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Thursday, August 24, 2023

No Let Up In Sight: Record Oil Revenue Showers State But Where's The Plan? Leading Officials Still Cautious As State Languishes In National Rankings Despite Newfound Treasure 

The new record state surplus numbers are indeed "historic" and "unprecedented as the headlines shouted. But is a historic opportunity to use that money for maximum impact passing us by? With the state continuing to rank at the bottom of the barrel nationally and no politicians of note willing to step up and say how that can be reversed with this ongoing record-setting revenue, it appears so.

Gov. Lujan Grisham has presided over healthy increases in the state buget the last several years of this ongoing oil boom but much of the money went for hefty pay hikes, increases across the board in state agency budgets and taxpayer rebates. She has offered no comprehensive overview of what the money--now headed for $14 billion in annual revenue with a state budget of $9.5 billion--of how the cash can deployed to address our entrenched and challenging problems. In fact, she rarely mentions the state's often pathetic standing.

In reaction to the announcement Wednesday by the Legislative Finance Committee of even more gargantuan surpluses, she came with this:

The robust general fund proves that what we are doing in New Mexico’s economy is working. As we see another record year of projected revenue, we will continue building a solid financial future for our state through meaningful and long-lasting investments, always with an eye on stewardship of public dollars and fiscal responsibility.

Now that we have all the money in the world can't the Fourth Floor come up with something stronger than than nothing burger? 

But the Guv's not alone. The common reaction to the vast treasure coming out the the Permain Basin oil fields again surfaced the long-held fear that leading state officials seem to have over the surplus. They simply can't shed their poverty mentality to take a risk-on attitude and dig deep down and start coming up with something imaginative to improve the quality of life here. 

MORE EXAMPLES

State Senator and Senate Finance Committee Chairman George Munoz:

We need to see past the dollar signs and focus on planning for the future because these high-revenue years won’t last. We still have much work to do for New Mexicans, but we have an opportunity as well to move the state toward less reliance on oil and gas.

We know nothing lasts forever, George. But is that all you got? What about the deep-seated problems of the Native Americans in your district? As for the "reliance on oil and gas, the day that ends the state's bounty ends. It's futile to talk about the end when you are letting the present and future slip from your grasp. 

Farmington GOP Senator Bill Sharer sees it this way:

We don’t want to squander $3.5 billion when we can use it for investments that will allow us to weather economic downtowns. The question is, where do you put the money where it grows? New Mexico certainly has issues it needs to address but the focus should be how to take today’s money and turn it into future money.

There they go again. Caught in the past and scared sh...less. And this from a senator who represents San Juan, one of the few counties in America that has been losing population due to the terrible economy there. 

Said Wayne Probst, the new secretary of the Department of Finance and Administration:

We’re living in unprecedented, historic times in the state of New Mexico.I think we’re in a safe place as a state.

Thanks for stating the obvious, Wayne. But where's the plan? 

And we did pick up the irony of this place being called a "safe place" as the crime scourge, the fentanyl madness and the property crime continues pretty much unabated. Why is that, Mr. Secretary? Because we aren't generating sweeping ideas to become something better? (Bingo!)

The new chairman of the House Appropriations Committee, Rep. Nathan Small of Las Cruces, must be reading Wayne's notes:

We're in such a different era. We have the opportunity to exit the roller coaster and get onto a steady climb to a broad prosperity for our state.

Uh, Mr. Chairman, based on billions in surplus forecast for the next two budget years and the billions already accumulated in reserve from the past several years of the oil boom, we have the means to begin our best efforts to achieve that "broad prosperity." Please. Don't embody the ghost of John Arthur Smith. Not with these numbers. But do give us your plan. 

ON IT GOES

On it goes. The political class is fine owning the mountainous pile of money but does not want to be associated with any failures of policy and therefore won't put side by the side the state's dismal rankings and those historic funds.

Perhaps it's time for one of those sometimes dreaded Blue Ribbon Commissions. How about a panel of imaginative and deep-thinking citizens convening for a couple of months specifically chartered with assessing the state's bottom of the barrel rankings and offer specific programs and solutions that might--just might--make a dent in them? 

Right now New Mexico is like one of those billion dollar lottery winners. They're shocked, scared and unable to sort out the meaning of it all. 

THE BOTTOM LINES

We blogged recently that it appeared this space was the only one to report MLG's campaign contributions from a major bidder for a state Medicaid contract. It seems we did have some company, if only briefly. Former ABQ Journal reporter Dan Boyd, now residing in South America, but still addicted to La Politica, sends this February article where the contributions are mentioned. . .The folks at NM In Depth remind us that they also have been on the money and politics beat.

(Okay, so we were lazing on the Italian Mediterranean coast for a month this summer and a few things got by us. That's our excuse and w're sticking to it.). . . 

Independent Moises Gonzalez is also running for ABQ City Council District 2. Loretta Naranjo Lopez is running against him and fellow Dem Joaquin Baca, a member of the Rio Grande Conservancy district, for the seat being vacated by Councilor Ike Benton. We omitted Gonzalez's name when writing about the race Tuesday. The election is November 7. 

This is the home of New Mexico politics.

E-mail your news and comments. (newsguy@yahoo.com)

Interested in reaching New Mexico's most informed audience? Advertise here.  

(c)NM POLITICS WITH JOE MONAHAN
  

Wednesday, August 23, 2023

ABQ's Child Killers; DA Says 12 Juveniles Charged In Homicide Cases In Just Eight Months; Murder of Five Year Old Again Sets off Gun Debate, Plus: City Council Candiate Naranjo Lopez Responds To Critic 

Galilea Samaniego
We've all seen the news of the latest shocking murder in ABQ. A five year old asleep on the floor of her trailer is murdered by gunfire from a group of teens targeting another teen. That came on the heels of another shocker--a 13 year old murdering a woman who was seeking the return of her stolen car. 

If such events were only rare. But now they are not. Bernallio County District Attorney Sam Bregman dropped this mini-bombshell in an interview this week:

Since the first of the year--only eight months--we have twelve juveniles (in Bernalillo County) charged as adults in homicide cases--twelve. It's unacceptable. 

Of course it is unacceptable but what to do?  The explosion of guns in the hands of teens is the obvious issue. Bregman:

When the criminal code was put into place for juveniles back in the 70's it wasn't contemplated that juveniles would be walking around or in a car shooting out windows, shooting 25 times at a trailer where a five year old is sleeping. . . We need to hold everyone accountable. We're going to charge them with adult crimes when we can but we need to spend more resources (on) children.

Bregman said a comprehensive public education program to warn teens of the consequences of guns and crime is needed but that ignores the elephant in the room--unfettered access to guns. 

And for the DA seeking election next year that would mean talking about curbs on guns, a hot button issue that despite wave after wave of violence here and elsewhere goes nowhere in our gridlocked political system.

MLG'S TAKE

MLG (Source NM)
On the other hand, Gov. Lujan Grisham has put her cards on the table--time and again--calling for pragmatic gun control measures. In memory of five year old Galilea Samaniego we run this from her State of the State speech this year:

Lujan Grisham condemned what she called "despicable acts of political violence" and a "sickening scourge of gun violence that has infected our nation." She announced proposals to ban assault-style weapons, allow victims of gun violence to bring civil lawsuits against gun manufacturers, and crack down on black-market sales that funnel guns to ineligible buyers. We all know that we cannot keep our people safe, we cannot keep our police officers and their families safe, if weapons of war continue to flood our neighborhoods.

That fell on deaf ears at the Roundhouse. But Give the executive credit. She has been true blue on guns since her years as a congresswoman. One of these years she may hit pay dirt. 

Meanwhile, DA Bregman can and will charge the juvenile killers as adults so they are not released when they are 21. The the option of a lengthy prison sentence or life imprisonment became easier to impose by a 2020 Supreme Court Ruling.

But it's also prevention not only punishment that the city cries out for as its youth increasingly engage in self-destructive behavior. Tell us if we're missing something. If we reduce the presence of guns in their lives, we reduce the horrific murders. Or are we missing something?

NARANJO LOPEZ PUSHBACK

Naranjo Lopez
Reader Carrie Garcia unloaded on BQ City Council District 2 candidate Loretta Naranjo Lopez on the Monday blog. We offer her equal time and she came with this: 

I recently came across your blog post regarding the Public Employees Retirement Board (PERA) and wanted to take a moment to address the allegations made against me. 

 First and foremost, I would like to emphasize that the accusations of abusing my power within the PERA board are completely baseless. Throughout my tenure since 2005, my primary focus has always been to serve the best interests of the public employees and retirees. I have consistently made decisions in a transparent and ethical manner, guided by the principles of fairness and accountability.

I understand that it is essential to address any concerns regarding my conduct, as it directly affects my candidacy for City Council. I am committed to maintaining the highest standards of integrity and professionalism, both in my previous role on the PERA board and as a candidate. 

Furthermore, I would like to address the claim made by one of the viewers that my opponent is a front runner despite lacking experience in government or other organizations. While everyone is entitled to their opinion, it is crucial to consider the qualifications and capabilities required for effective governance. Experience in government and related organizations plays a vital role in understanding the intricacies of public service, policy-making, and the needs of our community. 

As a candidate with a proven track record in public service and extensive experience on the PERA board, I firmly believe that my background uniquely positions me to address the challenges our city faces effectively. I am committed to bringing my expertise, dedication, and fresh ideas to the City Council, ensuring the best outcomes for our community. 

I remain open to any further discussions or inquiries that may arise. 

Naranjo Lopez is running against fellow Dem Joaquin Baca, a member of the Rio Grande Conservancy district, for the seat being vacated by Councilor Ike Benton. Independent Moises Gonzalez is also on the ballot. The election is November 7.  

This is the home of New Mexico politics.

E-mail your news and comments. (newsguy@yahoo.com)

Interested in reaching New Mexico's most informed audience? Advertise here.  

(c)NM POLITICS WITH JOE MONAHAN 2023

Tuesday, August 22, 2023

The Aftermath: NM Legal Pot To Get Going Over As Industry Battles Too Many Licenses, The Black Market And More; State Senate Panel Set To Examine Our High Times 

Don't call legalized marijuana in New Mexico a bad trip but the embryonic industry is having major troubles and they're attracting the attention of the state senate's interim committee on Corrections, Courts and Justice at a multi-day hearing kicking off in Las Cruces today. 

Questions are piling up for the committee--chaired by Sen. Joseph Cervantes--and the full Legislature to tackle in the aftermath of legalization which MLG signed into law in 2021 with very high hopes for the future: 

The legalization of adult-use cannabis paves the way for the creation of a new economic driver in our state with the promise of creating thousands of good paying jobs for years to come. We are going to increase consumer safety by creating a bona fide industry. We’re going to start righting past wrongs of this country’s failed war on drugs. And we’re going to break new ground in an industry that may well transform New Mexico’s economic future for the better.     

Well, that didn't quite happen, at least not yet. Conversations with cannabis experts reveal where things went off the rails and how to get them back on. Let's take a look.

--An extreme over abundance of mairjuana dispensary licenses. There are some 2,000 of them in a state of 2.1 million people, says NM Cannabis Chamber of Commerce executive director Ben Lewinger. (Not all of them are in use). 

The initial legislation got through without any license limits in part because social justice advocates did not want to shun the little guy and people of color. But that has backfired and the industry is now calling for a moratorium on licenses as multiple dispensaries shutter their doors and are unable to resell their licenses to recoup their investment. Says Lewinger:

The moratorium would be for a temporary time period set by state regulators. The flaw in the legislation was not caught, despite going through multiple legislative committees, and it must be changed if the industry is to deliver on its promise.

That promise, as MLG stated, is to be an economic driver but, Lewinger says, over 30 percent of marijuana sales are conducted by a handful of big guys. That wasn't what the state was sold at the legalization debate. 

Major cannabis businesses sent a letter to MLG last month seeking her support to limit licenses. One  licensee said he counts more marijuana dispensaries in the state than McDonald's and Starbucks combined. 

Marijuana baron Duke Rodriguez said last year:

There’s going to be a settling out and there’s probably going to be about 200 dispensaries that could close in the next 12 to 18 months. If you do the math and you look at Arizona and you look at Colorado, our market can comfortably support about 200-plus dispensaries And we’re way over 400.” 

THE BLACK MARKET

The black market is alive and well.
Our cannabis watchers report that black market marijuana coming into the state--despite a prohibition on out of state imports--is going for about $300 a pound, compared to the $1,200 a pound for the home grown and legal market. 

That cheap cartel marijuana is able to avoid state regulations and finds its way into legal dispensaries (with illicit connections) where marijuana is retailed to consumers at the $1,200 a pound market price plus a 12 percent excise tax. It is a huge loophole. But it's also a law enforcement problem that has bedeviled other states that have legalized pot such as California and Oregon

The upside to the black market-- if there is any--is that the illegal weed passes state quality checks before being sent to dispensaries. That's better than a street dealer selling marijuana that customers could be ill-suited for and even laced with more dangerous drugs. (Not that street dealing has been eliminated, according to one expert, but he says the main problem is the cheap cartel pot getting legitimized.)

Tax collections lag. The state is on course to do about $350 million a year in adult pot sales (not including $200 million in medical marijuana). But, as Rodriguez points out, the state is not collecting the excise tax on all of that. The problem? Many of the small retailers don't know, are ignoring or haven't taken the time to comply with gross receipts tax filings. That has to be top of the mind for Chairman Cervantes and his committee. At a 12 percent excise tax rate the state should be taking in about $40 million a year. The Committee needs to check the numbers. 

NM marijuana legalization turned out to be the ultimate free market experiment with wide open licensing and plant growing limits that have reached sky high heights for manufacturers. But like so many hopeful experiments it is the major producers who are most protected from the oversaturated market. And even they have been burned. Out of state firms gobbled up NM pot businesses at absurd prices early in legalization and are now having difficulty getting their money back. 

Marijuana was never goiNG to be a major "economic driver." Much the same was said when the state 25 years ago legalized gambling at Native American casinos. The rush in the front years is where the big money is made then it settles down. For marijuana it will be same. There is a set limit to how many folks want to gamble or smoke pot. 

Senator Cervantes was an ardent foe of legalized pot but he has to put that in the rearview mirror and join with fellow lawmakers and the Governor in getting our state out of the marijuana mess and giving us an industry that operates within well-enforced regulations and not like the Wild West it has become. 

This is the home of New Mexico politics.

E-mail your news and comments. (newsguy@yahoo.com)

Interested in reaching New Mexico's most informed audience? Advertise here.  

(c)NM POLITICS WITH JOE MONAHAN 2023

Monday, August 21, 2023

MLG Sounds Off On ABQ Crime Woes; Says Her New Appointed DA On Right Track; She Sees "Some Interesting Shifts", Plus: "A "Hot Mess" In One City Council Race? And: Ethics Commission Does MLG A Favor  

It's not everyday MLG sits for a one-on-one TV interview or opines about the ongoing crime woes in the state's largest city, so it was interesting to hear her latest spin on the issue that the GOP is doing their best to tank the Dems over. 

Speaking with KOAT, the Governor did her best to paint a more cheery picture about the city's crime fighting, including a slap on the back for new Bernalillo County District Attorney Sam Bregman who she appointed to the hot potato job this year: 

I don't want it (crime) to be a problem here. I don't care what's going on anywhere else. I'm seeing some interesting shifts. We are now hiring more police officers, including at APD. We're seeing a different approach by the DOJ. You're seeing a DA that's doing what I expect. Get the judges to understand the risks when we've got an arrest and hold these people in jail. So, while I'll keep asking for pretrial detention reform, notice we also put money in the budget that required a different Arnold Tool update and a different set of protocols that appears to be working across the state.

The Guv did not mention ABQ Mayor Keller who continues to take a beating on crime even as he tries to dig out from under it by pushing a number of initiatives, including the proposed Rail Trail, a new soccer stadium at the Balloon Fiesta grounds and the continued opening of Gateway Center for the homeless. 

Bregman said when he took the gubernatorial appointment that he would not seek a term of his own next year, but he soon reversed position with apparently no concerns from the Fourth Floor. 

Bregman is now favored for the June '24 Dem Party nomination. He has drawn one opponent so far.

The days of MLG directly intervening in ABQ's crime crisis are long gone. When she first took office she ordered additional state police to help APD but the plan was a bust. 

The crime-ridden sections of the city are caught in a fentanyl/gang/ poverty loop that seems impervious. Outside politicos interfere at their own risk. 

The races for the four city council races on the ballot November 7 have been mostly brain-dead with no charismatic candidates emerging who might push public safety to the fore. Even conservative Dem City Councilor Louie Sanchez and GOP Councilor Dan Lewis--both possible future mayoral candidates--have held their fire in recent months--even as the relentless ABQ gunfire continues. 

Speaking of that city election. . . 

A HOT MESS?

Naranjo Lopez
ABQ City Council District 2 hopeful Loretta Naranjo Lopez is a member of the Public Employees Retirement Board (PERA) but the headlines she's been generating there are doing nothing to pierce the armor of her rival and frontrunner Joaquin Baca. Reader Carrie writes:

Joe, City Council candidate Loretta Naranjo Lopez is a bit of a hot mess. Did you see the front page article--"New Mexico pension board seeks investigation into one of its members." That headline is about the same as this one from 2018--"New Mexico pension board censures member." That means Loretta Naranjo Lopez has been censured by the PERA board in 2014, 2018 and 2022, and this year the Board is launching another investigation into her misconduct. In the past, she was censured for "making baseless allegations about others, disrupting the board’s ability to carry out its work, seeking reimbursement for ineligible travel expenses, filing a criminal complaint against the board chairman in a disagreement over board seating arrangements, harassing PERA staff and engaging in other unethical conduct." She creates disorder everywhere and that's the last thing Albuquerque needs. 

That seems quite damning but Naranjo Lopez has been elected and re-elected to the board by state retirees since 2005. That's 18 years of service. They must see something her fellow board members don't. We welcome any response she has to the criticism. 

Meanwhile, Baca is an elected board member of the Middle Rio Grande Conservancy District, but has yet to make any splashy headlines that could be used against him.

STILL HIGH HOPES

Azka Naru
There remain high hopes for the delayed but expansive Gateway Center to address ABQ homelessness. The city comes with this: 

Azka Naru will serve as the Gateway Manager, spearheading programming at the City’s newest facility dedicated to connecting folks to services and getting them off the street. 

Dr. Naru is a pharmacist by training and has her Master's in Public Health from UNM. Naru. . .previously worked for the New Mexico Department of Health and then the Human Services Department. She served as one of the operational leads in the statewide COVID medical sheltering and feeding response. Naru led operations in providing over 2 million meals to people throughout the state. . .

During the 2022 wildfires in northern New Mexico, Naru served as the state emergency management lead. 

She probably has about six to nine months to put some points on the board before the sharks (and Alligators) start circling.

BACK TO MLG

Joe Monahan
The State Ethics Commission actually did MLG a favor by nipping in the bud any further probing that could have jumped into the legal arena and cast a wider net: 

Gov. Lujan Grisham’s administration has agreed to reverse the last-minute cancellation of a Medicaid procurement and move forward instead with the original companies selected for contracts to help run the massive program. The agreement comes after the State Ethics Commission investigated the procurement cancellation and prepared to move forward with a lawsuit alleging the cancellation violated the state procurement code. Rather than go to court, the ethics agency and Lujan Grisham administration entered into settlement talks with retired state Supreme Court Justice Judith Nakamura serving as mediator. As part of the settlement, the Human Services Department denies any wrongdoing. But it will move forward with contracts for the four companies originally selected through a competitive process to serve as managed care organizations — Blue Cross and Blue Shield of New Mexico, UnitedHealthcare, Molina Healthcare of New Mexico and Presbyterian Health Plan —starting next July. And the state won’t negotiate a contract with a fifth company, Western Sky Community Care, that now helps run the state’s Medicaid program but wasn’t selected for a contract, even after it applied.  

MLG and company were much better off dealing with retired Judge Judy than a boatload of investigators looking for a corruption caper. 

And the Ethics Commission gets a public image boost and fends off critics who say it is a toothless panel. 

We first blogged of the Medicaid controversy in January when we reported exclusively that Centene, the parent of Western Sky Community Center, a major political player, donated $30,000 to MLG's re-election effort. 

That glaring fact has surprisingly not been mentioned by the mainstream media nor their numerous nonprofit cohorts. But that's why you have us and why. . . 

This is the home of New Mexico politics.

E-mail your news and comments. (newsguy@yahoo.com)

Interested in reaching New Mexico's most informed audience? Advertise here.  

(c)NM POLITICS WITH JOE MONAHAN 2023

 
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