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

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

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

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

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

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

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

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

IMPACT ANALYSIS

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

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

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

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

NEWS AVALANCHE

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

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

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

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

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

ELECTION NEWS

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

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

Election results from around the state here.

ANOTHER ELECTIONS DIRECTOR OUT

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

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

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

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

Sens. McSorley & Ryan
The Special Session is already sinking. The proposal to up the tax on a pack of smokes by 75-cents was killed in the crib only hours after the session started Monday, perhaps foretelling the fate of the effort to partially reinstate the hyper-controversial food tax.

For ABQ Dem liberal state Senator Cisco McSorley this special and the budget pact conceived by the legislative leadership prior to kick-off is already headed for the ash heap of history:

I don't think it (the budget package) has the support to get out of the Legislature he declared.

It won't take much for Cisco's prediction to come through. If liberals coalesce with anti-tax Republicans the only motion that will pass is one for adjournment.

And the bizarre scheme the leadership cooked up to sneak a partial food tax through---wash your hands of it and make the cities do it--was already starting to stink up the Roundhouse like a burrito gone bad.

ABQ GOP state Senator John Ryan called the food tax ploy "creative confusion."

John, you're being charitable. How about "creative cowardice?"

The out of sync legislative leadership and the stubborn Governor are so misreading the public mood, they're going to have call in education boss Veronica Garcia to give them some remedial reading lessons.

The public wants business and others who benefited most from the crazy go-go years to shoulder their share of budget pain, but the capitol is being protected from the populist outrage like it was old Fort Marcy, not the people's Roundhouse.

McSorley and Ryan are about as far apart as you can get on the political spectrum, but both know you don't spray lysol on garbage to kill the smell. You have to throw it out. Someone grab a Glad bag. This budget deal needs to be sacked.

ON MESSAGE

Republicans seem to have the imagination of a scarecrow when it comes to solving the state's budget crisis. Their one trick pony is "no tax increases anytime." But politically they are getting the upper hand over the Dems. Their message may be unimaginative but it is clear as a bell. Their base knows where they stand. The Dems message--diluted as it is by dozens of differing messengers-- is about as meaty as turnip soup.

TIME TO "MAN UP"

Rio Rancho reader Joe Barela wrote to the state's lawmakers and told them it is time for the Legislature to "man up:"

1. Do an across the board spending cut for all agencies and projects. 2. Layoff all the State employees you have to, do it now, do it fast, as it is less painful that way. 3) Place a moratorium on educational spending.

If you take bold measures to resolve our budget problems then you just might get to keep your job...If you take bold measures, then the taxpayer might want to hear you talk about tax increases. Bold decisions mean that you have to “man-up." Got that?

We got it, Joe, but we wonder what the lady legislators do in lieu of "manning up."

MAMA LUCY RECALLED

David Salman, House Majority Leader from 1971 to 1978, died Monday. As the wires reported:

Salman was part of the so-called "Mama Lucy Gang," a coalition of Bernalillo County liberals and largely northern New Mexico representatives that controlled the House until the late 1970s...

Salman, 74, was in the House when Walter Martinez of Grants, father of present day Majority Leader Kenny Martinez, was Speaker of the House.

MORE ON DOMENICI DOUGH

We were peeling the onion on the first contribution report from GOP Guv candidate Pete Domenici Jr. last night and found that he raised a total of $260,000 since announcing his candidacy January 17. Domenici gave himself $50,000 and his father, retired US Senator Pete Domenici, gave him $5,000. The senator's former legislative director, George Romanos, also chipped in $5,000. The campaign reports that another $50,000 was raised from 10 Phoenix friends.

The state Democratic Party, seemingly on high-alert over the Domenici candidacy, came with the reaction to the report:

“Given all of his early gaffes and mistakes, it’s not surprising that Pete Domenici Jr. wasn’t able to raise as much money as he wanted,” said the party.

A spokesman for Domenici said they are delighted by the Dems reaction:

Their response is rooted in dreadful fear of losing the Governor's office.

Democratic insiders differ with some of their GOP counterparts and continue to bet heavily that Domenici will emerge June 1st as the GOP nominee. That's why the state Dems are hammering early and often.

INSIDER BASEBALL

On the handicapping front, the Pete Jr. camp is sounding increasingly pessimistic over its chances of getting 20% of the delegates at the March 13 GOP preprimary convention. That's the number needed to get an official spot on the June 1st ballot. Otherwise, you file additional petition signatures to make it on.

Most of the delegates, Domenici insiders say, were locked down during months of campaigning by their rivals and changing minds at this late date is not in the cards. The campaign is focusing more on the June 1 primary now, rather than the party convention.

Like some other candidates, including Dem Diane Denish, Domenici is releasing periodic fundraising reports even though the next required state report isn't due until mid-April. However, Domenici is not releasing how much cash he has in the bank or his campaign expenditures until that April report.

As we blogged yesterday, Domenici's fund-raising is decent compared to his rivals, but not enough to chase anyone out of the race.

RICH DAD

Here's something Dave Garduno and Doug Vaughan could use. "Rich Dad" is coming to ABQ.

A one time real estate icon, Vaughan is being investigated for running a Ponzi scheme. Garduno of restaurant fame owes the state nearly a million bucks in taxes. His restaurant chain is letting go of 100 workers as he closes two locations.

While business across the board continues to struggle, there's some optimistic news peeking through. The Angel Fire ski resort is reporting good traffic this season, saying things are slow during the week, but weekends are busy. Nothing against the skiers, but we prefer the hills at the Angel Fire golf course. But we'll all have to wait until mid-May to see them.

GAMBLING WOES

The bear market marches on inexorably. Now there's trouble in Raton getting the racetrack and casino there opened. We saw the planned Racino for Moriarty fall through last year as credit tightened. Are we in for a repeat? And is the state Gaming Control Board all over this as they should be? They keep extending the deadlines for the owners to get this deal moving.

A recent visit to Sandia Resort and Casino revealed a cost saving measure as the recession takes its toll on gambling revenues. Instead of posting a guard at the front entrance to greet visitors and help those needing assistance, the casino has now installed an automatic revolving door. Gone is the paid security officer.

DEAN'S SONG

And a final gambling note. Don't show this to your wife, but we laughed the other day (inappropriately, of course) when we heard Dean Martin sing:

A wife in Vegas take my advice, it's like going to China with a sack of rice.

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

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

Rep. Maestas
Democrats may be playing with political dynamite as they go into special session in Santa Fe today to try to resolve a budget shortfall for the year that starts July 1 and that could be as much as $800 million.

The dynamite sticks are a quarter cent increase in the gross receipts tax and a reinstatement of the taxon food while leaving untouched the tax bills of the state's most wealthy residents.

This will be the second bite out of the budget apple. Lawmakers failed to reach an agreement in the regular 30 day session. And if they've again underestimated the revenue picture, as has happened time and again, yet another special session awaits us later in the year. And maybe more trainwrecks, too.

All 70 members of the state House are up for re-election this year and there is nervousness among some of them over the direction of the NM Democratic Party. The state Senate--ruled by a coalition of Republicans and conservative Dems-- is locked down on not raising taxes on the well-off. In the recent regular session, the House passed a temporary surtax on high wage earners, but it appears to be off the table as the special starts today--or is it?

Some House Dems want it back on the table, fearing a backlash in the June primaries or the November election if Democratic voters see no difference in the economic policy between the two parties.

ABQ Dem State Rep. Antonio "Moe" Maestas points out it would take only 10 of the House Dems to join with the R's to block anything from coming out of the House. You have to think that means any kind of food tax is going to have a difficult time.

The newspaper reports on the latest plan on the controversial food tax : "Municipalities would impose their local gross receipts tax rate on the purchase of food items. The state portion of the gross receipts tax on food wouldn't be imposed, and the state would stop compensating cities for their lost food tax revenue. This change would generate about $71 million for the state.

Meanwhile, Maestas has sponsored a measure to slightly raise the tax brackets on the highest earning taxpayers that would bring in $70 million a year (For example, taxpayers with income of $250,000 to $500,000 would pay a rate of 5.9%). Maestas notes that the highest bracket is 4.9%--a rate that applies whether you are making $500,000 a year or $50,000. The ABQ West Side lawmaker wisecracked:

I've always wanted to break into a higher tax bracket. Under current law I'm unable to.

AN R ROMP?

Anxious Dems fear the R's will have a field day with any reinstatement of the food tax, even on junk food. They say that would be portrayed as a slap against working mothers who buy their kids a candy bar. Maestas agrees it's too hot to handle and besides, he rejects the notion of the state trying to get people to eat or not eat particular food items. "That's a nanny state mentality," he argues.

The food tax was killed in the recent session, but it's a favorite of Senate Finance Chairman John Arthur Smith who is also a refusenik when it comes to the surtax on high wage earners. The chairman's insistence on this perplexes some. His daddy was an itinerant road repair worker during the Great Depression. What would he think?

Any increase in the gross receipts tax will impact lower income households most. Soon to be Dem Guv nominee Diane Denish has come out in opposition to raising the tax, knowing she would be lambasted for it during the fall campaign.

But Denish and House Democrats who are on precarious political footing have no fall back position. If the Legislature approved that surtax on the wealthy as well as a small gross receipts increase, they could tell their base voters--thousands of low-paid working class New Mexicans and progressives--that they are indeed spreading the budget pain around. But what do they tell them when they don't?

A TRUE TEST

Democrats are facing their first true test on the tax issue in decades. They have been able to ride in the low-tax parade all these years because there was such an abundance of cash. Big Bill's 2003 rollback of the state's tax brackets was nearly universally embraced during the Great Bull Market. Now during this Great Recession, the Dems are being asked to pivot, but Richardson, aligned with conservative state Senators, is unwilling to make the move. And so far, Denish is also stuck.

Not that the Republicans aren't also suffering from myopia when it comes to taxes. No matter the economic environment they have a simple mantra of tax cuts all the time. But Democrats in the Legislature may be setting themselves up for a fall by keeping the GOP base vote out of their sights and punishing their own. Don't say we didn't tell you.

YES, WE NEED BIG CUTS
Rep. Miera
Of course, we need more than tax increases. We need a lot more spending cuts. But how do you do that when over half the state budget funds public education and the education lobby has a stranglehold on the state House?

Educators have opposed an even 1% cut in funding. And the Legislature has been woefully ineffective in eliminating the administrative overhead in the schools that is one of the longest running jokes in the state.

Which leads to the question: Why is ABQ State Rep. Rick Miera, chairman of the House Education Committee, included as a top representative in the budget negotiations between the House and Senate? That role is traditionally reserved for the legislative leadership and chairs of the finance committees. But there Friday was Rick front and center coming out of the Guv's office with House leaders.

If the reason he is there is because so much of the budget is education, then why isn't Senate Education Committee Chair Cynthia Nava part of the budget talks? Or is Miera's presence a sign of just how out sized the muscle of the public education lobby has grown?

We're just asking...

IF WE RULED THE WORLD

With the start of the special session today we find it timely for another of our periodic installments of "If We Ruled the World." However, it’s not that much different from previous editions, so forgive any repetition.

For brevity’s sake, we’ve deleted the parts about winning the lottery, getting the girl and mandating that all restaurants carry flavored San Pellegrino (in the can).

First, pass a surtax on high income taxpayers that generates $80 million a year, then approve a quarter cent increase in the statewide gross receipts tax that effects everyone and will take in about $125 million; Fix that corporate tax loophole for Wal-Mart and other big box stores, raising around $50 million a year. We're now up to around $255 million.

If we must, do a quarter, not a dollar tax, on a pack of cigarettes. And beef up tax collections on out of state taxpayers that Speaker Lujan has talked about. And continue to redirect unspent capital outlay money to the general fund. We did about $150 million during the regular session. Let's go for another $100 million during the special. We still have well over a billion dollars of capital outlay, much of it unspent, sitting in state coffers.

We're now at about $400 million, and it's time for the spending cuts--if we ruled the world. We'd start with the sacred cow--public education. Cut 3% across the board and finally force the downsizing of the bloated administration at APS. If we also have to cancel some less popular school sports, so be it. The educators are probably right that the rest of it is messy and painful, but it's not exactly picnic time for thousands of New Mexicans on the firing line out here. Share the pain.

If we ruled the world we'd have the Legislature once and for all get rid of the political appointees that have become like leeches on the body politic. Cut several hundred and make it effective July 1st. While they're at it, make the state hiring freeze real--with truly no exceptions other than for real public safety concerns.

State employees are going to have take more furlough days--we have five this fiscal year--up that to eight or nine for the next year--and raise the amount they kick in for their retirement plan by another percent or so, but exempt workers making under $40,000 a year.

We'll stop there because we just realized we will not be ruling the world (geez, that stuff wears off fast) but you get the idea. Good luck, Santa Fe...

DOMENICI'S DOUGH

The bottom line when Pete Domenici Jr. reports his first round of fundraising tonight is that he is on track for having enough money to make a major TV buy for the June 1st primary.

Domenici's campaign says the GOP Guv contender raised about $200,000 since he entered the race January 17th. That's a respectable, but far from a scare the hell out of em' total for the son of retired US Senator Pete Domenici. But with his name ID already off the charts, Domenici will need less media money than a Susana Martinez or Allen Weh.

Still, the Alligators wonder, is this fella with the famous namesake capable of hitting a double or triple? So far, it's been all singles at best.

Martinez reported at the end of the year that she's raised about $300,000, but it took her five and half months compared to Domenci's $200k in six weeks. Wealthy businessman Allen Weh hasn't reported lately, but back in October he announced a loan to himself of over $250,000. He had over $370,000 cash on hand back then. Doug Turner also wrote himself a check for over $200,000. Janice Arnold-Jones last reported raising about $50,000.

Domenici's famous father has helped him raise money. And the young Domenici has grown more blatant in recent days in using his famous name as a campaign prop.

Several analysts we spoke with said there will come a time when voters begin judging Domenici separately from his father. However, they said that is more likely to happen in a general election turnout. Republican primary voters may not be as discerning, giving Domenici Jr. the benefit of the doubt as they hunger for a winner and a name that they know and like.

With about $200,000 raised, it is clear that Domenici will not go away, even if he fails to garner 20 percent of the delegates at the GOP preprimary convention March 13. He would file additional petition signatures, making him eligible for a ballot spot--and then start spending that money.

Domenici's money report comes on the heels of an independent poll showing him as the strongest contender against Dem Diane Denish (45-40). The poll and the money he has raised should aid him as he searches for elusive uncommitted preprimary delegates.

WHERE WE'RE HEADED

Weh has the money and can saturate the airwaves and mailboxes. But does he have the message and personality? Political pros like Turner's profile for the general election, but he has to make the 20 percent mark at the preprimary or he may be gone. Martinez is showing persistence, but needs more money to get herself known and then go after Domenici. Same for Arnold-Jones.

Domenici's foes tried to raise expectations for him and claimed they expected him to pick up $500,000 in six weeks. That, of course, was an unrealistic number especially given this economic backdrop. One question they have that will be answered later today: Did Domenici loan himself much money to reach the $200k mark? If he did, his detractors are sure to point it out.

As we've blogged, Domenici has stumbled out of the gate, but he ambles along with that neon name flashing wherever he roams. Expect the opposition campaigns to hit hard to disrupt that stride shortly after the preprimary.

CARILLO COMING BACK

We already have a spirited contest for the Dem nomination for Bernalillo County sheriff and now we're going to get one for county assessor. Former three term assessor Mark Carillo, who we mentioned has been eyeing the race, is now all in. Carillo, 56, says he will challenge incumbent Dem Karen Montoya who is seeking the nomination for a second term. The office traditionally goes Democratic in November, although not always.

The office has received a lot more attention than normal because of the controversy over "tax lightning," in which the property tax of new homeowners skyrockets.

MAYOR ACTION

Santa Fe Mayor David Coss is at 52% in the final New Mexican poll before tomorrow's city election. Challenger Asenath Kepler garners 28%. City Councilor Miguel Chavez scores 8% and undecided comes in at 9%. Coss has led throughout the campaign, but he kept the heat on in the final days, sending out a piece of lit that twice mentioned that Kepler, a former city manager, was a Republican. Santa Fe is one of the most Democratic cities in the state. The poll was taken last Tuesday and Wednesday

In Rio Rancho, Mayor Tom Swisstack is being challenged by former Mayor Jim Owen. We haven't seen anything that would lead you to believe Swisstack won't win re-election.

BETTY FIORINA

That's a cool retro picture of Betty Fiorina, the three term NM Secretary of State who died last week. If you're of a certain age it may remind you of the style of your mother or grandmother.

Democrat Fiorina served eight years. She won two terms at two years apiece and, in 1970, was the first SOS to win a four year term. One of her sons, Tom Fiorina, became a well-known Santa Fe municipal judge. He recalls his mother as a pacesetter for women in politics back in her day, as well as a lover of dogs.

She probably would have preferred that we mention the dogs first.

Betty Fiorina was 90.

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