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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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