Make That 21

A couple of days ago, Kate Nash noted that 15-20 people are interested in the Lt. Governor job, once Diane Denish vacates to take over as Governor - a position she has filled for a very large part of these past two years while our current Governor has been out exploring various job opportunities:

However, Denish gave no hints as to whether she had a favorite, saying simply in an interview that she is "going to appoint that person when there's a vacancy in that office."

You've probably heard the same names I have: Lawrence Rael, Hector Balderas, Lucky Varela, John Garcia, Joe Maestas, Dan Lopez. A new one I heard the other day is Pojoaque Gov. George Rivera, and then came Stuwart Paisano's name as another possibility.

But it seems there are others, according to Denish's numbers. Any women contenders? Anyone we never heard of? Send me your nominations now. . .

Ok, I don't know about any female contenders, but a quick review of this list makes it clear to me that it is in desperate need of a Republican. Now, I've got quite a few other pans in the fire right now. However, I am willing to put them on hold and accept the nod as Lt. Governor.

Now, I know it's a tough job that will require all of my attention. After all, the day to day responsibilities include.... um, consist of.... uh, well, let's just call it a tough job and leave it at that.

I'm up to the task and am willing to serve. Now, I haven't I had a chance to talk to Lt. Governor Denish about me filling the position, but I'm sure once she reads this post, she will quickly see that I am the only qualified Republican on the final list of contenders. As such, if our soon to Governor opts not select me, then we'll all know that it partisan politics as usual at play.

Happy New Year!

The Most Pressing Issue of the Day

New Mexico is entering full economic crisis mode. We're facing a half a billion dollar budget shortfall that in all likelihood will continue to worsen through 2011. Jobs are disappearing in our capital city at an ever increasing rate (subscription):

"Overall, the Santa Fe job market has stagnated in recent months, with only five of the area's 12 (industry categories) adding jobs," said the report, released last week.

Santa Fe lost 300 jobs at area hotels and restaurants in November, the report states.

Occupancy rates for Santa Fe hotels have been crashing over the past three months.

Hotel operators have acknowledged there have been layoffs in recent weeks. In November, only about 44 percent of hotel rooms were filled, down from 53 percent for the same month in 2007. It was the first time the average occupancy rate had dropped below 50 percent in 10 months.

And, the job picture for the state as a whole is not much better:

According to the latest numbers from the U.S. Bureau of Labor Statistics, unemployment in New Mexico rose by more than one third — from 31,000 to 41,700 persons — between November 2007 and November 2008.

The state’s unemployment rate rose from 3.3 percent to 4.3 percent over the same time period. New Mexico lost 3,700 manufacturing jobs, reflecting layoffs at Intel, Eclipse Aviation and TMC in Roswell, among other staff reductions. Construction jobs fell by 2,500 over the past year.

But, it looks like at least one legislator has decided that there are more pressing issues to deal with the then the looming half a billion dollar budgetary crisis and ever shrinking job market. After her last campaign, Representative Mimi Stewart has come to the conclusion that the most pressing issue of the day to is the need to abolish the electoral college:

An Albuquerque lawmaker plans to introduce legislation that would align New Mexico with several other states that are seeking to do away with the electoral college system for presidential elections.

Four states — Hawaii, Illinois, Maryland and New Jersey — have already approved bills calling for a system that would use the national popular vote to determine who's elected president.

Rep. Mimi Stewart, D-Albuquerque, who plans to introduce a bill in the upcoming legislative session to do likewise, said she's heard repeated gripes from constituents who dislike the current system.

"It's a fairness issue," Stewart said Monday in a telephone interview.

"Mathematically, 11 states could currently choose who's elected (president). I think people are tired of the electoral college."

It's good in these times of need that we have legislators who understand our priorities.

What Happens to the Money?

When government starts spending money, it has a habit of just disappearing. The more money there is, the faster it disappears. It's the one thing that government seems to do exceptionally well. Here in New Mexico, we've watched the Richardson administration burn through billions of dollars with little to show for it.

[Side note: Is it my imagination, or has some portion of I-40 between Tramway and I-25 been under construction for at least six straight years with little improvement?]

Of course, the government's make-the-money-disappear act is not unique to New Mexico. Over the last few months, the federal government gave away hundreds of billions of dollars to bail out the largest names in banking. Now, the question is: "Where did the money go?" And, the answer from the banks is: "We're not telling?"

But after receiving billions in aid from U.S. taxpayers, the nation's largest banks say they can't track exactly how they're spending the money or they simply refuse to discuss it.

"We've lent some of it. We've not lent some of it. We've not given any accounting of, 'Here's how we're doing it,'" said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. "We have not disclosed that to the public. We're declining to."

The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what's the plan for the rest?

None of the banks provided specific answers.

Billions gone just like that. What do we have to show for it? Nothing. Of course, this bailout is not a one time shot in the economic arm. In less than a month, our new president will be sworn into office, and shortly thereafter, we can expect this process of giving away hundreds of billions of taxpayer money to be repeated again and quite possibly again.

I should probably be arguing against more economic bailouts, but at this point that would nothing more than an exercise in futility. The course has been set and the money is going to be spent. So, the only question that remains is whether or not, those who receive this next round of billions in taxpayer money get to "simply refuse to discuss" how the money was spent.

Bloated Government Contributes to Crisis

Time and time again, it's been written here that Governor Bill Richardson's legacy amounts to spend, spend, spend. Of course, this has led us to the half a billion dollar budget crisis in which we now find ourselves.

Most everyone knows about the big ticket items. The very generous gift to billionaire Branson to pursue his space dreams. The even more expensive train, which will cost us tens of millions of dollars every year, and has resulted in a severly underfunded transportation system. But, what never seems to get quite the attention it deserves are the millions of dollars in newly created political payback jobs that have been handed out under Richardson:

Five years ago, just eight of Gov. Bill Richardson's political appointees made more than $100,000 a year. Today, more than 100 earn at least that much.

Also up under Richardson: the number of gubernatorial political appointees, formally known as exempt employees.

In his first 15 months in office, the number of appointees scattered throughout government grew from 167 to 307. Today, there are 468 gubernatorial appointees in exempt positions.

That growth in the patronage, or spoils, system of state government is one of the legacies of Richardson as he prepares to vacate the Governor's Mansion for a slot in Barack Obama's Cabinet.

Now, the only question remains is whether or not Lt Governor Denish will do the right thing and clear government of "the spoils" when she takes over?

A Move Back to Family Time

Yesterday, after church the family came over to our house for a late lunch. I made seco de pollo served with rice and accompanied by salad and bread. The cost to feed 16 people was just over $30. Not including the time at church (the Jewish guy was excused and did the cooking), we spent a little over four enjoyable hours together. Everyone had a great time.

Our kids went home with their visiting cousins to spend the night at their grandparents, which meant Roxanne and I had a kid free night. We haven't gone out to catch a movie in awhile, so we decided to go last night. The two tickets along with a single popcorn and a shared large soda cost just over $30. I couldn't help but think during the movie that I would have been just as happy watching a movie at home.

When I consider the two times yesterday I dropped $30, I have to admit I felt I got a lot more bang for my buck (and simple enjoyment) from the lunch at home than I did from the movie in the evening. Like many others, we're watching our budget a lot closer these days, and I have to tell you it will probably be sometime before I decide to go to a movie again. I can't imagine that I'm alone, so I wouldn't be surprised if we see a number of movie theater chains go under in 2009.

But, there is a positive side to the economic crisis in which we now find ourselves - a return to family values. You're going to find my more and more families spending time together, or in some case just staying together:

Circuit courts across the country report downturns in the number of divorce and separation filings. Cook County's Circuit Court in Chicago saw a 5% decrease in filings -- about 600 cases -- in the first three quarters of 2008 compared to the same period last year. Similar drops were reported in other cities across the country.

This domestic situation is also confirmed in a poll by the American Academy of Matrimonial Lawyers. The AAML surveyed its members -- all divorce lawyers -- and found that 37% of them have seen a decrease in the number of couples seeking a divorce, while just 19% saw an increase in divorce cases.

In past generations, people found a way to make a marriage work for a variety of reasons - including economic neccessity. I also read somewhere, although now I can't fnd the post, that people are not going to be as quick to pack up and move arond the country. This means we'll be seeing people stay closer to their extended family. I've got to believe that socially this will be much better for our society as a whole.

New Mexico Finance Authority

Let's assume that Governor Richardson is not indicted by the grand jury over the CDR pay to play scandal. Assuming that's the case, his confirmation by the Senate will still go through, and he'll be departing the Land of Enchantment for the Beltway.

However, we still have a problem. The New Mexico Finance Authority Board contains no less than four cabinet secretaries as well as the State Investment Officer:

Ron Curry

Secretary

Environment Department

Katherine Miller

Secretary

Department of Finance & Administration

Fred Mondragon

Secretary
Economic Development Department

Joanna Prukop, Board Secretary

Secretary

Energy, Minerals & Natural Resources

Gary Bland

State Investment Officer

State Investment Council

So, even if you were to believe that it was just a bizarre coincidence that a company would be awarded with a $1.5 million fee after making two large contributions to the Governor, the fact remains that no one can find the contract, and those cabinet secretaries who are supposed to be looking out for us were at the very least negligent in their duties.

Which raises the questions, if the Governor leaves, and Lt. Governor Denish takes over, will she immediately remove all of those listed above from their positions?

Pay to Play Hoopla

Heath Haussamen takes the Journal to task for their assertion that the pay to play grand jury investigation into the Governor's office involvement with CDR Financial is old news:

The Journal article, which you can read by clicking here, called Monday’s report from Bloomberg.com -- the first to publicly reveal the grand jury investigation -- “old news,” at least “for the most part.”

Why is that? Well, the Journal article goes on to recount the fact that the newspaper had already reported in August and again in October on the federal investigation into the fact that CDR Financial was paid more than $1.4 million on a contract it won in 2004 to advise the New Mexico Finance Authority on interest-rate swaps and other work related to a $1.6 billion transportation project.

Marjorie Childress notes that according to a ranking by political reporters New Mexico is the third most politically corrupt state in the nation:

Outcome of a 2003 report that revealed the opinions of statehouse reporters? Whoa. We shot way up there! Reporters who cover the Roundhouse in New Mexico think it’s a pretty darn corrupt state — we’re ranked No. 3.

There are few convicted officials in New Mexico compared to other states… but a class of reporters who think their subjects are totally corrupt.

So, my friend who sent me the article asked, does this mean our reporters are biased? Or does it mean we have really poor ethics laws and really poor prosecution by U.S. attorneys in our state?

It's interesting to me that Marjorie puts the blame on either the lack of ethics laws or poor prosecution by the U.S. attorneys. She seems to forget that the highest ranking law enforcement official in the state is the independently elected Attorney General. Why not hold him, or in the recent past, her accountable for failure to prosecute?

Now, anyone who has been reading this blog for any length of time knows that pay for play politics has been business as usual under the Richardson administration for for quite some time - basically, since the Governor was sworn into office. Heck, on some occasions, it even seemed like extortion. You know, you give once, and you can expect to be "encouraged" to give again and again.

Make no mistake, we do not need new ethics laws to deal with this problem. We just need to enforce the laws on the books. The problem here is not the size of the political contribution. The problem is the willingness of those who receive them to reward the contribution with lucrative contracts, or special treatment.

Now, yesterday the Governor held a press conference, and then ran from the room when questioned about this latest scandal. You might be wondering how Richardson thinks he can get away without making any statement on the subject? Simple, he's done it many times before. No matter how much coverage a particular Richardson scandal has received, it always blows over in a day or two if the Governor just chooses to ignore it.

So, what's different this time? It all comes down to timing. The national press attention on the Illinois Governor indictment, our President-elect's home state, means that the nation is focused on this issue. It also means that it is unlikely to go away in a day or two. And, unfortunately, for Governor Richardson, his little problem is going to finally get the attention it deserves.

Regulators to Invest in Our Future

The legislative and executive branches have done everything in their power to bankrupt our state in recent years by "investing in our future." There was the Rail Runner investment in our future, which has resulted in an increase in gross receipts taxes to support it's operations - look for more increases to come in the future. Then, there was the Spaceport America investment in our future, which has also resulted in new taxes.

Now, it looks like the regulators are eager to get into the action. The New Mexico Public Regulation Committee (PRC ) would like to invest in our future to expand rooftop solar energy programs, practically ensuring future increases in the cost of energy in New Mexico (subscription):

New Mexico regulators are considering a proposal that would expand rooftop solar energy programs at the state's largest utility.

The program, under which Public Service Company of New Mexico would pay a premium to buy electricity from rooftop arrays, is part of the state Public Regulation Commission's efforts to expand production of renewable energy in the state.

The program's backers say it will create an incentive to expand nonpolluting energy production. By putting the power systems in the middle of the city — "distributed generation" — it will also reduce the need for new transmission lines, backers say.

"We're investing in the future," said PRC member Jason Marks.

Oh yeah, nothing like working towards bankrupting us in the present by "investing in the future." Anytime anyone in New Mexico government says "we're investing in the future, " you can bet your bottom dollar that what they're really saying is "we're going to be increasing your expenses in the VERY near future."

Surprising... All Things Considered

With the exception of Senator Bingaman, New Mexico has an all freshman delegation representing us in Washington. It has long been speculated by many, myself included, that this would result in a serious decline in the number of federal dollars coming into New Mexico. However, this latest announcement seems to contradict assumption (subscription):

More of the nation's space warfare operations are moving to Kirtland Air Force Base next year.

The Battlespace Environment Division — with 175 jobs and an $89 million annual budget — is transferring from Hanscom Air Force Base in Massachusetts to Kirtland next year as part of the recommendations of the 2005 Base Realignment and Closure Commission.

The Air Force plans to break ground in January on the 145,000-square-foot, $53.5 million Battlespace Environment Laboratory, with a completion date of July 2010.

Hmm.... interesting.

Good to Know They're Working Hard Together

With New Mexico facing a half billion dollar shortfall due to a gubernatorial spending spree the likes of which New Mexico has never before seen. It is good to see that the dynamic duo are working hard together...

Lt. Gov. Diane Denish and Gov. Bill Richardson have been trying to find time for a one-on-one meeting, but it’s been difficult.

“He’s out of town this week,” Denish said of Richardson on Wednesday. “I have a meeting scheduled next week. We are trying to maybe have a meeting this Friday. It depends on his schedule.”

Well, at least they try to fit in a quick meeting to deal with the budget crisis on those rare occasions when the visiting Governor's schedule allows.

Where Did All of the Money Go?

So, we've got this half a billion dollar budget shortfall we're facing in New Mexico, and you're probably scratching your head, and wondering, "Where did all the money go?" After all, oil and gas had reached tremendously high levels over the last few years, and state government was awash in cash - our cash I might add.

Well, to answer the question, "Where did all the money go?" All you need to do is take a look at this inflation adjusted chart (for my critics) that our friends at the Rio Grande Foundation (RGF) kindly put together:

Whoa! Talk about your out of control spending. You'll notice it really started to climb in FY 2002. Guess whose administration we have to thank for our current economic predicament? The chart above was published in RGF's publication New Mexico’s Taxpayer Protection Act: One Small Step for Taxpayers? In the paragraph immediately following the chart, they made the following statement:

On one hand, you don’t want government to spend every nickel that comes during good times or else you will have a vicious boom and bust cycle.

Hmm, seems like a simple concept to grasp. Of course, neither our state nor our national leaders seem to grasp this very simple concept. Yes, I lay the blame on Republican's nationally as much as I do on Democrats in New Mexico.

If you want the actual details of where our hard earned money went (remember: we earn it; they spend it), I suggest you download and read RGF's recently released Piglet book. Pull out a calculator and add up all of those little giveaways, and you'll see what we need to cut in order to make up the budget shortfall.

Health Care Reform Should Wait

Universal health care proponents are upset that providing taxpayer funded health care for everyone seems to be taking a backseat while legislators begin to struggle with the half a billion dollar budget shortfall:

“There is tremendous interest in both the advocacy and constituent communities to focus on health care reform during the upcoming session,” said Roxanne Spruce Bly, executive director of Health Action New Mexico, in an interview with the Independent. “For many voters, health care was a top priority and a key reason why they supported change at both the national and state level.”

Indeed, achieving universal health care was not only a major plank during the Democratic presidential primary, it was also a major issue in 2008 during the short legislative session and the special session.

Still, the results were minimal. There has been no movement on bills that would ensure New Mexico’s 400,000 uninsured people gain access to health care, or that would contain the rapidly increasing costs.

“The time to act is now,” Bly said. “In 2006, New Mexico commissioned a study which showed that if we continued to do nothing, the cost of our health care system will increase from $6 billion to $8 billion by 2011.

Ok, let's state the obvious. The time to act is NOT now. Forget the fact that we are facing a budget crisis this year that in all likelihood will be worse next year. Instead, consider that achieving universal health care was a major plank during the Democratic presidential primary. Well, the Democrats won on a federal level and New Mexico's state lawmakers would be wise to take a wait and see attitude until it is clear how those national Democrats plan on delivering on their promises.

Obviously, I don't want to see a universally mandated and taxpayer funded health care system. But, the Democrats now control the House, the Senate and the Presidency. So, I don't really have much say in the issue.

As to the "New Mexico commissioned a study which showed that if we continued to do nothing, the cost of our health care system will increase from $6 billion to $8 billion by 2011." I'm sorry, but if state government takes on the task of managing all aspects of the health care system, I can practically guarantee that we will see even more than a $2 billion increase over the next two years.

All you need to do is look at the state's latest budgetary fiasco regarding the hiring freeze (subscription):

After Gov. Bill Richardson announced a state government hiring freeze, his administration put 416 people on the payroll before it took effect.

Members of the Legislative Finance Committee, confronted with a projected state budget shortfall of about $454 million, weren't happy with the news Wednesday.

"I think it was disingenuous," said Sen. Sue Wilson Beffort, R-Sandia Park.

To call adding $1 million to a state payroll budget while supposedly instituting a hiring freeze "disingenuous" is putting it nicely. I would call it "criminal." How can anyone believe that putting these folks in charge of the health care system is going to reduce costs. They can't even reduce costs when they are implementing cost cutting measures.

$320K per Job - What a Deal!

Wish lists abound for the latest proposed once in a lifetime federal government giveaway package. First, Wall Street got $700 Billion from to keep banks from closing and pulling credit off the table. Granted, that didn't seem to have the desired effect, but as the saying goes, "Try, try again."

Now, the latest greatest big idea is to give state and municipal governments all across the country $500 - $700 Billion in economic stimulus money. And, these government entities are just full of great ideas on how to use the money. Look no further than Albuquerque's very own, Mayor Martin Chavez to see true economic genius at work (subscription):

Chávez unveiled a $1.6 billion wish list of projects Tuesday that includes $885 million for new renewable-energy power plants in and around Albuquerque and $90 million for a streetcar down Central.

The projects on Chávez's list include two West Side solar power plants with a $745 million price tag, $34.5 million for a solar array at Albuquerque's airport, and $72 million for energy-related retrofits to city buildings, along with tens of millions of dollars for city street projects.

Chávez said the $1.6 billion would be an unprecedented infusion of federal money, but it's unclear whether the city projects would be ready to go and therefore eligible for the money.

Speaking Saturday in his weekly video address to the nation, Obama said state and local officials would have to be ready to move quickly or else lose the money — how quickly has not been determined.

"We think they all qualify," Chávez said.

He estimates his wish list of projects would create 5,000 jobs of all kinds by 2010.

Wow, what a truly amazing accomplishment! For a mere $1.6 Billion, we could see 5,000 new jobs created. Let's see, I guess that would work out to a cost of about $320,000 per new job created. What a bargain! Of course, most important of all is that we would finally get that streetcar that the Mayor has been lusting after for quite some time. You know, the one that has been killed time and time again.

Like, I've said in the past, I've got a layman's understanding of the economic policy at best. I'm sure that the fact that we continue to lose millions of jobs after the bailout is just... well, just an unfortunate coincidence. I'm sure giving hundreds of billions of dollars to municipalities must somehow be a great idea - although exactly how escapes me.

Yeah, I'm probably just a little too slow to understand all of this. Giving folks like Mayor Chavez money to spend, so that they can create new jobs at $320K a pop probably makes perfect sense. Oh sure, I know some of you may point out that the private sector can do it for less:

ACCION New Mexico jumpstarted the local car and recreational vehicle detailing business Recapturing Vehicles with an $8,000 loan. The owner of Recapturing Vehicles, Jason Burns, had been turned down by five banks for a loan. Now, his company grosses $100,000 annually and Burns has two full-time employees.

But, you just don't understand the way government works. Why spend an average of $2,500 to create three new jobs when you can spend $960,000?

See the government knows what they're doing. Why just consider for a moment that in recent years the City of Albuquerque (same goes for the state and the nation) has had the largest budgets in their history to spend. Consider how many jobs they've been able to create during that time, and look at how strong our economy is doing because of it. It only makes sense that if we grow our government even more, we'll see an even greater impact on the economy.

What we're experiencing now is only the beginning - spend, spend, spend. Look where it got us today, and imagine where it can get us tomorrow.

Taking Just a Pinch

Chances are that if you hear someone is promising to give you a good, quick pinch, you are going to move out of the way. Why? That's simple. Pinches hurt, and we're not just talking about pinching body parts.

You can be rest assured that when the government decides to start doing pinching, it is going to hurt (subscription):

The gap between expenditures and state revenue has grown steadily over the last three months as New Mexico increasingly finds itself being pulled into the national recession. For just the third time in 20 years, the state now faces the prospect of a revenue decline during the current budget year.

Miller and other members of the Richardson administration said Monday that they believe the combination of recouping unspent infrastructure appropriations, imposing minor budget cuts and a hiring freeze on state agencies, and taking a pinch of help from the state's cash reserves can balance the budget for the current fiscal year that ends June 30.

Ok, let's start by repeating the obvious. Facing a budget deficit should not have come as big surprise to anyone. We have had to do it three other times in the last the twenty years. You'd think government would learn. You can't spend, spend, spend in good years, because inevitably there will be lean years, and then you're going to have to make some cuts.

Now, what should the government do first to fix this problem? Well, that's relatively simple. They should look at all new recurring services and expenditures that have been added since Richardson came into office, and start cutting them.

The thought that they can fix this problem by simply "recouping unspent infrastructure appropriations" is ridiculous. Let me re-state that. If you think this is a one-time momentary blip in an otherwise booming economy, than it makes sense to just cut back on previously planned expenditures.

But, if you face reality and acknowledge that next year is likely to be just as bad, if not worse, then you realize that approach is nothing more than sticking a finger in a collapsing dam to plug a hole. The only thing worse than that approach is "taking a pinch of help from the state's cash reserves."

Taking a pinch from our reserves is the equivalent of robbing our children blind while they sleep. Rather than readjust to a budget that is within our means, we are talking about guaranteeing higher taxes on our children.

Plus, consider that this economy could sink further before it begins to rebound. If we're deciding to "pinch" at the first sign of economic weakness, then we're practically guaranteeing that we're going to be amputating when this gets worse, and it will get worse before it gets better.

Moving to the Left

I've got admit. I'm at a loss as to what exactly this recent statement by our soon to be Governor could mean (subscription):

Speaking at Albuquerque Interfaith's 15th anniversary celebration, Denish said government will need advocacy groups like Interfaith to help retool an ailing state and national economy.

"For so long, we thought business made the sole determination about who gets the jobs, but what you and I know is that the community helps to make those decisions, by working together and by organizing," she told about 150 people at Our Lady of the Most Holy Rosary.

Albuquerque Interfaith is a nonpartisan community organization that includes 31 member congregations, unions, public schools and nonprofits. The organization advocates, among its economic stimulus proposals, workforce training programs and services for trainees that include child care, counseling and transportation.

Ok, now this is a scary thought... businesses will not get to make the decisions about whom they hire to fill jobs. Am I reading this wrong? The left has historically tried to make community synonymous with government (think: "it takes a village"). Does Lt. Governor Denish envision a future where the government dictates who has what job? I sure hope not. I believe that experiment already failed.

I looked for a website for Albuquerque Interfiath, but it ididn't come up in the first few Google returns. However, this did.

The Backhanded Compliments Just Keep Coming

So, Barb from Democracy for New Mexico left a comment to yesterday's post about Governor Richardson failing to do the right thing with regard to vacating his position, so that Lt. Governor Denish can do the job she is inevitably going to inherit:

Plus no-one in their right mind would leave their elected post before being confirmed by the Senate for a Cabinet post.

Yeah. People who care about the company/organization/state they are leading step aside all the time to make way for new leadership before their next job is in the bag. People who believe in the leadership skills of their successor are more than willing to turn over the reins. But, therein lies the problem.

Although I am more than willing to give our soon to be Governor the benefit of the doubt that she has what it takes make the tough decisions to turn around the financial pickle in which we now find ourselves, it doesn't seem our outgoing Governor feels the same (subscription):

Both Richardson and Denish assured reporters the transition will be smooth, but said Richardson won't cede authority until he leaves.

"On some of the major budget items, obviously I'll make the decisions but she's going to have a role in them," said Richardson, who was nominated by Obama on Wednesday.

Are we witnessing an incredible display of machismo here or what? Where's the outrage Barb? This is worth repeating:

Obviously I'll make the decisions but she's going to have a role in them.

Governor Richardson is talking about our soon to be top executive the way that some people talk about incapacitated family members before putting them into a retirement home.

Denish, who was joined Thursday by her husband, Herb Denish, said she intends to make decisions on whether to retain members of Richardson's Cabinet on a case-by-case basis.

More urgent, she said, is addressing a budget shortfall that's ballooned to more than $500 million in the past three months.

"The people of New Mexico expect us to get down to business," Denish said.

Obviously, Lt Governor Denish understands the problem at hand - a half a billion dollar deficit. And, she's dead right, the people of New Mexico expect her and the legislature to get down to business. I mean who are we kidding here? The Governor hasn't been around to focus on the state for the last two years. Now, we're supposed to believe that while he's away "at least half the time" - his words - in Washington going through the confirmation process he's going to be able to "get down to business."

Although Richardson intends to call the shots while awaiting confirmation by the U.S. Senate, he said he'll mix some of Denish's proposals — such as implementing safeguards on payday lending — into the legislative agenda he'll present to state lawmakers on Jan. 20.

"We're going to have to incorporate some of her ideas on the issues she cares about in the budget," Richardson said.

He also voiced confidence in Denish's ability to lead the state.

WOW. Talk about your backhanded compliments. For goodness sake, "We're going to have to incorporate some of her ideas on the issues she cares about in the budget." Gotta love it. He has to incorporate some of her ideas. Could he be any less enthusiastic?

Let's get real here. Denish, not Richardson, is going to have to govern when this budget comes into being in June 2009. If he had "confidence in Denish's ability to lead the state," she'd be taking his ideas under advisement while making budget decisions - not the other way around.

This is a all a recipe for disaster and brings us full circle back to the heart of Barb's original comment. Whether it's okay to just let people stay in their current job while waiting for their next gig's contract to be signed.

Well, Barb let me tell you how this works in the real world. When you find out your current key employee is moving on, you wish them well and send them on their way. You don't wait until their new employer has finished crossing all the t's and dotting all the i's because it in THE EMPLOYEE'S best interest.

Make no mistake, Governor Bill Richardson works for us, the people of New Mexico, not the other way around. We hired him. We pay him. And as his employer, it's time for the people of New Mexico to wish Governor Richardson well, and show him the door. If we don't, we only have ourselves to blame when our problems are compounded because we find ourselves dealing with a key employee transition right in the middle of the most important legislative session in recent history.

The "Me First" Commerce Secretary Nominee

60 Days. That's all we have. 60 Days to deal with a budget deficit likely to exceed a half a billion dollars. 60 Days for a whole slew of freshman legislators to figure it all out. 60 Days that will have a tremendous impact on the future of public education in New Mexico. And, guess who plans to throw a wrench into the whole system?

“This is by no means an easy decision and brings with it a mix of emotions. I am proud of what we have accomplished in New Mexico during the past six years and we’re not done yet. I will be here to deliver the State of the State address when the Legislature convenes on January 20. I will present an aggressive, responsible and balanced budget plan as well as a full slate of important initiatives. I will not resign as Governor until I am confirmed by the United States Senate, and until then I will continue to work tirelessly on behalf of all New Mexicans.

Rather than step aside and let the next administration take on the challenges that face us, our outgoing Governor is going to stay in the saddle as long as he possibly can. Because... well, because he feels like it.

This will go down in history as the worse decision of his political career. Worse than the Wen Ho Lee fiasco. Worse than bankrupting our transportation system by building a train we can't afford. Worse than giving a billionaire upwards of a $100 million dollars to pursue space dreams.

Admittedly, as a partisan political player, I should be thrilled by Governor Richardson's actions. His commitment to keeping Lt. Governor Diane Denish from taking over the reigns during this time of crisis is tantamount to declaring, "the lady just can't do the job." It is the ultimate slap in the face.

The result of declining oil and gas revenues this year and into next mean that some very unpopular decisions are going to have to be made over the next two sessions, and our soon to be Governor Denish will be kept out of the loop. However, she will receive all of the blame.

So, as a partisan, I should be thrilled that Governor Richardson has practically ruined any chance of Diane Denish to become re-elected Governor in 2010. However, as a New Mexican, I am extremely dismayed. The next two years are going to be tough enough, and Richardson just made them tougher.

Cross Your Fingers That Today's the Day

It is being widely reported that today is the day that President-elect Obama will announce Governor Richardson's selection as Secretary of Commerce [Hat tip: Heath Haussamen], and it's not a moment too soon.

It seems that there is growing movement, already 4,000 strong, by Chinese-Americans in the Silicon Valley to stop Richardson's appointment to Commerce Secretary:

In a move bound to create political tension between Latinos and Asian-Americans, a group of Chinese-American activists in Silicon Valley has launched a nationwide grass-roots movement to fight President-elect Barack Obama's nomination today of Bill Richardson as commerce secretary.

The group is upset at the New Mexico governor for his handling of the nearly decade-old case of Taiwanese-American Wen Ho Lee, a former nuclear scientist at Los Alamos National Laboratory. U.S. officials once suspected Lee of giving nuclear secrets to China when Richardson was President Clinton's energy secretary.

The Chinese-Americans say they realize that challenging the nomination of Richardson, 61, the nation's most high-profile Hispanic politician, will ruffle the Latino community, many of whose leaders felt he should have been named secretary of state instead of Sen. Hillary Clinton.

But the Chinese-American group insists that Richardson's refusal to acknowledge making serious errors in the case makes it a moral imperative to oppose his nomination to Obama's Cabinet. They say their criticism of Richardson has nothing to do with him being Latino but everything to do with his lack of judgment in the case.

Which raises the question, if the announcement does indeed occur today, will Governor Richardson immediately do the right thing and tender his resignation? Or, will he hold onto power in order to insert himself in political machinations of the Democratic wing of the legislature until such time as he is confirmed by the U.S. Senate?

Tales of Richardson calling senators up to his office to lobby them on the leadership battle have circulated for weeks around the Capitol and were heard by more than a few lawmakers, including Sen. Mary Kay Papen, D-Las Cruces, a Jennings supporter. Papen said Monday she heard the same thing, although she didn’t know the names of those summoned to the governor’s fourth-floor Roundhouse office.

I, for one, am really hoping the Governor Richardson does the right thing for once, and puts New Mexico first. No, it's not because I'm concerned about the political infighting of Senate Democrats. Something much larger is at stake here:

Gov. Bill Richardson is backing a proposed overhaul of the state's school finance formula, which will cost an additional $350 million to implement.

Richardson said Tuesday he supports the increased funding for schools but wants voters to decide how to raise the extra money, possibly through a referendum or constitutional amendment.

Uh oh, there it is, and it's hard to miss. Okay, I added the bold emphasis. If I hadn't, some of you might have missed it. Raid me once, shame on you. Raid me twice, shame on me. This is the first official acknolwedgement that a second raid on our Permanent Fund is on the table.

Folks, it's only been five years since the first raid. Heck, the original changes have yet to run its course, and they're already putting another raid on the table:

Amendment 2 would increase the annual distribution rate from the Land Grant Permanent Fund in fiscal 2004 from 4.7% to 5% of the fund's average market value over the previous five years. The rate would increase to 5.8% starting in the 2005 fiscal year and continuing for the next eight years. The rate would then drop to 5.5% for the next four years, after which it would decrease to 5%.

The distribution rate could not exceed 5% if the five-year average market value of the fund dropped below $5.8 billion.

Legislators could set the rate at 5% at any time with a three-fifths majority of each legislative chamber.

The Land Grant Permanent Fund was established to fund education with income earned on assets, including revenue from oil and gas royalties earned on land granted to the state by the federal government when New Mexico attained statehood.

Here's hoping the today is the Governor's big day, and not a moment too soon.

We're Officially in Economic La La Land

No, I'm not talking about New Mexico. I'm talking about the official state of the U.S. economy (subscription):

Put it in the history books: The country was officially diagnosed with a job-killing recession Monday, and woeful new evidence showed that it's getting worse. Wall Street convulsed at the news, tanking 680 points, and Washington pledged even more help to try to ease the pain.

With the economic pain likely to stretch well into 2009, Federal Reserve Chairman Ben Bernanke said Monday that he stands ready to lower interest rates yet again and to explore other rescue or revival measures.

Rushing in reinforcements, Treasury Secretary Henry Paulson, who along with Bernanke has been leading the government's efforts to stem the worst financial crisis since the 1930s, pledged to take all the steps he can in the waning days of the Bush administration to provide relief. Specifically, Paulson is eyeing more ways to tap into a $700 billion financial bailout pool.

On Capitol Hill, House Speaker Nancy Pelosi, D-Calif., vowed to have a massive economic stimulus package ready on Inauguration Day for Barack Obama's signature.

Admittedly, I'm not an economic genius, and I don't have the impressive credentials of Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, or the elevated position of House Speaker Nancy Pelosi, but I can do basic math.

The federal government printed anew and then injected 700 billion previously non-existent dollars into the system. It has done nothing to stabilize the economy. Quite to the contrary, it has further destabilized the economy with massive day to day shifts in the market the likes of which we've never experienced before in the history of this country:

The Dow lost 679.95 points to close at about 8,149. There have only been three days in market history with bigger point losses for the Dow—the Monday after the Sept. 11 attacks, and Sept. 29 and Oct. 15 of this year.

Think about that for a moment. Since the Federal government has come to the nation's "rescue" with an "economy stabilizing" bailout, we have experienced three of the worst market declines in the history of the country. Granted, we have also had tremendous upward swings as well during this short period of time:

During the five-day win streak, which began when word reached Wall Street that President-elect Barack Obama would name New York Federal Reserve chief Timothy Geithner as his treasury secretary, the Dow had gained 1,276 points, and the S&P 500 had surged almost 20 percent.

In normal times, the markets might gain that much in two good years, not five days. So analysts said a pullback was understandable.

Analysts say a pullback was understandable. Give me a break. There is nothing understandable about what is occurring. We are gaining and losing a trillion dollars in the market from one week to the next, and in some case from one day to the next. When that is happening, it means that no one knows what the real value of the market is.

Ok, the $700 billion economic stimulus package didn't work - no surprise there. Now, what's the federal government propose to do? Well, the geniuses in Congress are going to solve America's ills by putting another $500 billion into the economy. Yeah, that makes sense.

That's doomed to failure for several reasons, but let me just give you one to consider:

Credit card companies will reduce lending by more than $2 trillion over the next 18 months in a dangerous and unprecedented move for US consumer spending, Oppenheimer & Co.'s Meredith Whitney said.

Lenders that may have difficulty raising capital and want to avoid losses from rising loan defaults are pulling in credit lines, Whitney said in a research note dated Nov. 30.

More than 70 percent of US households have credit cards, she said.

You following this? The government introduces $1.2 trillion in new money, and the credit card companies withdraw $2 trillion. Translation: in about 18 months time, we will have at a minimum $800 billion less in the economy. It also raises the question of who is pocketing that $700 billion that the government gave to banks (aka credit card companies) to keep money in the system.

So, what's this all mean? In the first quarter of next year, we're going to see many major retailers and manufacturers file bankruptcy [Note to self: use gift cards recieved immediately.] By fourth quarter of 2009, that's next year folks, we will have the worse holiday shopping season in the history of the country - 70 percent of US households have credit cards and they're about to lose them.

Of course, like I said, I'm no economic genius, so I guess I could be wrong. What does this all mean for us in the Land of Enchantment? Well, I urge you to pay special attention to how those in the state government opt to spend our money this upcoming legislative session.

Keep in mind that the permanent fund and New Mexico's various pension fund obligations are invested in the market. Our financial concerns are not just about declining tax revenues. In the very near future, we are going to wake up and find that all of the billions we thought were in permanent and pension funds will have vanished through loss of market value and dollar devaluation, and then we've got big problems.

Remember Tesla

In all of the hoopla about Eclipse, people seem to forget that the last few years in New Mexico have seen quite a few government "investments" that didn't quite pan out. You remember Tesla don't you (subscription)?

Monday's announcement ended two weeks of speculation as various states, including California, Michigan and Arizona, scrambled to put together incentive packages for Tesla's first manufacturing plant.

The package was put together by nonprofit business recruiters Albuquerque Economic Development and the New Mexico Economic Development Partnership with help from various government agencies.

The state will make two $3.5 million capital outlay appropriations, one this year and one next, to Bernalillo County, which will use the money to build infrastructure such as roads and other necessities at Tesla's planned Cordero Mesa location. Albuquerque will contribute $600,000 for infrastructure improvements.

The plant will be built by Albuquerque-based Rio Real Estate Investment Opportunities and leased to Tesla, which plans to invest about $35 million in tooling and other equipment.

That was the "good news." The "bad news" followed shortly after:

Tesla Motors, once a poster child for a green manufacturing revolution in New Mexico, will not break ground in the state.

The San Carlos, Calif., electric car start-up, which had agreed to build a $35 million plant on Albuquerque's Westside to build the $60,000 four-door, five-passenger Model S sports sedan, announced Monday that the vehicle would be manufactured in California.

The news follows by a week the California Alternative Energy and Advanced Transportation Financing Authority's program to encourage the manufacture of zero-emission vehicles, which will provide Tesla with $100 million in tax-free financing for manufacturing equipment. Tesla also will be eligible for at least $1 million in Employment Training Panel Workforce Development Funds through the program.

Toni Balzano, spokeswoman for New Mexico Economic Development, said none of the once-decisive $7 million infrastructure incentives from the state of New Mexico -- $4.5 million of it approved in the last legislative session -- had been spent

Ah well, easy come, easy go... Although, in this case we might have gotten off cheaply. This Tesla investment could very well have turned out the same way as the state's Eclipse investment:

THE Tesla Roadster is an electric car that goes fast, looks sensational and excites envy. The seductive appearance, however, obscures some inconvenient truths: its all-electric technology remains woefully immature and don’t-even-ask expensive. If enough billionaires step forward to inject additional capital to keep the doors of its manufacturer, Tesla Motors, open, I’m happy for all parties.

If investors pass up the opportunity, however, why should taxpayers fork over the capital that Tesla needs? The Roadster is not much more than a functioning concept car that sells for $109,000. The company is requesting $400 million in low-interest federal loans as part of the $25 billion loan package for the auto industry passed by Congress last year.

The program is intended to encourage automakers to improve fuel efficiency, but should it be used for a purpose like this, as the 2008 Bailout of Very, Very High-Net-Worth Individuals Who Invested in Tesla Motors Act? Can you conceive any way that federal dollars could be put at greater risk — and for no equity in return, keep in mind — to benefit fewer people?

Tesla Motors, a privately held company based in San Carlos, Calif., has spent almost all of the $145 million in capital it has raised to date. It says it will soon receive another round of $40 million from its private investors to sustain operations.

It's that last line that really caught my attention: "It says it will soon receive another round of $40 million from its private investors to sustain operations. " Gee, that sounds awfully familiar. In the current economy any company looking for capital to "sustain operations" is in real trouble. The federal government should not invest $400 million of OUR MONEY in this company - nor for that matter should they bailout GM or any other car manufacturer.

But, most importantly, New Mexcio should take this as a wake up call. We need to stop this habit of providing special incentives and funding for individual companies and industries.