Speaker & Guv
State House Speaker Ben Lujan has jolted awake napping taxpayers, prepping a budget for passage today that would trim a measly $71 million from state spending and raises a bevy of taxes by $400 million to fill much of the remainder of an estimated $600 million budget hole. But the Lujan low-balling on spending cuts is already dead-on-arrival in the Senate, signaling the lack of communication between the two bodies.

Talk about changing the subject. Can you believe the deluge of news coverage over that domestic partners bill in Santa Fe?

We know Big Bill, who allowed the measure to be introduced in this budget session, has to love the way it is diverting public attention away from the worst state budget mess in a gazillion years. We bet some of the legislative leadership also does.

Consideration of the bill--which basically would give gay couples the same rights as married couples--is getting dragged out for another couple of days, even though the bill was dead on arrival, just as it was last year.

Duly noting this Governor's laudable human rights record, couldn't this matter have been settled in a couple of hours? Sure, but changing the subject to a hot button topic is a lot easier than dealing with the emptying of the state's cash register and a still deepening fiscal crisis. Isn't it?

ON THE WEB

Taos winter sunset
No voter rebellion in Albuquerque last night. $616 million in bond issues were approved by 72 percent of the voters. Of course, the anti-tax increase crowd can argue that approval of the bonds did not raise taxes and thus are not any indication that New Mexico voters are willing to add to their tax burden to help solve the state's $600 million budget gap. But something is going to have to resolve it and with the thirty day session about halfway through, there are already whispers of gridlock and special sessions. Of course, the leadership will tell you that "magic" will manifest itself in the final days as it always has and a deal will be cut resolving the mammoth deficit.

But the House and Senate remain far apart, and this is not a garden variety budget dispute. It is the mother of all budget battles, with real government jobs at stake. It makes observers wonder why anything else is being given much attention during this session which constitutionally is supposed to be devoted to budget matters.

Just in case there is an end of session calamity we checked with our wall-leaners to find out if that proposal by Senate Majority Leader Michael Sanchez to borrow millions from the state's permanent funds would need more than a majority vote in the Legislature. No, it would not. A simple majority would suffice to float bonds against the rainy day fund money.

Not that anyone is saying a rainy day raid will be the end game, just that the idea is not seen as far-fetched as it was a week ago. Why? Because House tax increase proposals are truly on a collision course with Senate demands for spending cuts.

OYSTERS AND TAXES

You can see part of the reason why the state is in such a budget mess as you are out and about. Last night at Pappadeaux, a popular national seafood chain, diners were splurging on oysters on the half shell. Well, splurging is hardly the word. They were on sale for $3.99 a dozen and not a few customers were ordering a couple of batches instead of more expensive entrees. That means smaller bills and that means less gross receipts tax for the state.

(We opted out of the cheap oysters and went for the Greek salad and Andouille and seafood soup. Hey, someone has to help the state).

Mark Bernstein, co-owner of the locally-owned Flying Star Restaurant chain, told us recently that a good number of customers are coming through the doors of his restaurants but they are ordering less. That confirms the major and continuing change in consumer spending patterns that is shrinking tax collections and causing Santa Fe solons their biggest financial headache in generations.

RAEL RAILS

Dem Lt. Governor candidate Lawrence Rael is joining his rivals and dumping on Brian Colon for failing to show up for last Friday's Taos County Dem Party debate and Saturday's party convention there. Go ahead, Lawrence, unload.

If you are re going to represent the north, you have to be in the north. I was glad to attend both the Taos debate and convention. If he is truly a statewide candidate, Brian Colon should have been there. I also made it to the Valencia County Matanza he was at on the same day as the Taos convention that he failed to attend. I am very concerned about the needs of all of New Mexico--rural and urban.

We ran Colon's defense of his Taos absence yesterday. Another angle we hear is that Taos County Dem Party Chairman Chuby Tafoya--(yeah, that's one of the great names in state politics) is partial to Rael's candidacy and tangled with Colon when Colon was Dem state chairman.

Whatever the insider baseball, in the absence of any other competitive Democratic primaries, the Light Guv race is providing the major blogging entertainment for Primary 2010. Maybe we should buy some of those cheap oysters at Pappadeaux to celebrate?

WHAT KIND OF FRONT RUNNER?Denish unloaded on Domenici (not by name) at a recent legislative dinner, revealing that she thinks he is the likely nominee. But that is not necessarily the view shared by many Republicans. The party has suffered major division in recent years, making it difficult for any one hopeful to get major momentum going into the preprimary.

ASSESSING THE ASSESOR

Bernalillo County Assessor Karen Montoya will kick-off her re-election campaign this week, but the Democrat may not have a free ride for the Democratic nomination. Guess who might be back? Former Assessor Mark Carillo who served eight years in the post and was term limited before Montoya took over. Nothing official just yet...

THE MEDIA BEAT
Reminds us of that old joke. "The worst thing about capitalism is competition."

FOLLOW-UPS

UNM Regent Jamie Koch was confirmed to a second, six year term--not four years--as we blogged in our first draft yesterday. He served one year of that before winning Senate confirmation Monday to the second term. Koch's complete opening statement before the Senate Rules Committee can be read here. In it, he explains an audit questioning whether all UNM faculty is living up to their required work loads. The faculty gave Koch a vote of no-confidence.

We first spelled the first name of State Senator Dianna Duran (R-Dona Ana & Otero) with only one "n." We did that even after we Googled her name as we blogged of her bid for the GOP nod for Secretary of State.

Do we have a Starbucks deficiency?

THE UNM BEAT (CONT.)

Back to UNM for a moment. It is the kind of tinderbox issue that is going to start landing on the front-door of Diane Denish soon. The presumed Dem Guv nominee is already being looked to for leadership on the issue from blog readers like Sarah Nezzer:

I've sent her (Denish) campaign two emails involving my (and many others) concerns about UNM's hierarchal structure, athletic funding, loss of faculty, and top heavy pay structure. I then asked for official stand on anything having to do with UNM. And she said...well, nothing. I have yet to receive any response. In an economy as hard hit as NM, the fiscal drain of UNM should be a concern to government officials and taxpayers alike. Furthermore, all parents and students of the University should be concerned to see such a fine institution going though such turmoil.

Shouldn't that force be one that is educating students to their fullest potentials? How can that happen when we still are losing faculty to other institutions, and freezing vital staff positions so that our VP's can collect on their hefty salaried positions? I hope that with your constant attention to this issue, and your readers interest, this will become a hot button topic at election time.

We hope it will as well, Sarah. The Guv candidates on both sides have a lot of homework to do to answer the tough questions that will be headed their way in the months ahead.

Slowly but surely the wake up call must be getting heard at Scholes Hall at the University of New Mexico where President David Schmidly presides: If you think you're headed in the right direction in cutting administrative bloat and waste that built up during the late, great bull run in oil and gas revenues, you aren't heading there fast enough.

Not that the Senate Rules Committee rejected the Guv's renomination of UNM Regent Jamie Koch for another six year term--they passed it on to the full senate with only one dissenting vote--but they did finally give Koch some of the grilling the state has been waiting on. Outrage continues to build over overcompensated and over employed administrators at the state's largest university and as the state's budget shortfall approaches the gargantuan level of $600 million for the next budget year.

Koch, a longtime Dem Party powerhouse, was confirmed for another term by the full Senate on on a 31 to 5 vote. Only the liberal wing of the party--Senators McSorley, Griego, Feldman, Ortiz y Pino and Fischmann of Cruces dared cross the old guard and the campaign financial prowess represented by Jamie.

But the contentious hearing was the clearest message yet that political populism might even begin to impact key committee chairmen and a governor who has, according to his most severe critics, allowed UNM to run like a pit bull without a leash.

As for Koch, our Alligators game it out this way. If Dem Diane Denish, a longtime ally of Jamie, is elected Governor, Koch could very well decide to resign from the regents, sparing her a big headache and letting her appoint someone who doesn't carry past baggage into a future administration. Jamie, being the political pragmatist he is, might even call that a good compromise.

TRACKING THE JUMPING R'S

Tracking what Republicans are running for what office, or thinking about running for something, has been like watching jumping beans, but with the deadline to file nominating petitions for statewide office just days away--Feb. 9--we finally are getting a handle on who will run for what statewide offices other than land commissioner which has had several candidates for a number of months.

For starters, Santa Fe attorney Marco Gonzales who told us (and we blogged) that he would seek the GOP nod for Secretary of State apparently has decided not to go forward. Instead, Otero County State Senator Dianna Duran will go for the post. She is a former Otero County Clerk who has deep knowledge of the SOS office. Dem Mary Herrera is seeking a second four year term.

A couple of politicos from Dona Ana County have been recruited for statewide offices. Former Dona Ana County Treasurer Jim Schoonover will be the GOP choice for state treasurer. He will go up against Dem incumbent James Lewis who is seeking a second four year term. Earlier, former DEA agent Errol Chavez of Las Cruces switched from the land commission race to the contest for state auditor.

Here's a name that you old-timers will find familiar. 34 year old Matt Chandler, district attorney for Roosevelt and Curry counties, is the R's pick to run for attorney general. Chandler's father is Caleb Chandler, currently the vice-chairman of the Curry County Commission, a former Clovis police chief and former three term state senator who ran for Congress against Republican Joe Skeen back in '82. Matt Chandler was unopposed for re-election in 2008. He will face Dem Attorney General Gary King who is seeking re-election to a four year term.

That's kind of interesting. Gary's dad was the late Governor Bruce King. Who said having a famous father is a headache? Well, maybe Freud or someone but they weren't running for anything.

WHAT'S IT MEAN?

My first take on this is that the R's fielding two Dona Ana County statewide candidates could help in getting some more vote for the GOP out of that Dem county. That could be good for Republican congressional hopeful Steve Pearce who is challenging incumbent Dem Harry Teague. Chandler helps in the same way on the conservative east and Duran will help with the base GOP vote in the SE.

This line-up seems to make more compelling an argument for an ABQ Guv candidate, but don't tell that to Susana Martinez of Las Cruces, the only one of the GOP Guv hopefuls from outside of ABQ.

(Hey, fellow conspiracy buffs. Was this GOP ticket designed for a guy from ABQ with a famous name whose dad was a US Senator? Only the Illuminati knows for sure.)

BLOG POWER!

A lot of Republicans rib us for raising Cain when the party was coming up short in fielding a GOP candidate for ABQ Mayor last year. Shortly after we blogged of the looming misstep, GOP Chairman Harvey Yates, Jr. stepped on the accelerator and helped recruit RJ Berry who won in an upset. So, Mr. Mayor, if you feel like thanking us sometime, that's fine. In fact, about that ticket for driving while talking on the cell phone....

And we were back on the R's backs this year, giving Harvey and GOP executive director Ryan Cangliosi a mountain of grief for not getting the statewide ballot filled in with R candidates. Looks like they are going to do it--barely. My, oh my. The things you can make happen on this little ol' blog :).

MONEY LINES THAT MATTER
Sen. Bingaman
You hear about "money lines" all the time. Well, here are some real money lines from US Senator Jeff Bingaman on the President's proposed budget and how it would impact funding for Sandia National Labs and Los Alamos Labs:

I think it is very very favorable to our state. The overall increase is in the range of 12 to 12.7 percent of increased Department of Energy funding that would be coming to New Mexico--much of it to our national labs--both Los Alamos and Sandia. Some of that is weapons related. Some of it is for general research and development...but I think all of that is...good news for New Mexico.

Good news if the President's budget makes it all the way through Congress untouched. That's unlikely, but any increase in lab funding will be welcome as lab employment levels stagnate or actually retreat. Our D.C. analysts say a key question is how much of any new funding would go for construction---temporary jobs--and how much would go to adding permanent staff at the labs. Another question: how far will the proposal to "flat line" next year's budget get which would mean no increases for the labs?

And for the numbers lovers, Senator Tom Udall came with actual figures on the proposed funding:

A $393 million budget increase for LANL, bringing the requested total for the lab to $2.217 billion. The request includes increases for programs to secure our nation’s aging stockpile, for nuclear nonproliferation efforts and to increase readiness in technical bases and facilities; A $364 million increase for Sandia, bringing the requested total to $1.49 billion....

That totals $3.707 billion in proposed funding for the two big federal installations. And that's what you call real money lines.

THE FIERY FIGHT

Ortiz y Pino
More intensity in that Dem race for lieutenant governor as we begin a new month and move ever closer to a critical mid-March test for the five contenders. Perceived front runner Brian Colon was taking hits over the weekend from both left and right, even as he hosted the opening of his ABQ headquarters.

The camp of ABQ Dem State Senator Jerry Ortiz y Pino, the most liberal of the five hopefuls, was boasting of their candidate's win in a straw poll in Taos County Friday, conducted after a forum for all the light guv candidates, except Colon, who did not appear. Ortiz y Pino polled 16 votes, Joe Campos and Lawrence Rael each received 11 and Linda Lopez only one.

Taos is a breadbasket of Dem liberalism, so Ortiz y Pino's win can't be blown out of proportion, but neither can it be ignored. If he can coalesce the left-wing of the party statewide, he could garner the needed 20 percent of the delegates at the March pre-primary convention to get an official spot on the June 1 primary ballot. If he does that, he might then be able to raise the money to compete, instead of struggling to keep the lights on.

Ortiz y Pino operatives said the Taos straw vote proves that Colon, who has raised the most money among the hopefuls, has a long way to go before he takes the light guv prize. It follows an earlier straw poll in Sandoval County that had Colon winning, but with Campos placing an unanticipated strong second place showing.

As Jerry squeezed Brian on the left, Campos was coming at him from the center and right. His camp smacked Colon for failing to show up at Taos, saying it reveals his weakness in the Spanish North. They were spinning that if Pete Domenici Jr. is the GOP nominee, Hispanics there could waver and that native son Campos, a state representative and mayor of Santa Rosa, could help presumed Dem Guv nominee Diane Denish hold down the fort far better than Colon.

COLON COUNTER PUNCH
Colon & Me
While Colon was being treated like a punching bag, he was throwing some punches of his own. Reports came in from the recent Valencia County Dem ward meetings where delegates were selected for the state pre-primary convention. They had Colon getting a strong showing in his home county. And Colon's campaign organization is repeatedly putting together smoothly run events, while the candidate is not prone to taking naps.

As for Rael, he started with a head of steam months ago, but has not had much to say lately. The first time candidate, say insiders, is trying to find his sea legs in this stormy campaign. But his straw vote showings are respectable and his head remains above water.

ABQ State Senator Lopez is all but out of the game, now getting trounced in two straw polls and getting nuked in the press for getting a part-time job with Bernalillo County that her foes say was politically motivated.

If you call it a four way battle--as we do--there may be room for three of those four to pick up 20 percent or more of the delegates at the pre-primary. Insiders say this Thursday's ward meetings in big Bernalillo County where 40 percent of the delegates will be chosen for the March pre-primary will tell us more about where this race stands. For right now, the action is hot and heavy.

WILL THEY COOK KOCH?

They've been waiting on this one for a a while. The confirmation hearing of University of New Mexico Regent and longtime Dem Party powerhouse Jamie Koch goes before the state Senate Rules Committee this morning. It's been a year since Big Bill reappointed Jamie to a second four year term, a year during which storm clouds got even darker over Koch's head. Both the faculty and graduate students gave him votes of no confidence. The university itself has also been bedeviled by scandal in its high-profile athletics department, vociferous criticism over its administrative spending and whether the place has become a political stomping ground instead of an isle of academia.

Bill decided to reappoint Koch for a second four year term to the regents, but he had him step aside as president of the panel. Those opposed to Koch are hoping that the Rules Committee rejects his nomination, but insiders counting noses say Koch is quite likely to win there and again when the full Senate takes up the nomination. But we'll wait and see.

It will be interesting to determine if Senators have taken their legislative oversight chores seriously and ask the tough questions of Koch. The lay down attitude towards UNM among key Roundhouse leaders is getting increased attention because of the huge budget deficit. The school's employment of a wide array of staffers with political ties to the Governor has raised question of whether UNM President David Schmidly presides over a politicized institution that has lost sight of its fundamental mission and created sinecures for dozens of politicals.

DEBLOATING UNM

One of the biggest issues for critics is what they see as the administrative bloat at UNM. State Senator Eric Griego has come with a resolution questioning the six figure salaries of some 20 UNM vice-presidents. Why do we have so many Veeps and what of the $4.5 million paid to them each year? Can we start cutting? Those decisions can't be made directly by the Legislature, but they do have the power of the purse and can strongly signal what change they desire. Griego's memorial has no force of law. The UNM administration maintains it is cutting back on its administrative costs.

LAB BUDGET BREAK?

Many eyes in New Mexico will be on Washington today as President Obama releases his proposed budget. Reports say he will ask for a 10 percent boost for nuclear weapons funding which could translate into increased budgets for Sandia and Los Alamos Labs and perhaps more employment:

The administration will seek an initial $600 million increase for nuclear weapons programs in the proposed 2011 budget it submits to Congress on Monday. That would increase annual spending on those programs to almost $7 billion.

There is a long way to go. Congress will take months to decide the budget for the year that starts Oct. 1. This year's budgets for Los Alamos and Sandia have been flat.

HEINRICH VS. BARELA
Jon Barela
ABQ GOP congressional candidate Jon Barela did not meet the fund-raising expectations for the fourth quarter that were set for him--at least around here by the Alligators. Attorney Barela, trying to unseat freshman US Dem Congressman Martin Heinrich, raised $113,000 in the fourth quarter. ( He reports spending about $40,000 in the period. Here is where it went.) Insiders were saying a move toward the $200,000 level would have better positioned Barela for inroads against Heinrich.

Barela reports having $215,000 cash on hand, but Heinrich, who raised $267,000 in last year's final quarter, now has $834,000 in cash.

One thing Barela does have going for him is the unsettled political climate. The ABQ district was Republican for forty years before Heinrich won it in 2008, but Barela is going to have to really rev up his engines to get the buzz going.

TEAGUE VS PEARCE

Meantime, the buzz is so loud in the southern congressional seat, you need ear plugs. Republican Steve Pearce adds to it by reporting he outraised Dem US Rep Harry Teague in the fourth quarter of '09--about $156,000 for Teague and $252,000 for Pearce. but Teague still has more cash in the bank--$885,000 to Pearce's $569,000.

Teague getting out raised Peace in the fourth quarter may be a small warning flag, but Congress was in session much of the time. Let's see what happens in the first quarter of this year to see if there's a clear trend. Pearce also outraised Teague in the summer quarter when he kicked off his candidacy. It goes without saying that this race is hotter than a stolen tamale.

FROM INDIAN COUNTRY

Reader Matthew Tso informs:

Former Navajo Nation Vice Chairman Marshall Plummer will likely give incumbent Democratic Public Regulation Commissioner Carol Sloan a primary challenge for District 4. Plummer was a popular Vice Chairman who served with former Chairman Peterson Zah. Plummer is currently in charge of government affairs and community relations at the Four Corners Power Plant...

Thanks, Matthew. That's a big name challenger who joins a lengthy list of other Dem hopefuls. This particular PRC race is attracting a lot of candidates because Commissioner Sloan, a former McKinley County clerk, faces charges for assault and battery after she accused her husband of cheating on her with another woman in Gallup. Sloan allegedly assaulted the other woman at her home.

MO CHAVEZ UPDATE

Meanwhile, KRQE-TV is coming with the reason why State Insurance Superintendent Mo Chavez, whose division is under the PRC, was placed on paid administrative leave. The station says it has learned that a female employee has filed a harassment complaint against Chavez.

BACK TO INDIAN COUNTRY

Why does it take so long to get the state capital outlay funds that go for projects In Indian Country to get spent? It's a hot topic again as lawmakers look for $150 million in stalled capital outlay projects to cancel and use the money to resolve the deficit of upwards of $600 million. State Senator Linda Lovejoy says getting the money spent that has been authorized for Indian Country projects is often delayed because of a nightmare bureaucracy:

The Navajo Nation's governmental process is enormously complex and time-consuming because it not only must deal with the federal government where projects involving land is involved, but must also deal with 3 states and 11 counties in those states where capital projects are involved...

Lynda says many of the projects being considered for cancellation are for basic human needs like running water and electricity. If so, legislators will be sympathetic, but can Indian Country Senators Lovejoy, Munoz and Pinto give us some guidance on how the "enormously complex" task of getting these projects moving can be simplified and expedited?

HOW MUCH PORK POWER?

The latest figures show there is still some $1.4 billion in capital outlay stashed in state bank accounts waiting to be spent. The legislators are looking at cutting $150 million of that to help plug the budget hole. But there is mucho resistance. The reason? Many of them are convinced these projects are vital to their re-election prospects and they don't want to cancel them for fear of losing votes.

We brought this up with a posse of Alligators at one of the local bistros the other night and the consensus was that capital outlay--or pork as it is sometimes lovingly labeled--has more of a political impact in small, rural areas of the state where a new project is very noticeable. But in the large urban area of ABQ, maybe not as much as ongoing construction and neighborhood change is more rapid and spread out.

Senate leader Sanchez has proposed taking money from the state's $13 billion in permanent funds to fix the budget, but why do that when you have all this capital outlay--much of which has been stalled for years--and more of which could be used to cover the gap?

It's about having the political will to do it, and perhaps it's asking too much of politicians. But unless they agree to kill at least the $150 million in capital outlay they are talking about, it will be another reason any tax increases are even more strenuously opposed in the the final days of this session. Taxpayers whose purses and wallets are shrinking want to see the excess cash sopped up before Santa Fe comes knocking on their adobes for more.

YOUNGBERG MEMORIAL

Here's the details on the memorial service tomorrow for former ABQ GOP State Rep. Eric Youngberg who died last week at 43.

The service will be held on Tuesday, February 2, at 2:00 pm, at First Presbyterian Church, 215 Locust Street, N.E, in Albuquerque. Immediately following, friends and family are invited to the Albuquerque Country Club. In lieu of flowers, the family request that memorial contributions be made in Eric’s name to the Albuquerque Academy or the Explora Children's Museum.

Governor Richardson will lower state flags from sunrise, Tuesday, February 2, through sundown, Wednesday, February 3, in honor of former State Rep. Eric Youngberg.

Meanwhile, the House seat that Youngberg held in the Legislature (Dist. 23) is getting attention. Two Republicans are trying to put it back in their party's column after Youngberg was defeated by Democrat Ben Rodefer in 2008.

Paul Pacheco, who will soon retire from the ABQ Police Department, says he is seeking the GOP nod for the slot as is Republican Tom Molitor. It should be a spirited GOP battle primary for this district on ABQ's West Side and in Sandoval County. Pacheco is already calling Molitor a "California transplant."

Rep. Rodefer will seek re-election for the Dems. No word yet on whether he will get primary opposition. The seat is considered in play for either a Dem or an R.

SMOKEY SANCHEZ DAVIS

He had one of those only in New Mexico political names. "I.L. "Smokey" Sanchez Davis. And, as we recall, when he ran for the state House back in the day he managed to get the entire name on his yard signs. He also got himself elected to the House. Smokey Sanchez, 80, died last week. He also worked with the Bernalillo County Assessor's Office and retired from the federal housing department. By the way the "I" stood for Ishmael. We don't know what the "L" stood for, one of the reasons it makes him a memorable character of La Politica...

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