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Monday, February 07, 2011Energy Industry Now Playing Defense; How Gas Crunch Could Change Political Game, Plus: Our Readers--Expert And Nonexpert--Weigh In On the Big Story It's the unexpected that can change the direction of public policy as fast as a flip of a coin and that makes political sport as fascinating to watch as Super Bowl Sunday.So it is in New Mexico this week as all of a sudden we see an energy industry that has gone from being on top of the political world with a new and sympathetic governor to one that is going to be playing defense in the wake of a natural gas and electric outage that forced thousands out of their homes or into a triple layer of long johns. Never mind that the outages came amid bitterly cold temperatures that we see once in a generation, if ever. The finger-pointing and blame game will be in high gear. And there's nothing wrong with that. We make things better in New Mexico and America by questioning our performance, even if it is put to the test under extraordinary circumstances. Although the problems were centered with the utilities delivering the energy, we don't hesitate for a moment in saying that the fallout is going to cover all aspects of the industry. That's because the push for deregulation of all sorts is now going to have its own energy shortage. For the better part of a year and a half oil and gas interests have dominated the energy debate, decrying the environmental "Pit Rule," becoming the #1 industry contributor to Republican Governor Susana Martinez and fighting any efforts to repeal tax breaks that total over $130 million as the state and its budget struggle through an unrelenting recession. The energy crisis for the energy companies comes in the middle of an industry media campaign touting the number of jobs and the amount of tax revenue it pays to the state. Mr. and Mrs. New Mexico are happy for that, but not before they have turned up the heat in their humble abodes and had their first cup of hot morning coffee. That the industry is mighty important to New Mexico and deserves a place at the public policy table is not in dispute. The state needs oil and gas revenue like never before and for 80 years the industry has been a good neighbor. But rarely does a blatant political tilt toward (or against) one industry last long. But who would have thought it would be the weather that would make the playing table more even? THE FALLOUT The new chairman of the state House energy committee, Brian Egolf (D-Santa Fe), an aggressive questioner of the industry, wasted no time. He set an oversight hearing on the shortage for 8 a.m. today. Last week Republicans walked out of that committee claiming Egolf had called a biased and unqualified witness against oil and gas.There will be no walking out in Santa Fe today. New Mexicans want answers--from both Republicans and Democrats. Let's see if the committee gets the right questions asked, or will it all be dismissed as a fluke of nature? A bunch of other hearings and inquiries can be expected over the events of the memorable and frigid days the state endured. The Public Regulation Commission will hold hearings. Governor Martinez promises an investigation, and she's going to have to be careful as her campaign donation list will be made an issue if she tilts too much. (Oil and gas contributed $807,000 of her $6.9 million in campaign contributions). She may try to use the shortage to recite the "drill, baby, drill!" mantra, but in light of the recent traumatic events, don't count on that resonating. And then there's the question that arises again in the aftermath of the deep freeze--how close are the regulators to the regulated? Northern Dem Congressman Ben Ray Lujan comes first with the federal angle, asking the Federal Energy Regulatory Commission (FERC) to take a look. His district, including Taos, Questa, Espanola and Raton, were especially hard hit by the shortage. As we mentioned above, while the oil industry was not directly involved in this weather-energy drama, the smart money says the outages will make the public more skeptical toward the overall energy deregulation agenda. In other words, don't expect that "pit rule" to go away anytime soon. In fact, a bet that way is as safe as the one you made on Green Bay beating Pittsburgh. VOX POPULI Our reader email revealed how quickly the mood can go sour when citizens start shivering and go unshowered. We weren't very critical of Governor Martinez's initial handling of what we called her first "mini-crisis." But that was hardly a view shared by all. We still think Susana gets a passing grade, but never mind us. Jean Reid of Placitas fires first:Joe, you wrote Friday: "...Martinez did impart a basic confidence that probably left most citizens satisfied, even as they hunted for their long lost thermal underwear." Excuse me? To make such a statement I assume you have taken a shower sometime in the last three days. Most of us in Santa Ana, Bernalillo and Placitas have not. As of 10 AM Sat. 9 percent of service to Santa Ana and Bernalillo and 11% to Placitas has been restored. Three days! The Governor's "emergency declaration" stated that propane truck drivers could work longer hours - what do propane deliveries have to do with natural gas service? We should turn down our thermostats? Thanks, but NM Gas is doing that for us. No platitudes about how concerned she is, how she is working frantically to solve this problem... Your third-worldish and Texas comments were were spot-on. But the questions that many of us in Placitas have (and can't find quick answers to) include why doesn't NM have its own gas supply, why doesn't NM (and apparently TX) have back-up systems to prevent this, and who is going to pay for this: the reverse 911 calls, all the techs coming from other states, etc. Somehow I doubt that we are going to get an apology and a rebate from the gas company for the inconvenience. NOT MUCH SYMPATHY But another reader writes and says the folks in Placitas should look in the mirror: We have reached capacity, there have been no new power stations or major improvements in many, many years. You sow what you reap. DATELINE TAOS Taos was one of the hardest hit towns because it is at the end of the natural gas pipeline. Governor Martinez visited there Friday, but she did not get much sympathy from Dem activist and local lawyer Helen Laura Lopez. She also thought our initial analysis of the Guv's performance was off the mark:Ace Hardware In Taos did more than the Governor and acted faster. They brought in 1200 space heaters from Colorado Springs Thursday night and stayed open til 11. Joe, you didn't get cold enough to give the Governor's weak "too late to the party" performance a more critical eye. Big Bill was good at emergencies. He would have been outside in his winter gear checking on people as an example for others, after he sent the National Guard to the rural communities with water and blankets. (No one reported that when the electricity goes out, community water goes out too.) Up here it was not a mini-crisis. It's the real deal. Gov. Martinez did on Saturday mobilize 50 Army National Guard members to help restore gas service in the North. We did characterize the gas shortage as a "mini-crisis" because at its peak it impacted 30,000 residences, not 300,000. But we get it. If you're out of a job, the economy is in a depression. And if it's your home without heat, it's a crisis. As for not getting cold enough to look at the story with a critical eye, we note that our own domicile suffered burst pipes and several shut-offs of heat and water. But fear not. We promise to shower thoroughly before going to Starbucks later today. NORTH DAKOTA VS. NEW MEXICO Another reader wanted to talk about this explanation by El Paso Electric for the company's inability to deliver electricity down south during the record cold: This is a once-in-a-long-time cold freeze," (El Paso electric spokesman) Souza said. "Our area hasn't experienced something like this in years. This isn't common for our area. We knew it was coming, because we'd heard reports from the National Weather Service...so in preparation we tried to bring some of our generation units out of maintenance mode, put them to work, but the cold freeze, it was just too much and everything froze. The instrumentation froze." Our reader retorts: "So how come the instruments work in states like North Dakota? Sounds like El Paso Electric got a few of their parts on the cheap." SPIRO'S SPIN We asked several of our readers expert in the natural gas area for their comments. Longtime energy investor and ABQ Republican Spiro Vassilopoulos comes with an explanation that those investigating this shortage are going to want to pursue:My guess is that cold weather in the Northeast "pulled" (from a price stand-point) the natural gas to higher net-back markets. What does that mean? In anticipation of colder than normal weather in the Northeast, gas buyers rented temporary pipeline transportation capacity and bought natural gas on the cash market. Temporary capacity is that portion of the fixed percent of the line capacity (that is permanently subscribed to by a gas producer or utility) that is rented out to another buyer to temporarily transport his gas. I suspect that the NM Gas Co. blundered by renting out a portion of their subscribed capacity and got caught with their pants down. You mean it was an inefficiency in the "free market" that contributed to our woes, Spiro? Well, that's a reminder of why we have regulation. WARD'S WAY Ward Camp is a veteran industry consultant who is a former GOP candidate for the NM Public Regulation Commission:Joe, The problem is the gas company's infrastructure. If you look at New Mexico Gas Company's lines, the Taos area is the end of the line. This has been a problem for at least 20 some odd years and many times in the past the pressure has gotten too low... The problem can be rightly blamed, in part, on the NM Public Regulation Commission. The PRC has not allowed a sufficient rate of return on such projects for the gas company to proceed. As you know the company does not make money on the gas, it earns a rate of return on its facilities. The PRC in its efforts to "protect" the consumer has imposed extremely low rates of return historically on the company (why do you think PNM dumped them?). This has starved infrastructure expenditures that become readily apparent when we have severe weather conditions... Thanks, Ward. But if you're right, who pays for this additional infrastructure? Can the ratepayer be expected to shoulder all of the burden? We question how many of those customers would consider the company having "extremely low rates" as you assert. MEDIA NOTES TV viewers checking in here reported that KOAT-TV was the only station to carry Governor Martinez's mid-day Thursday news conference on the natural gas shortage live, and we blogged it as such. But KOB says it also carried the remarks. It appears what happened is that KOB joined the news conference moments after KOAT and viewers switching back and forth saw only KOAT coverage in the initial moments. The intense competition in TV news continues, and our Alligators are keeping score. This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Friday, February 04, 2011Natural Gas Shortage Makes For Martinez's First Mini-Crisis, Plus: Energy News Has A Third World Feel; How To Prevent A Repeat? Governor Martinez's first mini-crisis began to melt away as more mild weekend temperatures began asserting themselves in temperate New Mexico. But the natural gas shortage that afflicted a large swath of the state during a nearly unprecedented polar plunge did give her occasion to issue her first "state of emergency" declaration, even if that sounds more important than its actual impact.At mid-day Thursday, with as many as 30,000 homes and businesses starved for heat from the rare arctic cold, the Guv took to the network airwaves for a four minute appearance (KOAT & KOB aired it live; KRQE deferred but all three had solid coverage. When it comes to weather and/or crime, you can't beat TV news). It was interesting to see the first female Governor assert command and control. She appeared well-briefed and reasonably confident, although she started haltingly. Hitting stride, she dispensed information and advice that was mostly common-sense, but probably reassuring to those shivering. It was the first time since her inauguration that voters and nonvoters alike took more than a passing interest in state government. While not imparting a sense of gravitas, Martinez did impart a basic confidence that probably left most citizens satisfied, even as they hunted for their long lost thermal underwear. THIRD WORLDISH Still, the New Mexico news had a third-worldish sound to it as the natural gas shortage dragged on into the evening hours of Thursday, forcing yet another shutdown of the public schools and much of government for Friday. That the problem appears to have originated over in Texas made the news harder to swallow. Even if this is only a once in a generation event, Governor Martinez needs to join with Senator Bingaman, chairman of the Senate energy committee, the heads of the electric and gas utilities, appropriate legislators and other relevant state and federal officials to get to the bottom of the shortage and see what can be done to avoid a similar one in the future. The Public Regulation Commission (PRC) will no doubt get involved, but their record is spotty at best when it comes to serving the state's consumers. Besides, this is a federal-state issue. Build an emergency back-up system? At what cost? Martinez has repeatedly called for transparency and accountability in public affairs. Let's see her apply that to the natural gas shortage by having some good old fashioned public scrutiny on what went wrong and why. AT THE SESSION Meanwhile, at the semi-silent Legislature, the heat was on, but not much political heat. There is a feeling afoot that this 60 day session is more like a 30 day meet, as noted in the ABQ Chamber of Commerce newsletter:The inactivity of the session seems a bit like a 30 day session where the only job is to pass a budget and go home. A 60 day session allows all legislators to introduce anything they want to; all bills are germane. In a 30 day session, the Governor must agree to any bill introduction which is not budget- related. So, most believe this session will continue to mosey along and eventually get a budget passed and a few other things passed and killed and call it a day. And the reason it feels like one of those shorter sessions is simple: there's no money to spend or squabble over. It's all about cutting. And the amount that it appears we need to cut--about $200 million right now--is not the kind of number that is causing widespread panic and consternation. Government at all levels here has entered a period of quietude as a result of the Great Recession which has taken up residence here like it's at one of those extended stay hotels. SEEMS ABOUT RIGHT Sen. Griego State Senator Phil Griego is yelling "time out on the set!" when it comes to the controversy over the state's tax rebate program for Hollywood. With conflicting studies on the economic impact of the 25% rebate, Griego's call for an interim committee to come with an authoritative study before the rebate is tampered with seems about right. He proposed:...an interim Film Investment Committee to review and analyze the Film Tax Credit. The Committee will look at the advantages and disadvantages and recommend legislation for any policy changes. "Let's hold off before we do anything and really study the issue, then make a determination...whether 25 percent is too much and we have to go back to 15 percent." Griego said. But even if the tax credit is left untouched, some feel the aggressive opposition to it may have already damaged New Mexico's film industry and that Hollywood will be more reluctant to shoot here. We hope they're wrong. Another measure making the rounds at the Roundhouse would increase the transparency under which the industry operates. Approval of that could help keep the film rebate untouched for the time being. NORTH TO TAOS "It feels like you're outside of the United States." So went one of the descriptions of Taos, heard in this video report of the northern New Mexico town on ABC's Good Morning America. Thanks for stopping by this week and for making us New Mexico's #1 political web site. We appreciate it. This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the auth
Thursday, February 03, 2011How Cold Is It? It's So Cold Jack Schmitt Is Praying For Global Warming! And: More On How Our Politicos Are Coping With This Week's Ice Age How cold is it?--It's so cold Governor Martinez was seen snuggling with Majority Leader Sanchez! --It's so cold House Speaker Lujan is having hot tea with the Tea Party! --It's so cold instead of handing out cold, hard cash, Roundhouse lobbyists are giving lawmakers hot apple pie! --It's so cold the ABQ Apple store introduced the iParka! --It's so cold we saw a politician with his hand in his own pocket! (Johnny Carson) --It's so cold First Gentleman Chuck Franco is grilling his baloney sandwich! --It's so cold State Auditor Hector Balderas is wearing a toupee! --It's so cold Sam Bregman gave Javier Gonzales some of his hot air! --It's so cold Lt. Governor Sanchez offered to fix leaky roofs for free! --It's so cold State Rep. "Lucky" Varela changed his nickname to "Icy!" --It's so cold Sen. John Arthur "Dr. No" Smith started a bonfire with all bills raising taxes! --It's so cold Governor Martinez loaned Big Bill her personal space heater! --It's so cold Darren White let Mayor Berry back into his office so he could stay warm! --It's so cold that House Republicans decided not to walk out of the House energy committee--they ran! --It's so called Susana announced she would not sell the state jet and immediately flew to Hawaii! --It's so cold that Diane Denish agreed to co-pilot the jet! As for today's weather, we get the forecast from ABQ South Valley politico Sisto Abeyta: Good Morning Albrrrrrrrrrrquerque! Bundle up folks--it's a cold one! AND IN OTHER NEWS.... It could have been worse and it's going to get better. That in a nutshell was the message from state Dem Party Chairman Javier Gonzales in his official re-election announcement.Gonzales faces a spirited challenge from ABQ defense attorney Sam Bregman when the Dem central committee meets to pick the chairman April 30. Meanwhile, here in Bernalillo County, insiders say politico Victor Raigoza is well-positioned to become the new chairman of the BernCo Dem Party. He would be replacing Ana Canales. A county central committee meeting is slated for March 19 to make the decision. BILL'S PAPERS Former Governor Big Bill's papers have gone private for eight years, but that doesn't mean investigations into the former administration would be impeded , according to one of our Legal Beagles: ...A federal or state court or grand jury could still issue subpoenas, but the general public is denied access. Meanwhile, Susana says that unlike Big Bill and Governor Johnson before him she will not have her papers sealed for eight years. At least that's the line for now. HEDGING HER BET? The Guv is hedging a little on her statement that she is against a proposed Indian casino at Anthony, NM. She told the Las Cruces paper Friday: "I don't support it." Now she comes with this revised statement: "I’m not convinced that it’s the best thing to do right now, but that doesn’t mean I can’t be convinced..." Jemez Pueblo first proposed opening a casino at Anthony in 2oo4. Jerry Peters, businessman and major friend of former Governor Big Bill, is partnering with Jemez. The casino has been rejected by the Feds once, but Jemez wants it reconsidered. Martinez appears to have made a rookie error, first appearing to shut the door completely when she may have meant to keep it slightly ajar. But it may be academic. A long federal process must be followed before the proposal ever reaches her desk. That could easily take another seven years. And despite her revised statement, she says she remains skeptical of the economic value of the casino. NO SUGARCOAT There's really no way to sugarcoat it--serving in the minority in the US House of Representatives is generally a miserable experience, as NM Dem Reps. Martin Heinrich and Ben Ray Lujan are about to find out. Unlike the Senate, where the minority has some power and protections, the House is like a dictatorship when it comes to party control. And right now the R's are the dictators with NM GOP US Rep. Steve Pearce benefiting.It will be a long two years for the young Lujan and Heinrich when it comes to trying to legislate anything. Their best bet is to beef up their constituent services during this down time and also look around for a couple of Republicans who will take a coffee break with them. Good luck with that. Here are the top ten US Senate races for 2012 as seen through the eyes of the Politico. New Mexico is not among them, as Dem Senator Jeff Bingaman remains unopposed. SENA SIGHTING The WaPo reports: The Democratic Governors Association has rounded out it's staff, and it's set to announce a new political director, finance director and communications director. Dan Sena will take over as political director. Sena, a former deputy political director at the DGA, most recently worked with Patriot Majority to help reelect Senate Majority Leader Harry Reid (D-Nev.). Before that, he worked for New Mexico Gov. Bill Richardson (D) and Sen. Tom Udall (D-N.M.). THE BOTTOM LINES Sometimes you try to do too much, and it leads you astray. It happened to us Tuesday night when we were assembling a multi-subject blog in the middle of the school board election results. In our first draft, we correctly blogged that incumbent school board member Dolores Griego was defeated, but we had the wrong name of the winner. The victor was Analee Maestas and she will now take that South Valley seat. Our apologizes to her for not getting it right the first time.And it is Orbital Sciences Corporation--not Orbital Services--as we initially blogged in our report on the Spaceport. This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author
Wednesday, February 02, 2011A New Day Or A Doomsday For Spaceport? We Game The Action, Plus: Javier Gonzales Will Seek Re-Election As Dem Chairman, And: Esquivel Keeps APS Seat Will it be a new day for the Spaceport or Doomsday? With Governor Martinez continuing to show reticence about the southern NM project east of T or C, the prospect of the $210 million state funded venture actually being shut down by her is still a concern to Spaceport backers.As recently as last Friday Susana insisted that she is not getting all the "data" about the project from Virgin Galatic, the anchor tenant for the Spaceport that is signing up hundreds of customers who will pay $200,000 to take suborbital flights in 2012. "We want to go forward, but we want to have a clear understanding of what we're going forward with...They have not been very willing to share the very hard data of what is the state's commitment long-term." But Rick Homans, ousted by Martinez as executive director of the Spaceport, says in an op-ed piece that just isn't so: She seems to be implying that the old board and me did not provide information to her, and her team.This is absolutely false. The request included the agreements with Virgin and a copy of the Virgin Business Plan, and these documents were hand-delivered (as described below) to Jon Barela, Secretary-designate for Economic Development.... So if Barela, who will chair the Spaceport board, has the docs, what "hard data" does the administration need? Good question. Southern Spaceport supporters say the doomsday scenario they hear floating would have the administration attempt to take some $80 million in Spaceport money still unspent and use it to pay off a similar amount of bonds that were used to finance the first construction phase. Once the bonds are paid off, the increase in the gross receipts tax approved by voters in Dona Ana and Sierra counties and used to help finance the Spaceport could be repealed. Martinez could then argue she saved the state from "SpacePork" and banish this portion of the Big Bill Richardson legacy to the ash heap of history. Like we said, this is a doomsday scenario. Martinez is the state's first truly southern Governor in decades. It would represent a major political gamble for her in a region that sees this project eventually providing perhaps thousands of jobs and a new NM commercial space industry. But if Spaceport champions don't let their voices be heard during this critical juncture, they could see their dream drift away. Martinez dismissed all the Spaceport board members and has formed a review committee. But in a major blow to Spaceport backers, it has now become clear that former astronaut and ex-GOP US Senator Jack Schmitt, one of those providing input to the review panel, does not support this project. We base this on a number of well-informed sources. Schmitt is Martinez's nominee to become secretary of the state energy and minerals department.Schmitt, a native of Silver City, has already had to recuse himself from several meetings regarding the Spaceport because of a conflict of interest. That conflict is his membership on the board of directors of Orbital Sciences Corporation, a potential competitor with our state's spaceport. From the Orbital web site: Orbital is also entering an exciting new era of human space flight supplying commercial cargo resupply services for the International Space Station using our new Taurus® II rocket and Cygnus™ cargo logistics spacecraft. Former GOP NM Governor Garrey Carruthers, a dean at NMSU, may represent one of the best hopes for keeping the project on track. He has spoken of the business and job opportunities it represents. He is on the review committee and will assist in finding a new Spaceport executive director to replace Homans. Martinez on Jan. 14 ousted all six directors of the Spaceport Authority board--including the Republicans. No new members have been named, adding to the nervousness over the direction of the project. The state could be on the hook for another $10 million for another runway and perhaps a couple million more to get it all together. As others have pointed out, it's like a city building an airport--it is a public transportation facility. These are one time costs that don't represent a recurring bleed to state revenues. BRANSON AND SUSANA Susana dropped a tidbit in her newspaper interview about what apparently was her first contact with the colorful head of Virgin Atlantic, Sir Richard Branson. She said Branson called her to ask that she keep Homans, a Big Bill ally, as executive director of the Spaceport. She told him she needed to make a change. Which is fine. But will the billionaire businessman get any warm and fuzzy stuff from Susana? Or will he be tempted to take his business elsewhere?WHERE NOW? Because of the relatively picayune concerns expressed by the incoming administration, the push and pull over the Spaceport has taken on personal overtones. Detractors of the project call it a monument to Richardson and the aforementioned "SpacePork--a political folly. But equally emotional Spaceport proponents attack Martinez for being consumed with animosity toward Richardson and anything he represents. They argue she is hemmed in by her own provincial views and more concerned with taking down Richardson a notch than advancing the state's economic interests. It's time to get beyond the personally and politics and move forward with the investment the state has made. The Spaceport was never held out as an economic panacea. It was put forth as a possibility--a grand possibility for New Mexico to become a leader in the burgeoning commercial space industry. There is foot dragging on the Spaceport by the new Governor, but we don't yet sense she has dug in her heels. At least we hope not. The choice before her is to think big or act small. JAVIER IS IN The Javier Vs. Sam contest is back on. NM Dem Party Chairman Javier Gonzales ended the uncertainty and has decided to indeed seek a second two year term as the leader of the state's majority party. He is getting an aggressive challenge from ABQ defense lawyer Sam Bregman who argues it's time for a change after disappoint Democratic election results last year.Insiders say Gonzalez has solid support among the county chairs of northern New Mexico and can also count on support from a number of state legislators. The state's congressional delegation is also though be with him as is national Dem chair Tim Kaine. We blogged yesterday how the names of Lawrence Rael and Joe Campos were being floated as possible candidates if Javier stayed on the bench. Where does that leave Bregman with the several hundred members of the party's central committee who will meet in late April to decide the question? He has support among politicos in ABQ's South Valley and West Side, and he has a lot of time to make his case. One of the reasons Gonzales hesitated about running again was because he is in line to become the chairman of the NMSU Board of Regents, a matter he will "deal with later," according to one Alligator close to the action. ESQUIVEL RE-ELECTED It is not an easy environment for any incumbent, but ABQ School Board President Marty Esquivel managed to win re-election last night, overcoming a serious challenge from Cheryl Ann Harris. He garnered 51%. Harris received 36% and two others trailed.All election results here. It wasn't so easy for incumbent board member Dolores Griego. She lost her South Valley seat. Analee Maestas won with 46% of the vote in a five person field. Katherine Korte took a west side board seat, passing Peter Sanchez and three other rivals. Three of the seven board seats were up for election. The $70 million bond issue passed with about 65% support in Bernalillo County, but longtime CNM board member Carmie Toulouse lost her seat to Mark Armijo. Turnout for the APS election appeared to be a bit above 3 percent of the registered voters. Folks just don't come out for these contests, good weather or bad. MOVING UP Obama's latest numbers: The RealClearPolitics average of recent polling on President Obama's job approval has the President's approval at 50.7%, and disapproval at 43.2%. Approval is unchanged since yesterday; disapproval is up 0.4%. If he's near 51% nationally, you know he is higher in New Mexico. Republicans will fret over that as they want those numbers down so they can tie in Dem US Senator Bingaman to an unpopular president in 2012. The catch? Obama has plenty of time to sink back down before the campaign is underway. Jeff is meeting with Mr. Prez at the White House today to talk energy policy. Senator, could you remind him about that House budget resolution from the R's that would slash the budgets for the national labs? It might be something he wants to talk about when he hits the campaign trail down here. Just a thought. CLOWNING AROUND The Clown From the BBC:Brazilian TV clown Tiririca, who won more votes than any other candidate in last October's congressional elections, has been sworn into office. Francisco Oliveira Silva, to give him his proper name, was applauded as he took his seat alongside other new members of congress in Brasilia. He was cleared to assume office after a court ruled he met the literacy requirement for public office. A clown in public office? That wouldn't even make the back pages around here.
This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author Tuesday, February 01, 2011New Names Floated For Dem Chair As Bregman Circles, Plus: Grading Schools With Hanna & Susana, And: More Cool Political Stuff For A Winter Tuesday
Lawrence Rael
New names are starting to float as possible candidates for the chairmanship of the New Mexico Democratic Party as establishment types worry that bombastic trial attorney Sam Bregman could pick up steam if current chair Javier Gonzales decides not to seek another term.Lawrence Rael and Joe Campos, both Dem lieutenant governor candidates in 2010, are being mentioned by the Great Mentioners as possible contenders for the job if Gonzales goes. Bregman must feel like he needs a bullet proof vest since he announced his bid. He has been bombarded with criticism, including a couple of anonymous web sites panning him as a poor choice for the party because as a defense attorney he has represented Democratic politicos charged with corruption. They also say he is too boisterous and would get in the way of Dem US Senator Jeff Bingaman and President Obama, both of whom are up for re-election next year. But Javier is taking hits for going Hamlet and saying he is now undecided about seeking another term after saying he was a go. Bregman backers say Sam is filling the leadership vacuum and has the political acumen to be party leader. Supporters of a Rael or Campos chairmanship say they have solid managerial skills and would present a calmer face to the voting public than the sometimes caustic Bregman. They fear a backlash if Bregman becomes the face of the party. Rael and Campos are both quiet types and both Hispanic in a party whose majority membership is Hispanic. Rael, a longtime government administrator, is retired. He once worked for Senator Bingaman. Party chair is not a coveted job and Bregman's enthusiasm for the post plus his ability to raise money for the party have others giving him the once over. They are not convinced that Bregman's clients would be fodder for the R's, saying such info is more insider baseball than anything. The anonymous attacks on Bregman also may be falling short of the mark with some Dems who don't see them as relevant as his positions on issues. From our email regarding the stopsam.com site: The site has a private registration. This stinks. As they are hitting Bregman on ethics, it is incumbent on the publishers of this site to come forward lest be branded “hypocrites.” Inquiring minds would like to know who is hitting Bregman, and I’ll be bet he would too. Javier is looking increasingly jittery about running. He is in line to become president of the NMSU Board of Regents and knows being party chair at the same time is not kosher. A decision on whether he will run is expected this week. With well-known opposition like Rael or Campos, party insiders say Bregman faces an uphill battle, but with the shaky condition of the party, a victory is still possible. Several hundred members of the Democratic Party State Central committee will meet in late April to elect a new chair. One other note: We blogged in our first draft Monday that Bregman was born in New York and that he represented ex-NM Treasurer Michale Montoya. He was born in D.C. and he did not represent Montoya. ON TO SOMETHING? Skandera & Guv (AP) Supporters of the grading system say it also addresses a culture of apathy about education that has taken hold among some parents and has translated into generational failure. Governor Richardson faced a similar dilemma with the state's chronic DWI problem. His heavy and continuous advertising and education program is credited with finally putting a substantial dent in the state's drunk driving rate. He made it uncool and used a bit of fear to improve the state's rankings. The hope is that if the school grades are handed out with impartiality, heavily publicized and followed up with intervention, they could get more New Mexicans concerned and involved in the fight to improve the public schools. As Richardson showed with his DWI crusade, changing attitudes is half the battle. EGOLF'S CHAIR Readers write to point out that the House energy committee, newly chaired by Santa Fe Dem State Rep. Brian Egolf who has opposed oil and gas interests, is evenly split among Dems and R's so his power may be diminished. But others point out that an even split also means the R's are not going to be able to advance an energy agenda--including deregulation--without spirited opposition. It will be interesting to see what, if any, legislation come out of this panel this session. Meanwhile, if the oil crowd thought Egolf might cool it for a while. Forget about it. He comes with this: Egolf introduced a bill that would reduce the gross receipts tax for all New Mexico businesses and residents by ¼ percent. The reduction in the gross receipts tax would be paid for by eliminating tax loopholes and subsidies for oil, gas and other extractive industries. "At a time when legislators and the governor are looking at taxes and demanding accountability, we need to closely examine whether the $200-400 million annual subsidy to extractive industries creates jobs." Egolf said. Looks like Speaker Lujan found his needle to place in the side of Susana when he made Egolf a chairman. And that needle drew blood Monday when Republican members of the energy committee walked out of a hearing Egolf called over oil and gas regulations. The R's grumbled that one of the "expert" witnesses wasn't an expert at all, so they took their marbles and went home, or maybe over to the Rio Chama for a couple of belts of 30 year old Johnnie Walker. The public has little patience for stunts. If Egolf's panel is biased, get your own panel going for rebuttal. The R ringleader on this one--Rep. Don Bratton--played it wrong. But then this is the gang that couldn't shoot straight when trying to put together a coalition with conservative Dems, even though they nearly took control of the House last November. Did someone say "Keystone Cops?" ELECTION DAY Want to vote in today's ABQ school board election? Info is here. HI FROM BILL Big Bill updates his activities in this email to friends:Friends, Colleagues, and Supporters, Thank you for your continued support as I make the transition into private life. I am pleased to announce that I am in the process of setting up a new office in Santa Fe. I wanted to take a moment to share my new contact information with each of you. Office of Governor Bill Richardson Phone: (505) 988-7140 Fax: (505) 988-7094 Email: Governor.Richardson@gmail.com In the coming weeks we will be launching www.billrichardson.com. Until then, I continue to be available online at www.facebook.com/GovernorRichardson and via Twitter at GovRichardson. Bill is also working to line up speaking engagements with a starting fee of around $25,000. But if you hang out at the La Fonda lobby in Santa Fe you can probably talk to him for free. (Does he still hold out hopes for a gig with Obama?) END OF THE TRACK Governor Martinez appears to have put the final nail in the coffin of a proposed casino at Anthony, NM in Dona Ana County. "I don't support it," she said. Jemez Pueblo has been fighting to bring a casino to the small town since 2004. They partnered with Big Bill business friend Gerald Peters to push it, but an Indian casino needs both federal and state approval. Without the Guv's signature the casino can't go forward. That is welcome news to Sunland Park Racetrack and Casino which has long opposed the project, saying it would harm its business and state horse racing.
JAY'S JOB A reader, reacting to Monday's blog, writes in saying those in the Santa Fe set comparing Susana political consultant Jay McCleskey to Butch Maki, a lobbyist who was close to former Governor Richardson, have got it wrong:As you’ll see from Maki’s website, his business is built entirely on his ability to assist clients with government, whether through lobbying, or “consulting clients” by providing government relations assistance navigating government agencies and procedures... McCleskey's firm will not be registered lobbyists or take government contracts and says it plans to be primarily a political consulting firm. TIMELY APPOINTMENT News comes that NM Dem US Senator Tom Udall will serve on the Senate Foreign Relations Committee. He's just in time to try his hand at helping solve the Mid-East imbroglio. Good luck with that. POWELL PERSPECTIVE The new boss at the state land office is the old boss--Democrat Ray Powell. He's profiled in this AP piece in which he says he will let the sun shine in on office operations. Okay, but were still going to miss ex-GOP land boss Pat Lyons who made more news than Charlie Sheen. TURNER'S TUNE That $25,000 contribution made to Governor Martinez's inaugural committee by high profile ABQ lawyer Turner Branch caught the attention of KKOB-AM radio show host Bob Clark. He emails this zinger:Turner Branch makes a max donation of $25,000 to Governor Martinez for the inaugural?? Interesting considering he supported Allen Weh in the GOP Governor Primary and then crossed over and very publicly supported Dem Guv nominee Diane Denish in the November election. I guess he knows how to kiss and make up! This is the home of New Mexico politics. E-mail your news and comments. Interested in advertising here? Drop us a line. (c)NM POLITICS WITH JOE MONAHAN 2011 Not for reproduction without permission of the author |
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