Even as his counterparts around the nation bow to the inevitable and trim their budgets, New Mexico Governor Bill Richardson remains impervious to arguments that he should do the same. Instead, he has launched a full-scale offensive against trimming state agency budgets under his control and that the Legislature mandated at its recent special session. He appears to be laying the groundwork for a veto of the budget fix by the Nov. 12 deadline. If he does, it will again put the executive and legislative branches back on a collision course.

Bill has trotted out his secretary of human services as well as his corrections secretary to warn that health services will suffer and prison closures will be needed to meet the Legislature's required 7.6 percent reductions in their budgets by June 30, the end of the current budget year.

But is that really spooking the public this Halloween week? They are already contending with a record 8 percent unemployment rate in ABQ, a statewide rate nearing 8 percent; a crash in housing and commercial real estate; a slashing of credit available to them and a plunge in the value of their retirement accounts. Furloughs--in which government employees are forced to take unpaid time off--may seem downright gentle to the thousands of New Mexicans ravaged by the most unforgiving economic breakdown of their lifetimes.

Still, the Governor does not budge. Of course, he is correct that in an ideal world the Legislature would give up $150 million of their pork projects, transfer that money to the General Fund and use that to make the 7.6 percent cuts. Maybe he even says that in his veto message, but it still does not address the fundamental crisis the New Mexican government faces.

The budget shortfall for the year that begins July 1, 2010 is estimated to approach as much as $1 billion, when you include the drying up of federal stimulus money. And the $150 million in cut capital outlay would only solve this year's budget woes. The argument is that we need permanent savings. What about next year and the year after that?

LINES IN THE SAND

The Guv isn't the only one drawing lines in the sand. Republicans insist on no tax increases--not realistic--and liberals insist on nothing but taxes--also unrealistic.

The middle ground, as usual, is where the answer lies. The executive needs to come with a mix of permanent spending cuts and tax increases--now. It's too late to kick the can into the next administration. When the Legislature meets in January it will be charged with filling the budget hole still remaining for this budget year, and to draft a budget for the next year as well.

The media is reporting unchallenged the claims of the human services and corrections secretaries that the 7.6 percent budget cuts will result in calamity. But would it? Haven't these secretaries considered selective employee furloughs? Oops. Forgot. That word has been banned by Big Bill. Maybe someone will call in Auditor Balderas for a reality check to see just where these budgets can be cut without the dramatic consequences alleged by these political appointees?

What is clear that someone needs to prepare the state workforce for the pain that is to come in the ensuing years. That pain has already come in spades to Mr. and Mrs. New Mexico who we think will generously share their morphine drips.

ANOTHER WAY

Legislative insiders say the Guv does not need to force legislators to disgorge their capital outlay projects (although many of them need to be) to meet that 7.6 percent budget cut to agencies under his control. They say Big Bill still has most of the $58 million in federal stimulus money he was allotted and can divert that money to make up for the cuts. Some of it has been appropriated for local government use, but has not left the treasury. They say he could re-target those funds.

OPINION IMPACT

The Guv's political acumen is his strong suit. We're sure the dog and pony show he is orchestrating about the impact of the budget cuts will probably meet with public approval. But the party will soon be over. The state Constitution mandates a balanced budget, and unless the Governor gets another job and is gone in January, he will have to face the budget crisis head-on.

The relationship between the branches of government is so poisonous now, we would not rule out a stalemate and a constitutional crisis that could endanger the state's standing in the financial markets.

Usually, these things have a way of working out before the breaking point is reached, but these are not usual times. During the special legislative session neither the Governor or the Legislature could force themselves to administer the necessary pain. Until you see signs that both sides are willing to deal, don't rule out the worst case scenario.