Tuesday, January 20, 2009BARACK OBAMA HAS BECOME THE 44TH PRESIDENT OF THE UNITED STATES; NM LEGISLATURE TO CONVENE AT NOON; REGULAR UPDATES HERE ON HISTORIC HAPPENINGS![]() ![]() Obama will remember New Mexico's role in his election fondly--he carried the state with nearly 57% of the vote--but the state took a hit with the new White House when Governor Richardson had to withdraw his nomination to be Obama's Commerce Secretary. It was a federal grand jury's pay to play investigation involving a state contract that did Bill in. Because our Guv casts such a long shadow over state politics, insiders wonder and worry whether--if at least in the short-term--the new president will be gun shy in appointing other New Mexicans to prominent posts. He takes office with none in his inner or outer circles. That leaves Democratic NM senior Senator Jeff Bingaman, the chair of Senate Energy, as the state's main policy liaison with the White House. DATELINE SANTA FE Richardson will watch the inauguration of the new president from the sidelines in Santa Fe while he prepares to deliver his State of the State address to the NM Legislature. The session is gaveled to order at noon today for a 60 day meet. Bill has already dubbed this the "year of fiscal restraint." The big question is how restrained it will be. State Senate Finance Committee Chairman John Arthur Smith, who has been ahead of the curve in forecasting the state's financial standing, sent politicos (and taxpayers) reeling last week when he warned that the state's revenue shortfall for the fiscal year that beings July 1 could reach a staggering $1 billion. Will the Legislature budget for a $1 billion deficit, perhaps raising taxes? Or will it rely on more optimistic forecasts, but risk putting off a day of reckoning if Smith's gloomy forecast proves correct? THE PARK PLAN ![]() Richardson was supposed to be on his way to D.C. by this time, but after leading the state during six years of a healthy economy he will now be around for tough times. The Guv and the Legislature seem close to a deal on how to handle the $450 million shortfall we face for the remaining months of this fiscal year. It is the budget for the next fiscal year--starting July 1-- where Bill may face choices that make no one happy. Can Richardson lead effectively in these new circumstances? He seems to have seen and done it all in politics, but not this. LEADERSHIP BATTLE ![]() We'll blog the results of the Pro Tem election as soon as we hear them. The AP's Deborah Baker has more on the leadership face-off and the upcoming session. PAY TO PLAY We can't say what it means, if anything, but feel it is worth noting that no indictments came down from the federal grand jury investigating New Mexico pay to play in the final days of the Republican administration. The Justice Department is now under Democratic control. A new New Mexico US attorney will be named within months and like Governor Bill, he will be a Dem. The indictment issue is not necessarily political. Each Justice Department has its own views on what constitutes pay to play and where prosecution is merited. How that impacts this investigation, we can't say, but our instincts tell us to keep it in mind. FOY FALLOUT The pay to play scam that Frank Foy, former investment officer for the state Educational Retirement Board, is coming under fire. It is putting some dents in Foy's allegations that Big Bill underlings pressured him to make lousy investments because the firms involved were contributing to the Guv's political accounts. It turns out Foy approved the $40 million investment he has cited as proof that he was politically compromised and which led to a $90 million loss. With pay to play the soup du jour, stuff is going to come crawling out from under the rocks, but some of it may get killed before it can move much. By the way, if you are a retired NM educator, or about to become one, the ERB says there are funds available to pay current and future retirees. Still, all of our state retirement funds have been diminished by the bear market in stocks. ABQ GOP State Senator Sue Wilson Beffort is concerned about their future solvency, and will raise the issue this session. Her oversight will be welcomed by those counting on the funds for their senior years. PEARCE ROBBED ![]() No, Heather Wilson was not seen in the vicinity of the restaurant at the time of the incident. E-mail us your news and comments, with a special invite to you wall-leaners at the Legislature to do so. (c)NM POLITICS WITH JOE MONAHAN 2009 Not for reproduction without permission of the author |
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