by veterans will be about $180. This is an annual burden on the general population of $34, which again assumes that every veteran will apply for the exemption.

I won’t argue that our tax system is perfect or that a different approach might benefit more people. I do maintain that recognizing our veterans and enacting provisions that are in line with other states is important in keeping our veterans here in New Mexico. 

UBI

Reader Maureen Skowran is enjoying the discussion of a Universal Basic Income but. . .

Hi, Joe. I am loving the support for guaranteed income, such as from Mitchell Freedman on Nov. 21 and Ken Tabish on Dec. 4. But Ken is misleading by calling his proposal “universal basic income.” “Universal” means “all” – and giving the money to only families with children is clearly not all. 

“Universal basic income” has a well-established meaning. According to GiveDirectly, which runs one of the longest-standing basic income programs, it means

"Universal, serving all members of society; Basic, enough to cover basic needs; and an Income, an unconditional, recurring payment guaranteed for recipients’ lifetimes. To truly meet the definition of “basic,” the payment must also be sufficient to cover fundamental needs."

This isn’t a critique of the proposal’s merits but a call for clarity about what it actually represents.   

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Wednesday, December 11, 2024

Haaland To Leave Interior Soon But Rep. Stansbury Makes Play For Power On House Committee That Could Enhance State's DC Standing, Plus: Broadband And A Phrasing Problem 

Rep. Stansbury
She must feel confident because after teasing a run for the position of Ranking Member on the House Natural Resources Committee ABQ Congresswoman Melanie Stansbury has made it official and is in the race.

She faces fellow Democrat and House veteran Jared Huffman, 60, who represents a district north of San Francisco. Stansbury, 45, was first elected at a special election in 2021. Her district is mostly ABQ but also includes large sections of low-populated rural counties to the south.

The Ranking Member of a committee leads the minority members and usually becomes chairman of a House Committee when the chamber switches party control. 

Republicans will maintain the chairmanship of Natural Resources for the next two years since they scored the House majority at the November election but the margin is very close and could flip to the Dems in 2026. The ranking Democrat would then be expected to assume the coveted chair.

The stakes are high for New Mexico which has Deb Haaland as Secretary of Interior but who will be leaving when Trump comes in. The full Democratic Caucus will decide the Ranking Member positions next week.

A source close to Stansbury says Huffman may have an inside edge but "she’s picking up new members and every day feeling better."

One reason Stansbury may have gotten off the fence and made the run was this endorsement from Arizona Rep. Raúl Grijalva, the current Ranking Member who is not seeking the post again:

I am proud to endorse my friend and colleague. . .(She) has made her mark as a strategic and tenacious advocate for advancing environmental justice, strengthening tribal sovereignty, and securing water for communities in the drought-stricken West. Her tenure as Ranking Member on the Oversight and Investigations Subcommittee proves her leadership in standing up to polluting industries and holding them to account, even when Democrats don't hold the gavel. “The next four years will be a fight against Trump’s ‘drill, baby, drill’ plan. House Natural Resources will be the frontline of this fight, and I am confident Rep. Stansbury is the right person to lead this critical committee.

In her announcement Stansbury did not directly mention the President-elect:

My life’s work at the forefront of these land and water issues and climate justice is not just a job—it is part of who I am and why I am here. As we prepare for the 119th Congress, we must meet the moment and be prepared for the attacks that will undoubtedly come, while continuing to work with our colleagues across the aisle to get things done. To do so, we will need leadership who will lead with strength, integrity, grit, determination, and heart.

TRUMP FACTOR

Rep. Huffman
For his part, Huffman, 60, said:

Huffman emphasized the incoming Trump administration’s likely targeting of Biden-era environmental regulations:“My district experiences some of the worst impacts of the climate crisis including extreme drought, devastating wildfires, flooding, sea level rise, toxic algal blooms, and biodiversity loss.

Both Stansbury and Huffman are steeped in policy with Stansbury's expertise including arcane water law, environmental impacts and tribal relations. 

She has an uber-progressive record on social issues that causes consternation among moderates but like Senators Udall and Bingaman in their day she appears to be drawing bipartisan support for her other interests that are vitally important to the state.

To that end, southern Dem Congressman Gabe Vasquez suggests a pragmatic path for Stansbury should the leadership role become hers:

I believe that Congresswoman Stansbury has an ability to cut more deals, to be able to hopefully have a working relationship with Republican leadership in that committee, and not be so necessarily defensive about what the Trump administration is doing but find common ground.

PHRASING PROBLEM

Reader Mark Fidel writes of the Tuesday Vox Populi blog: 

Hi Joe: Jim McClure’s comments aren’t wrong, but he needs to work on his delivery. “ So wireless internet will bring connectivity to more New Mexicans more quickly, but could force broadband office employees to find honest work when the project is completed” By his description, the work that the broadband office’s employees are doing currently is not “honest“? Perhaps they should just go find “honest“ jobs now and let somebody else figure out the broadband problem. 

McClure's phrasing was indeed misleading. 

The issue isn't the employees of the Broadband Office but a policy towards satellite internet that needs to be made more flexible here and in DC. Their announcements of grants for laying fiber in rural New Mexico that will often take years to complete seems disconnected from the reality of what our rural kids could have at their fingertips now--high-speed, reliable satellite internet access. The Broadband office is proposing a $70 million accommodation of that viewpoint. That's promising but should be the beginning not the end.  

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Tuesday, December 10, 2024

Time For Another Edition Of Reader Vox Populi; They Write Of Broadband, A Booze Tax, Property Tax And Too Many Universities  

Time again for the always popular Reader Vox Populi where our insightful readers hold forth.

Reader Jim McClure is in the same corner we are when it comes to satellite internet delivery for under-served rural areas:

 Joe, I’m glad to see you watchdogging the progress of broadband deployment. It’s great to see the state broadband office opening the door a little to satellite. The issue I see is that satellite and wireless systems can be deployed quickly, after which the project team could be disbanded. The Broadband Office currently employs 30 people with the prospect of more when construction actually begins. The state’s commitment to the slow pace of fiber optic construction may give these people at least a decade of job security. So wireless internet will bring connectivity to more New Mexicans more quickly, but could force broadband office employees to find honest work when the project is completed. The state clearly has to keep its priorities straight. 

Reader Freddie Lopez turns thumbs down o the proposal to raise the state tax on alcohol as advocated for by a trio of Democratic legislators in our Other Voices blog of December 5:

Hi Joe, I believe Democrats are making a huge mistake pushing for this during the next legislative session. No one is denying the devastating impact alcohol abuse has on our state, but raising taxes is not going to solve anything. People are still going to purchase alcohol and some will continue to abuse it in spite of the potential taxes on it. Our legislators should focus on investing in sobriety and treatment programs for those struggling with alcohol addiction. Also, New Mexicans don’t want to hear about taxes being raised with inflation continuing at high rates.

ANOTHER NO VOTE

Longtime reader John Gniady also says this is no time to raise the booze tax which was defeated at last year's legislative session:

It’s no wonder that passing alcohol abuse legislation of the type advocated for in the Other Voices blog of has gone nowhere given the positions of the legislators supporting such legislation. 

There is the assertion that: "It is unconscionable that Native Americans, Hispanic, and Black individuals in the state report the lowest prevalence of alcohol use yet experience the highest rates of alcohol-related death.” In other words, decreasing alcohol consumption through higher taxes does not have the desired effect of reducing the harms to society. That is reason enough to defeat this approach. It’s ineffective. This also conflicts with their other assertion: "One of the most powerful ways to do this [prevent alcohol abuse] is by increasing alcohol taxes, which the Centers for Disease Control and Prevention recommends.” Which is it? 

Also, the source of several additional assertions such as, "Although the harms to society from alcohol costs the state’s economy nearly $4 per standard drink, the state collects $0.04 to $0.07 in taxes per standard drink.” are not referenced so the reader cannot come to an independent conclusion.

If I were in the legislature, I would push for strengthening existing alcohol abuse laws by adding to the minimum requirements of jail and/or prison sentences where it is clear alcohol abuse was involved. The problem is the judicial branch of state government is “soft on crime" of all types. Harsher sentences for all kinds of crime would be a wake-up call that society’s tolerance for crime be it alcohol abuse or anything else has diminished. 

VETS TAX BREAK UNFAIR

We get this from a retired county assessor who wishes to remain anonymous as they comment on two property tax breaks for veterans that were approved by state voters at the November election: 

As a former Assessor, I agree with those opposed to the tax breaks awarded to veterans in the two approved constitutional amendments. I had retired before this issue came up, but why is it the property tax that is always impacted? If the state wants to help veterans (which I agree) it should be for all veterans, not just homeowners--and that should be done with the state income tax, not property tax. Bernalillo County tax revenues will be strongly affected by these new tax cuts.

Bernalillo County Assessor Damian Lara, who took no position on the amendments, did say he was concerned about their impact on elderly homeowners. He says the assessed property tax rate on BernCo homes will now probably go up by $50 to $100 a year.

WNMU SCANDAL

Andre Larroque of Cedar Crest comments on the expense account scandal we blogged of Nov. 26 that has engulfed Western NM University at Silver City and its President Joseph Shephard:

Hi Joe, The current system of individual public four-year colleges in each corner of this vast state seems antiquated while potentially complicating the necessary oversight to prevent them from becoming the personal fiefdoms of top administrators. We should ask ourselves if full four-year institutions are even appropriate in sparsely populated and less-economically healthy areas. Many potential students may choose not to get a full degree just yet and need to hold down a real job or help take care of local family members to support livelihoods. Perhaps an effective expansion and strengthening of our community colleges would better enhance educational opportunities and options in the more remote places while still keeping these parts of the state from becoming ‘college deserts’.

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Monday, December 09, 2024

Early Christmas Present: Plan To Redo State Fairgrounds Gets Guv Support; A New Tingley Coliseum (Finally?), Plus: Savvy Old-Timers Surround MLG At Fair Announcement, Also: Barela Elected NMGOP Chair 

MLG
A couple of early Christmas presents have brightened the season, at least from your blog's perspective.

First there was that somewhat surprising state decision to pump $70 million into satellite internet delivery for under-served rural areas. Second, there was the Governor's announcement that she is throwing her weight behind the idea of relocating the State Fairgrounds and repositioning the land for housing and other development. 

We won't put a bow on either gift yet. Final approval of the $70 million in satellite internet cash is pending but seems likely. As for the fairgrounds plan, MLG gave it a big boost but it needs added momentum to become reality. 

This latest proposal (there have been others) started with the Legislature when they approved $500,000 for EXPO NM to come up with a new master plan. One aspect of the possible redevelopment has been flying under the radar:

Ideas to be considered include: Building a new, modern arena that has the capacity to support large scale concerts and events.

That proposal to finally replace the long out-of-date Tingley Coliseum has been a staple of a long list of needed capital improvements mentioned here since the oil boom started. A new and modern Tingley (the old name is fine) would be especially welcome to the youth of the city and state. They see little in the way of major amenities coming their way and that accelerates the speed at which they depart. (And sparkling new Fair facilities for 4-H youth and other rural interests would be an added plus.)

Maybe next year the early Christmas presents will be having the plans to move the Fair and add a new arena and mixed housing well underway. What say you, Santa?

ERIC SERNA REDUX

Eric Serna (KOAT)
We were surprised to learn from the Governor's news conference that Eric Serna, once a headliner name in La Politica, is now chairman of the Fair Commission. When did he get on there? Well, way back in 2019 when he was appointed by MLG. We must have been hitting golf balls that day.

Serna is an attorney who chaired the NM Corporation Commission for 14 years and was Superintendent of Insurance for five years. Old-timers will remember him as the Democratic candidate for the northern congressional seat in 1997. That's when Republican Bill Redmond pulled an historic upset of Serna (with a Green Party candidate splitting the  Dem vote) and filled the seat left vacant when Bill Richardson became ambassador to the United Nations. 

Serna was a controversial pick because he was seen as part of the northern "Old Guard" who often brushed up against ethics rules. The smell of an upset was in the air on the eve of the election with then UNM professor F. Chris Garcia opining: 

The thing that can defeat Eric Serna is for Democrats, mainly Hispanics who are usually the strength of the Democratic Party, to stay at home either because of complacency or dissatisfaction. 

Marty Chavez
Those words were prescient. Serna lost the race to Redmond by 43 to 40. In turn Redmond was defeated for a full two year term in 1998 by Democrat Tom Udall. No Republican would ever again take the northern seat which came into being in 1982.

'97 was the end of Serna's political career but he went on to success in the private sector as a lawyer specializing in insurance management and regulatory consulting. 

Now Serna, thanks to MLG, is back at an historic time to help reposition the Fair and a large swath of SE ABQ for the future. He may be just the the guy for the job, given the political skills the administration needs to pull off the deal. There are a multitude of parties to pacify and Serna is no amateur. 

For Serna this is a chance at a strong last act, one that could bring sweeping changes--the kind of changes he would have had if his dream of joining the Congress had not been dashed those many years ago. 

Former ABQ Mayor Marty Chavez, MLG's infrastructure advisor, is leading the administration's efforts to relocate the Fair. His considerable political acumen will be fully tested as he works to pull off what would be the most significant public works project of the Governor's two terms. Working with Serna should be no problem as both pride themselves on being masters of the Movida.

BARELA WINS

As our Senior Alligators predicted, Amy Barela Saturday easily won election as the new chair of the NM Republican Party. The results of the GOP State Central Committee vote:

Amy Barela--157; John Brenna--58; Mark Murton- 46 Mick Rich- 44; Robert Kwasny-3 

Barela, 49, a former chair of the Otero county GOP and a current county commissioner there, succeeds longtime chairman Steve Pearce. Before her victory, Barela said:

Now, more than ever, we must fight for New Mexicans—defending their constitutional rights, supporting our legislators in their efforts to combat out-of-control crime, and ensuring that law enforcement has the support they need. We must also bring awareness to the challenges New Mexicans face, including the state of our schools, rising prices, and the healthcare crisis. These are New Mexican issues and addressing them starts with voting differently to bring real change to our state.

Barela is squarely in the camp of the Pearce/oil wing of the state GOP as opposed to the wing of former Gov. Susana Martinez and her acolytes. Unifying the party has been impossible the past decade. Now it's Barela's turn to try.

Hessel Yntema, city attorney for Roswell, replaces Barela as the party's First Vice-Chair. All GOP convention results here.

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Thursday, December 05, 2024

Other Voices: Raising Tax On Booze Will Be Back As Lawmakers Again Tackle State's Worst In Nation Ranking For Alcohol Abuse  

Rep. Kathleen Cates
With the state showing no signs of backing away form its worst in the nation status for alcohol-related deaths, legislators will have another go at raising alcohol taxes in the next session. This Other Voices column was co-authored by state Senator Antoinette Sedillo Lopez and state Reps. Joanne Ferrary, Kathleen Cates, Liz Thomson and D. Wonda Johnson.

We are committed to working with our legislative colleagues in the upcoming session to pass laws that reduce alcohol consumption and provide stable funding to address the problems caused by alcohol in our state. Our state’s future depends on it. 

In the 260 days since the last attempted alcohol tax increase during the 2024 legislative session, about 1,400 people in New Mexico have died from alcohol-related causes — more than twice as many as those who have died from opioid overdose. 

Drinking too much alcohol is linked to serious issues in our communities, like gun violence, crime, domestic violence, and car accidents, as well as health problems like breast cancer, stroke, and hypertension. 

New Mexico has had the highest rates of alcohol-related deaths in the country since 1997, and we need different strategies to tackle this public health crisis. We won’t improve health, reduce health disparities, lower death rates, or reduce crime without taking action on alcohol misuse. 

One of the most powerful ways to do this is by increasing alcohol taxes, which the Centers for Disease Control and Prevention recommends. The funds generated by New Mexico’s current alcohol taxes are insufficient to support programs aimed at combating alcohol misuse, and the current tax rate does not effectively discourage drinking. This is largely due to the fact that New Mexico has not raised alcohol taxes in over 30 years. 

Although the harms to society from alcohol costs the state’s economy nearly $4 per standard drink, the state collects $0.04 to $0.07 in taxes per standard drink. These harms affect under-resourced individuals and communities at a much higher rate and at greater intensities. It is a moral imperative that we address these health disparities.

 It is unconscionable that Native Americans, Hispanic, and Black individuals in the state report the lowest prevalence of alcohol use yet experience the highest rates of alcohol-related death. As state lawmakers, we must take immediate action to address this public health crisis and improve the lives of all New Mexicans. 

In the 2025 legislative session, we aim to pass laws that will: 1) reduce alcohol consumption by 5% to 10% and 2) generate $200 to $250 million each year to fund public health programs for prevention and treatment of alcohol misuse. There are multiple ways to accomplish these goals. 

For instance, we could achieve these goals by raising existing alcohol taxes by $0.25 per drink as has been proposed previously. Alternatively, adjusting existing excise taxes for inflation since 1994 and adding a sales tax at the time of purchase could also accomplish these objectives. The excise tax is based on the volume of the beverage, while a sales tax would depend on how much people spend on alcohol, and is thus a more progressive tax. 

Experts believe these changes could lower drinking rates and provide steady funding for prevention and treatment. This specific funding stream is crucial since our state’s economy relies heavily on oil and gas, and during tough economic times, behavioral and public health services are often cut first. Furthermore, allocating money from the general fund alone would have substantially reduced impacts on the most important component–decreasing population-level alcohol consumption.

 In order to safeguard the health and future of New Mexico, it is imperative that we take bold action now by implementing higher alcohol taxes, ensuring that our communities receive the support they need to combat this ongoing public health crisis. We must come together to find a path forward for this critical legislation.

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Wednesday, December 04, 2024

State Taxpayers Deserve A Break As Oil Boom Rolls On But What Kind? Plus: WNMU Scandal Again Raises Issue Of Too Many Colleges, And: New Tax Break For Vets Unfair? 

Proposals are expected to surface in the next legislative session to cut or even eliminate state income taxes for households earning less than $40,000 or thereabouts. Recent guest columnist Mitchell Freedman also recently broached the topic of providing a Universal Basic Income (UBI) for New Mexicans. (Some pros and cons here.) Reader Ken Tabish responds:

Joe, there was mention about the state taking the Alaska approach in using oil and gas revenue revenues to provide a Universal Basic Income for New Mexicans. I am all for this in lieu of more tax cuts or even a cost of living credit due to our energy largess. My recommendation is to tie the UBI to families with children, rather than a straight payout to people over 18 and making under $40k. 

During the pandemic we saw how direct payments to families with children from the Feds had a direct impact on reducing the rate of child poverty in the country and New Mexico as a whole. Although costly, this proved valuable in assisting low income families with children in meeting high costs. Can we as a state with massive surpluses do something directly to improve the quality of life for our most vulnerable citizens? I say yes.

TOO MANY SCHOOLS

The expense account scandal that has engulfed Western New Mexico University President Joe Shephard and reported on here recently draws the attention of reader Alan Schwartz:

Coincidentally the current issue of New Mexico Business First has the "List" for New Mexico Colleges and Universities. Missing from the list, WNMU. Why? I can only conclude they did not respond to the inquiry. As for the WNMU Regents, if they are not concerned about the university's anemic graduation rates why should they be expected to question the expenses of their president? The highest WNMU graduation rate I found was 36.2% with other sources citing lower numbers and six year graduation rates in single digits. 

Being from California, where the university and state university systems have 10 and 23 campuses respectively with graduation rates of 92.3% (UC) and 82.5% (CSU), I never understood this proliferation of autonomous regional colleges. I'm thinking you have addressed this in the past. 

Thanks, Alan. Over the years we have indeed covered the problem of the state having too many higher educational institutions. It's been discussed since all the schools were permanently established by the state constitution at statehood in 1912. Here is the passage mandating them:

The university of New Mexico, at Albuquerque; the New Mexico state university, near Las Cruces, formerly known as New Mexico college of agriculture and mechanic arts; the New Mexico highlands university, at Las Vegas, formerly known as New Mexico normal university; the western New Mexico university, at Silver City, formerly known as New Mexico western college and New Mexico normal school; the eastern New Mexico university, at Portales, formerly known as eastern New Mexico normal school; the New Mexico institute of mining and technology, at Socorro, formerly known as New Mexico school of mines; the New Mexico military institute, at Roswell, formerly known as New Mexico military institute; the New Mexico school for the blind and visually impaired, at Alamogordo, formerly known as New Mexico school for the visually handicapped; the New Mexico school for the deaf, at Santa Fe, formerly known as New Mexico asylum for the deaf and dumb; the northern New Mexico state school, at El Rito, formerly known as Spanish-American school; are hereby confirmed as state educational institutions.

VETS BREAK UNFAIR?

Finally today, a subject we raised on the radio during our Election Night coverage--those two constitutional amendments providing more tax breaks for veterans and that were approved by large majorities. We go back to attorney Mitchell Freedman:

I am concerned with the two amendments that will essentially negate property taxes for mostly well-off veterans who own their homes. The amendments do nothing for vets who rent and especially nothing for vets who have home insecurity or outright homeless. The effect of these two amendments will be to significantly lessen property tax revenue, which often funds public schools. Multiple assessors and treasurers have said the rest of us may have to pay more property taxes to maintain current revenue flows. 

One solution may be to create a progressive tier of property taxes so that homeowners with smaller or relatively small homes, based upon square footage, should pay less than those with mansions. Property taxes are flat or regressive taxes, not progressive taxes, and more akin to a sales tax which is also regressive. 

I totally get we should want to honor our vets. However, I do not think these constitutional amendments honor anyone. The amendments create a favoritism unfair to so many including vets who are not as fortunate to own a home.

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Tuesday, December 03, 2024

Back On The Broadband Beat: State Gives Satellite Internet A Nudge But Still Gives It Stepchild Status,Plus: Rail Runner Blows Through $8 Million On Wi-Fi Before Seeing Satellite Light 

Starlink's Elon Musk

The Broadband Office made a point of telling the Legislative Finance Committee that the $70 million they are asking for to provide high speed internet service via satellite to remote rural areas is only a temporary measure--until they can be served by expensive fiber optic that will in many cases take years to reach homes--if ever. From the Office:

Over a five-year period while high-speed internet lines are built, the money would pay for a $600 satellite receiver to get connected, along with $30 toward the $120 total monthly bill. The program is called Accelerate Connect New Mexico.

A couple of things.

How many of those households who get good speed from state-subsidized satellite service from Starlink will want to sign up for fiber--if they ever get the chance--unless it is accompanied by a state subsidy?

The future of satellite internet is faster, much faster. While the Broadband Office correctly states that fiber is the "gold standard' today, will that be the case in the years ahead? Unlikely. 

Starlink has filed an application with the FCC to approve changes the company says will make satellite internet ten times faster than today's speeds. (The FCC will soon be in the hands of pro-satellite commissioners.)

The Broadband Office says federal money pledged for fiber can only be diverted by an act of Congress. That's not so outlandish as they might thing considering Trump's party now controls the Congress and Starlink owner Elon Musk is leading a commission on cutting waste and fraud in the federal government.

Of course the major telecom companies want to hang on to their lucrative contracts to build expensive fiber which is taking years and years. But money from the Feds could run out or be diverted if high speed and much less expensive satellite service is proving satisfactory.

So what does the state do when Starlink announces higher speeds that meet or even surpass fiber? Continue to spend millions on digging trenches or throw in the towel and make satellite a permanent fixture--not a temporary one? 

BROADBAND FIASCO

It's not as if the state can't make the broadband roll-out a fiasco if it doesn't get it's game-plan in order. Look at this multi-year mess that cost taxpayers millions and as detailed in an investigative report from KRQE:

What do taxpayers have to show for a ten-year, multi-million dollar investment in Rail Runner Wi-Fi? Piles of discarded cables, routers, antennas, transmitters, and miscellaneous electronic do-dads. “It upsets me. I do not want to misuse taxpayer money,” said Dewey Cave who heads up the Rio Metro Regional Transit District. “I was surprised that it didn’t work. But, you know, we are going to find somebody accountable.” . .Taxpayers have shelled out some $8,000,000 for nonfunctioning Wi-Fi equipment on the Rail Runner. “It was a waste. It’s a pile of rubbish,” Rio Metro’s Robert Gonzales said. There is a positive end to this story. Thanks to new technology, the Rail Runner is now equipped with a relatively inexpensive satellite Wi-Fi system. Rio Metro officials say it’s working “perfectly” with no complaints. 

That's another good example of why satellite internet for rural NM should be the first priority for expanding broadband, not an afterthought or "temporary" solution.

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Monday, December 02, 2024

Front-Runner Emerges in Race To Replace Pearce As GOP Chairman; Amy Barela Of Otero County Said To Have Inside Track 

Amy Barela
Otero County Commissioner Amy Barela has the inside track in the race to become the next chair of the NM Republican Party, according to GOP sources.

Former US Rep. Steve Pearce has led the state's minority party since 2018 but at 77 is now retiring, leaving NMGOP First Vice-Chair Barela as the favorite to succeed him. 

The new leader will be selected this Saturday by over 500 members of the party's State Central Committee at a meeting at T or C. 

Having previously been elected Vice-Chair by many of those delegates gives Barela the edge, report observers.

She says on her social media that for the past decade she has "been a steadfast community leader." As for her priorities if elected, she declares: 

Now, more than ever, we must fight for New Mexicans—defending their constitutional rights, supporting our legislators in their efforts to combat out-of-control crime, and ensuring that law enforcement has the support they need. We must also bring awareness to the challenges New Mexicans face, including the state of our schools, rising prices, and the healthcare crisis. These are New Mexican issues and addressing them starts with voting differently to bring real change to our state.

Barela was elected to the Otero commission in 2022 and is a bedrock southern conservative. She won the seat held by Sheriff Couy Griffin, the Cowboys for Trump co-founder who was removed from office for the role he played in the the January 6 violent uprising at the nation's capitol.

Barela is also a former chair of the Otero county GOP and a small businesswoman who owns a towing company and a wrecking service. Her election as chair would keep the leadership rooted in Trump country.

She is not without competition. ABQ contractor Mick Rich, who was the losing GOP nominee against Dem US Senator Martin Heinrich in 2018, is also running. Other candidates are John Brenna, the Valencia County GOP chairman, Robert Kwasny of ABQ and Mark Murton, a Sandia Lab's management retiree. State Sen. Josh Sanchez announced for the post but has since dropped out.

Rich is signaling that if he does not win the chairmanship he may join the 2025 race for ABQ mayor, joining incumbent Tim Keller and radio talk show host Eddy Aragon, who was defeated by Keller in 2021 and has announced he is running again.

SHUTOUT

The GOP is currently shut out of all statewide executive elected offices as well as the Governor's office and the NM Supreme Court. 

The Democrats sport large majorities in the House and Senate and unlike the past there is no conservative coalition with Dems to give the minority party a larger voice.

There was a glimmer of hope for the party when Trump did better than expected this year with Hispanic and Navajo voters. The new chair will have to work to translate that shift to local races especially the '26 Governor and US Senate contests. 

HARRIS MEMORIAL 

A memorial service has been announced for former US Sen. Fred Harris who died recently at 94:

A Memorial for Fred will be held on Saturday, December 14, 2024 at the National Hispanic Cultural Center Education Building, 1701 4th Street SW in Albuquerque, NM at 2 PM.

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Wednesday, November 27, 2024

Talk about Close; Official Results Show State Turnout For '24 Election was Nearly Identical to 2020, Plus: Happy Thanksgiving 

Election '24 is in the books, made official by the State Canvass Board this week. It turns out the closest race of all did not have any candidates. That was the race to beat the turnout of the last presidential election in 2020. 

And talk about a hot contest. 

This year 928,290 New Mexicans cast general election ballots. In the last presidential election year in 2020 turnout was nearly identical with 928,230 votes cast. That's a tiny difference of 60 votes. Talk about a cliff-hanger!

Unlike political contests no one was biting their nails over the closeness of the turnout contest, but the finish was still thrilling for the political junkies. 

As for the percentage of registered voters taking part, this year official numbers say it was 67.13 percent. In 2020 when slightly fewer were registered to vote turnout was 68.2 percent. 

Neither mark comes close to the all-time modern record of 2008 when Obama was elected president. That year a whopping 833,365 votes were tallied for a record 70.4 percent of all registered state voters.

A surprise from this election was the popularity of the new law allowing voters to register and vote on the same day. 25,485 did so. That was a challenge for some election officials and will have them working to make the process smoother in the future.

BY THE NUMBERS

Final official results from the SOS:

Total Registered Voters eligible to participate in this election – 1,382,761 Total Voter Turnout – 928,290 (67.13%) Absentee Turnout – 111,403 (12.00%) Early Voting Turnout – 556,281 (59.93%) Election Day Turnout – 252,515 (27.20%) Hand Tally/Provisional – 8,091 (0.87%) Use of Same-Day Voter Registration (Early Voting and Election Day) – 52,358 Election Day SDR transactions – 25,485 

RECOUNTS

The State Canvass Board--composed of the Governor, Secretary of State and Chief Justice of the NM Supreme Court--ordered automatic recounts in two close contests, including House District 57 in Sandoval County. GOP Rep. Catherine Cullen holds a 130 vote lead over Dem hopeful Michelle Sandoval. While qualifying for an automatic recount, a margin of that size is rarely overturned. The Board also ordered an automatic recount for an at-large position on the Los Alamos County Commission.

BEATING THE LINE 

Campaign consultants for Dem state Sen. Moe Maestas are pleased with the final results. They say the District 26 ABQ Westside lawmaker received more votes than either Sen. Heinrich or Kamala Harris. Maestas hails from a heavily Hispanic area, a group Trump improved with this election. Maestas  represented the area for years as a state rep. He was appointed to fill a senate vacancy and now will serve his first elected term.  

HAPPY THANKSGIVING

This is our 21st Thanksgiving in this space (yikes!) and we're grateful to be able to wish you Happy Thanksgiving and thank you for making this the #1 NM political blog over these many years. Knowing how busy life can be today, we are appreciative of everyone who takes a moment to tune in. (If we keep it up, we just might become a tradition. :)

Happy Thanksgiving, New Mexico.

Reporting from Albuquerque, I'm Joe Monahan. 

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Tuesday, November 26, 2024

President Joe Needs To Go And Not The One In Washington; Financial Scandal At WNMU Has President There Pressured To Resign, Plus: The Dems And The Hispanic Vote 

Yard Sign
Should someone--like Senate Finance Committee Chairman George Muñoz--put Western New Mexico University and the taxpaying public out of their misery and force the resignation of school President Joseph Shepard, or will there be even more reports of the president's outrageous and unaccountable spending abuses? 

Shepard is paid over $$350,000 a year and has been president of the Silver City-based university since 2011. He has taken liberties with the school's expense account far beyond proper boundaries and his onetime celebrity wife Valerie Plame has gone along for the ride. 

State Auditor Joseph Maestas says as much in his review and now the State Ethics Commission is taking a look.

Still, the recalcitrant and tone-deaf WNMU Board of Regents clings to the tarnished president, putting them on course for a showdown with the Legislature. (The Governor, who appoints the Regents, could also put pressure on the Regents to give Joe the boot but hasn't indicated she will.) 

Shepard
Overlooked in the scandal is that Muñoz and company hold the purse strings to WNMU. That leverage may be needed to convince the WNMU Regents that their President has gone off the rails and send him to the Mustang showers.

Shepard and and Flame are lucky that a DA is not looking into the mess and are able to head for the exits without skidding. But time is not on their side. 

WNMU boosters are hoping Santa Fe does what it does best and uses that power of the purse to get the blindfolded Regents and their wayward President to see the light--and the door.

 LIVIN' LARGE WNMU STYLE

WNMU spent $25,500 in taxpayer money to send six people to the Ritz-Carlton, Rancho Mirage, a resort in the scenic desert of Palm Springs, California. The auditor’s report says that figure was part of a total of $363,525.99 misused as part of the university’s “wasteful” and “improper” spending. . .Examiners. . . found that the university spent more than $214,000 on 402 domestic and international trips that violated its own policies, along with nearly $150,000 on university credit card transactions that also broke policy. . . . WNMU President Joseph Shepard has often traveled with his wife, former CIA agent-turned-author Valerie Plame, and with members of the WNMU Board of Regents, visiting faraway places like Zambia, Greece and Spain in the name of courting international students and their out-of-state tuition dollars.  

ROBINHOOD

Reade Ron Nelson pushes back against last week's Our Voices column from progressive Mitchell Freedman:

Hi Joe, Freedman writes: "I will be pushing our representatives to ensure nobody making $40,000 or less should be paying any state income tax--plus those earning over $175,000 should be paying 7% on the margin and those making over $500,000 9% on the margin.” 

Hint: this isn’t progressive economics, it is the old Democrat version of Robin Hood, robbing the rich to pay the poor.  

THE LATINO VOTE 

The question du jour for Democrats is how do they stop Hispanic voters from drifting towards the Republicans as many did in the November election. Arizona Dem US Senator-elect Ruben Gallego has some thoughts:

What about Latino men, specifically, who moved away from Democrats in a striking way for the second presidential cycle in a row? Latino men feel like their job is to provide security for their family, economic security and physical security, and when that is compromised, they start looking around. What happened post-pandemic with inflation, Latino men felt that no matter what they did, they couldn’t get economic security for their family because the prices were so damn high. Mentally speaking, Latino men believe they could always work their way out of anything. Oh, if I want to buy this, I’ll just add extra hours or I’ll just cut here. I’ll just work here. And I think for the first time in a while, they felt that they weren’t doing that and they weren’t providing it. And the future, to them, seems bleaker also for the kids. 

THE BOTTOM LINES

Dem Rep. Eliseo Alcon, 74, who announced his resignation from his western NM House seat over health-related issues over the weekend, now says he suffers from liver cancer and is in hospice care. We wish him well. 

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Monday, November 25, 2024

Veteran State Lawmaker Eliseo Alcon Resigns And Liberal Legend Fred Harris is Dead At 94 

Rep. Alcon
Veteran Democratic State Representative Eliseo Alcon of District 6 in Milan has resigned his seat because of health issues, confirms his son and political consultant David Alcon who told us: 

On Saturday Rep. Alcon submitted his retirement application to PERA and his notice of retirement to the Legislature.

Alcon made it official in a letter to the Secretary of State.

The reason for the sudden departure? Alcon has liver cancer and is under hospice care. He will turn 75 in January.

Alcon, one of the few moderate Dems remaining in the state House, was first elected from his two county district--Cibola and McKinley in western NM--in the 2008 election. He won his bid for a a ninth term at the November election with 59 percent of the vote.

Alcon was employed as a miner and union foreman at the Kerr-McGee uranium mines and as a magistrate judge. He served in the U.S. Army during the Vietnam War. 

In 2019, Senator Heinrich presented Alcon with a Bronze Star he earned, but never received, for his service as a combat medic in Vietnam. 

Alcon, chairman of the House Labor, Veterans' and Military Affairs Committee, has been an advocate for veterans at the Roundhouse, helping to push through constitutional amendments that aided them. He was also instrumental in the creation of a suicide hotline for veterans. 

In addition, he was a major voice for state funding for Navajo Nation chapters in his district as well as for Zuni Pueblo. He was also supportive of labor causes whose unions consistently endorsed him

Alcon's seat will be filled by an appointment from the Governor with the county commissions of Cibola and McKinley counties submitting nominations. The seat can be expected to be filled by a Democrat.

FRED HARRIS 

Fred Harris, the gregarious and consequential former Senator who had stints as chairman of the national  Democratic party, died over the weekend at the age of 94. 

The NYT obituary detailed his life and times, including his 1976 presidential run and the many other facets of public service of the native Oklahoman who embraced New Mexico when he came here in the early 80's and stayed for good.

ABQ attorney Bob McNeill, 85, was part of a Monday morning breakfast club with Harris where politics was always on the table. He recalled this anecdote:

When he was running for President he drove a bus emblazoned with a large logo that said: "Road to the White House." 

He told me: "When I was campaigning and driving across Indiana, a lady rolled down her window and shouted, "Fred, you're going the wrong way!"

Harris was a liberal Democrat with a notable streak of populism that won him national acclaim. We found him dispassionate when it came to analyzing the events of the day no matter how emotional the atmosphere. No wonder his UNM poly sci classes were a major hit. 

It was a high honor to have Harris as an avid blog reader as well as a listener to our long-running Election Night broadcasts on KANW 89.1 FM. He once told me:

When the coverage comes on I close the door, turn on the radio and listen to you guys.

If that doesn't keep you on your political toes, not much will. 

Harris was humble about his contributions but his lifelong public service and insightful writings about the nation gave him the status of great American and New Mexican. That's a hurdle very few cross and earned Fred Harris a chapter of his own in the never-ending story of La Politica. 

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Thursday, November 21, 2024

Other Voices: Eliminate State Income Tax For Lower Income Households, Make Code More Progressive And Look To Alaska On Excess Oil Dollars 

Mitchell Freedman
The idea of eliminating the state income tax for New Mexico's lower income households is catching on in the wake of Democratic and independent voter defections to Donald Trump. In this edition of Other Voices, longtime Rio Rancho attorney, author and progressive Mitchell Freedman argues that the state needs to do more than just cut taxes:

Economically-oriented progressives like a progressive income tax. The New Mexico income tax system is, sadly, a mostly regressive income tax system, and needs to be reformed. Right now, a New Mexican wage/salary earner is paying between 4% and 5% income tax, whether the earner is making $30,000 or as much as $200,000. 

That is much more flat than progressive. Most people who call themselves economically conservative like a flat, not progressive, income tax system or oppose any income tax at all (as in right wing Texas and Florida). 

As an economic progressive, I will be pushing our representatives to ensure nobody making $40,000 or less should be paying any state income tax--plus those earning over $175,000 should be paying 7% on the margin and those making over $500,000 9% on the margin. 

I emphasize "on the margin," because, in my lifetime, our news media--and too many government class teachers-- have been awful in teaching people about marginal taxation rates, which means the rate one pays rises only after reaching different levels of income. So, a millionaire pays the same tax sum on the first $50,000 earned that a person making $50,000 annually earns, and so on. 

As I look at the slight increase in progressive tax rates in the legislative bill last year, most, but not all, progressive Democrats supported that bill. It was mostly Republicans and conservative Dems who opposed making the tax rates more progressive. So, let's not confuse readers into thinking the vast majority of Republicans, who are no longer anything but right wing, would support making our state's income tax system more progressive in its function. 

Even if they supported cutting income taxes at the lower rate, most would fight like hell against making well-off and wealthy people pay a higher rate on the margins, which, if they blocked the increase on the well-off and wealthy, would recklessly leave less revenue coming into the state overall. 

And maybe we can do the same for corporate tax, as that tax starts at 4.8% for the smallest of businesses and all the way up to $500,000 net income. That is really a flat tax. The tax only rises to 6.9% for the biggest companies. I can definitely see some room for progressive tax rate improvement in state corporate income taxation, too. 

The other thing NM should consider, since oil production output is not lessening, is to go the Alaska route, and give each New Mexican, 18 or over, $2,000 a year from the oil revenue. Universal basic income (UBI) here we come! 

And who knows, maybe a Republican who claims to be a populist may join this Bernie Sanders Democrats in supporting a truly progressive income tax and corporate tax--and UBI. I dare to dream! 

MORE TAX TALK 

Reader Maurreen Skowran, a BernCo Dem party ward chair, comes with this:

Joe, the idea of eliminating state income taxes for people earning less than $45,000 a year would be a great boon to New Mexico’s lower-income residents. But the state can do even more. I propose to accompany that tax cut with a refundable Cost-of-Living Credit to target those with the greatest need. 

This plan would support both working families and those who can’t work, such as new mothers and people with disabilities. The Cost-of-Living Credit would provide up to $1,000 for those making less than $25,000, $750 for those between $25,000 and $35,000, and $500 for those earning between $35,000 and $45,000. 

Together, these measures would cost around $250 million annually — a manageable figure given New Mexico’s surplus from oil and gas revenue.

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