Note to the Democratic Party

With Heather Wilson's announcement yesterday that she will not run for Governor in 2010, there is only one thing that is crystal clear about the gubernatorial race... The Democratic Party of New Mexico has a messaging problem:

“Regardless of who emerges from the Republican primary, the lack of experience in their entire slate of Republican candidates should deeply concern New Mexicans,” Geise said. “Now is not the time for on-the-job training. We need a proven leader to help New Mexico families weather these tough times, and none of the Republicans running come close to meeting that challenge.”

What's the problem with this message you ask? Well, it tries to define Lt. Governor Diane Denish as a proven leader. Of course, the only proven elected leadership Lt. Governor Denish has is as the second highest ranking member of the scandal plagued Richardson Administration. Heck, if you factor in the Governor's out of state travel schedule, especially in the last four years, you might even argue that she has significant experience as acting Governor of a scandal plagued administration. Problem is you'd be arguing against Lt. Governor Denish herself:

Denish has said, in an attempt to distance herself from the scandal-plagued Richardson administration, “There is only one governor at a time.”

So, which is it? Is she a proven leader, or someone who spent the last seven years failing to prove leadership? Let's say we give the Lt. Governor the benefit of the doubt and choose the former over the latter. Well, then we have a leader who has proven that she can be at the helm of the most corrupt, financially bankrupt and policy flawed administration in the history of New Mexico.

Our roads are crumbling, our schools are failing and not a week passes without someone tied to the administration getting indicted or resigning in shame. If this is what counts as "proven leadership" in the Democratic Party, then I think you'll find most New Mexicans have just about had enough with the Denish/Richardson brand of proven leadership.

On the other hand, if we are to accept the Lt. Governor's claim that the terrible mismanagement of the public trust belongs to Governor Bill Richardson, then she has a failure to prove leadership problem on her hands. See, over the last seven years, Lt. Governor Denish sat side by side with Governor Richardson and told New Mexicans that all was well in the Land of Enchantment. Now, we all know that all was not well. In fact, as we have spiraled further and further into crisis, one thing has becoming increasingly clear there has been a decisive lack of leadership shown within the ranks of the Richardson Administration.

Richardson Threatens Public Safety

There's a time to play politics, and there's a time to solve problems. Apparently, someone forgot to clue Governor Richardson into this fact:

The state of New Mexico would have to shutter two prisons, give early releases to up to 660 prisoners and lay off and furlough Corrections Department employees if Gov. Bill Richardson signs budget cuts approved by the Legislature, his office said Wednesday.

Richardson's office raised that grim possibility as his staff analyzes the impact of $253 million in spending cuts legislators passed during a special session last week to deal with a revenue shortfall.

If the real measure of leadership is how someone performs in a time of crisis, Governor Richardson is failing miserably. The Governor has always been a great campaigner, there is no question about that; however, now that we actually need an executive leader, he is seriously falling down on the job.

He's still in political spin mode, which is nothing short of ridiculous considering that he can't run for re-election. In fact, his attempt at side-stepping responsibility by choosing to threaten the public with the unleashing of criminals rather than cut fat from a bloated bureaucracy is very likely going to hurt the campaign prospects of those who wait quietly in the wings.

The Governor has been shown to be quite enamored with all things Cuban, so I can't help but wonder if his strategy is not just a bit Castro inspired:

It is true that Castro opened his jails during the 1980 exodus, flooding Miami’s streets with criminals, drug addicts and mentally unhinged people, which contributed to Miami’s skyrocketing crime rate and helped it become murder capital of the world by 1981.

Fidel Castro did it to take make a point and causes chaos for those who didn't agree with his style of governing, and it appears that Governor Richardson is doing the exact same. Worse, it looks like there isn't a single person in his administration with the backbone to step up and say, "Hey Governor, threatening to unleash criminals on the taxpaying public is not a viable option."

It is true that one Richardson Administration politician has publicly noted that "the state can only have one chief executive at a time." But, it is equally true, that a public official's first responsibility is to the public. Of course, this is a fact that seems to be long forgotten by the ruling political elite in New Mexico. They work for us, we do not work for them. We put them where they are, and we can take that away. And, if they continue to choose to threaten instead of lead, I'm sure come Election Day, we will do precisely that.

Hidden Messages

If you haven't heard about the hidden note to legislators from California Governor Schwarzeneggar, you'll definitely want to check out Steve Terrell's recent post. Coincidence? Yeah, right.

Putting Healthcare Before Jobs

Congress and President Obama have made it clear that their number one priority right now is pushing through a healthcare "reform" bill. If you ask me, this is a political mistake that is going to come back and bite them. Estimates of the numbers of Americans without health insurance range from 10% -20% depending on the point that is trying to be made and by whom.

Not having health insurance only really becomes a problem if you are ill, and severely or chronically ill at that. And, even then, if you have access to healthcare, the lack of insurance is irrelevant. So, we are talking about a relatively small percentage of the population at any given time.

Research released this week in the American Journal of Public Health estimates that 45,000 deaths per year in the United States are associated with the lack of health insurance. If a person is uninsured, "it means you're at mortal risk," said one of the authors, Dr. David Himmelstein, an associate professor of medicine at Harvard Medical School.

Mind you, that's 45,000 deaths out of a U.S. population of some 300 million. In fact, this number is almost equivalent to the number of people that die every year in car accidents.

Highway fatalities account for more than 94% of all transportation deaths. There were an estimated 6,289,000 car accidents in the US in 1999. There were about 3.4 million injuries and 41,611 people killed in auto accidents in 1999. The total number of people killed in highway crashes in 2001 was 42,116, compared to 41,945 in 2000.

Yet, we don't feel the latter is a crisis that deserves the full attention of Congress and the President. The healthcare insurance debate is a political sideshow at best. Yes, it is terrible for those who are struck with a chronic or fatal illness who do not have insurance, but it is not the the number one crisis facing America. Nor, for that matter is climate change, but I digress.

Let's look at the reality. People with cushy, protected government jobs, or the those at the highest and lowest levels of earnings scale are not impacted by a recession, but million of middle class Americans, who incidentally vote, are impacted. After all, they are the growing number of unemployed unable to find work.

Sure, the political elite and Wall-Street-Give-Me-A-Bailout-Followed-By-Large-Bonus types like to talk about how the recession has ended, and in their insulated bubble it may have. But, for millions upon millions of Americans, not only has the recession not ended, it is still expected to worsen:

National unemployment rates remain extraordinarily high, having reached almost 10 percent. According to the Congressional Budget Office, unemployment will climb to 10.2 percent in 2010 before falling to around 9.1 percent the following year.

Within particular states, the situation is dire. In Massachusetts, unemployment rates have reached a level not seen since 1976. Michigan's unemployment rate is at a little over 15 percent. State budgets, according to a report by the Rockefeller Institute of Government, are still devastated by rapidly declining tax revenue. According to its study, collections by states fell by 16.6 percent from April to June.

Keep in mind that every time you read about another couple of hundred thousand jobless claims, those losses very often impact, not only the individual, but the other members of their households. Consider those millions compared to the 45,000 who die because they don't have health insurance. Now consider that the proposals in front of Congress are going to force 100% healthcare insurance coverage through punitive actions on business:

Businesses would not be required to provide health insurance under legislation being readied for Senate debate, but large firms would owe significant penalties if any worker needed government subsidies to buy coverage on their own, according to Democratic officials familiar with talks on the bill.

For firms with more than 50 employees, the fee could be as high as $750 multiplied by the total size of the work force if only a few workers needed federal aid, these officials said. That is a more stringent penalty than in a bill that recently cleared the Senate Finance Committee, which said companies should face penalties on a per-employee basis.

In other words, Congress is going to make it even more expensive to do business in the U.S. We'll see even more jobs evaporate in order to solve a problem impacting the lives of 45,000 of Americans. Not smart.

The Governor of La La Land

That's the only way to look at it. Governor Richardson has officially relocated to La La Land:

1. Los Angeles, California (often abbreviated L.A.). This expression pokes fun at the alleged eccentricities of the city's inhabitants. For example, What do you expect? Frederick has lived in la-la land for ten years and it has rubbed off on him. [Slang; c. 1980]
   
   
2. A state of being out of touch with reality, as in I don't know what's going on with Amy--she seems to be in la-la land. [Slang; c. 1980] Also see cloud-cuckoo land; never-never land.
   

No, I don' mean that he has moved to Los Angeles - although, one could only hope. But, like Frederick in the example above, it appears that Governor Richardson's contact with Hollywood's elite has altered his perception of reality:

New Mexico lawmakers on Friday wrapped up their special legislative session, sending Gov. Bill Richardson a package of measures to repair a $650 million budget shortfall this year.

“It isn’t pretty. It doesn’t solve the problem; we know that. But it’s a step forward,” Majority Leader Michael Sanchez, D-Belen, said before the Legislature adjourned.

The package includes spending cuts of about $253 million this year in public schools, colleges and other government programs.

Richardson criticized what he said were “excessive” cuts to state agencies, and warned they could result in layoffs and reduced services.

That is the only possible explanation for the Governor's reaction to the recently ended special session. See, when you have a $650 million deficit and growing, and you only cut $526 million, that leaves a gaping hole of a whopping $124 million. No one in their right mind would call those cuts "excessive" as they clearly fall far short of the mark of what's needed.

Then again, I guess if you're a Governor living in "cloud-cuckoo land" you're not really in your right mind.

Seems More Than a Little Disingenuous

I keep hearing a Ford ad on the radio being run by a local dealer, which proudly lays claim to the "fact" that Ford didn't take any government money (i.e. taxpayer money). While it is true that Ford didn't seek TARP bailout funds, it seems more than a little disingenuous to run ads that claim Ford didn't take government money:

The National Highway Traffic Safety Administration has processed 80,500 transactions so far, and the early winner of Cash For Clunkers appears to be the Ford Focus. The Detroit News is reporting that the Focus is the number one vehicle purchased under the government program, showing us why Ford's C-Segment vehicle gained 43.6% in July. Ford also saw an amazing 97% increase in Escape sales in July, a tally that was likely improved with the help of Cash For Clunkers.

Sorry Ford, this doesn't pass the smell test. Last I checked, the $3 Billion spent on that Cash for Clunkers program does count as government money (from taxpayer pockets). Of course, it's not the only government money Ford is taking.

Now, I don't blame Ford for taking this money. If the government is going to be spending like no tomorrow, your foolish if you let your competitors get a competitive advantage. But, please don't run self-congratulatory ads pretending you're not taking taxpayer money. It's kind of insulting.

Education Cuts Put in Perspective

The education establishment is up in arms and willing to go to any length to fight education cuts during the special session. Admittedly, part of the problem is the way that cuts are proposed. Rather than take responsibility for past irresponsible actions, the Richardson/Denish Administration like to propose "across the board" cuts:

Richardson has proposed a 3.5 percent cut to state agencies and a 1.5 percent cut to public schools, which would amount to about a $40 million reduction in the state budget for kindergarten through 12th grade.

Taking this approach to reigning in a budget gone wild is irresponsible at best. Yet, a recent special audit report released by State Auditor Hector Balderas show just how much waste is in education:

The money involved in the transfer to the discretionary account came from funds meant for technology and transportation, Balderas said. About $3,500 of it came from federal Head Start money, in violation of the federal rules, the audit states.

Among the items allegedly purchased by the northern New Mexico school district through the discretionary account were:

• More than $2,800 in lobbying expenses.
• $200 spent on 20 bags of beef jerky for lobbying at the Legislature last March.
• $742 spent on food at the Bull Ring in Santa Fe for a legislative meeting last February.
• More than $900 spent on flowers for funerals and other events.
• Jackets for all district staff for staff appreciation in January 2007 costing $3,299. More jackets for staff and also for legislators in March 2007, costing $290.
• Gift certificates from Wal-Mart for three retiring employees in May 2006 costing a total of $150.
• A $302 gift from Zales Outlet for the district's retiring superintendent in August 2006.
• Another $1,200 for items for conference rooms from a vendor called "Nambe" in August 2008.
• For district staff: more than $1,300 for hams in December 2007, more than $1,600 for turkeys in February 2009 and more than $900 for denim shirts in April 2009.
• And more than $2,400 spent on jackets for district leadership in March 2009.

The audit said that depositing money into the discretionary account resulted in less money available for school district operations. Auditors looked into transactions from the discretionary account from fiscal years 2006 to present.

Consider that's just one finding, and it accounts for almost 1.5% of the district's annual budget. Let's roll up our sleeves and get the job done.

Now That's Interesting

It's like the legislature just woke from a seven year slumber, and decided to, well, decided to start acting like a legislature. For seven years, those controlling the legislature have rubber stamped every ridiculously large, bank-breaking budget proposed by the Richardson/Denish Administration.

Now, the piper wants to be paid, and it is becoming increasingly clear that the Richardson/Denish Administration have created, long-term structural problems for New Mexico. But hey, don't take my word for it. Instead, read what Lt. Governor Diane Denish has to say about the failed policies of her administration:

We know temporary “band aids” applied to remedy our budget shortfalls are not the answer to long-term, structural problems with the state budget. We must craft solutions that work for future generations of New Mexicans.

In other words, what the Lt. Governor is trying to sell us is, "I got us into this mess, so I can get us out of this mess." Of course, we know that's not the way it works in the real world. In the real world, when people make bad decision after bad decision that results in the virtual collapse of their organization, they can expect to be fired.

Now in case you're wondering what type of bad decisions have been made by Rchardson/Denish Administration, you have to look no further than some of the proposals that are being put forth by their Democratic peers in the legislature to fix the "long-term, structural problems". For example, consider this press release received from Representative Cote:

Rep. Cote introduced HB24 on the floor of the House today. The proposed bill calls for the Governor to reduce the number of exempt employees in cabinet departments and state agencies with salaries over $50,000. According to the bill, cutting at least 180 of these positions would save $8.1 million for the rest of this year and $19 million in the next fiscal year.

“Under the current fiscal conditions, all state expenditures must be analyzed and none excluded. I’ve noticed significant growth in the number of exempt positions in the last several years and the incumbents of which could be placed into permanent classified positions. My bill is an attempt to reduce the size of the state’s payroll. I feel the state government has grown too large for the revenue available in the state of New Mexico,” Rep. Cote (D-Dona Ana, Otero-53) stated.

During the last regular session the Governor said he would trim salaries of 470 exempt employees but, in the past year alone, the number of Governor exempt employees has risen by 27 positions from 789 to 816, while the number of state classified employees has stayed the same. Over the past seven years the Governor’s exempt positions has risen by 281 positions.

That's right, Lt. Governor Denish has stood silently by as her partner in crime, Governor Bill Richardson, has created and handed out new government jobs as payback for political favors. This practice, among many others has led to the long term, structural problems with our state budget, that now threatens the financial viability of education, social and infrastructure programs.

Of course, Lt. Governor Denish would rather we not point fingers and blame (read: personal animosity):

Legislators should act quickly, she said–putting “personal animosity aside”–because the state doesn’t have “time or money to waste”

Of course, she's right. The state doesn't have time or money to waste... Diane Denish and Bill Richardson have spent seven years wasting our money and our time, and the proverbial cupboard is now bare.

Can't Miss the Parade

Our elected officials are struggling with how to fix an astronomical and ever-growing budget deficit without cutting expenditures or raising revenue. I'd really like to see the former versus the latter occur, and even those who want to empty our wallets, are struggling with the lack of financial restraint being shown by state government agencies in this time of economic crisis:

"Knowing that, the administration has not put the brakes on spending," said Ortiz y Pino, who is running for lieutenant governor. "There is no evidence in my mind that this administration in any way slowed down the spending in state government. Now, I've worked in administrations in the past, and as soon as there was any question that we were going to be in budget trouble, the word was out. Stop hiring, don't fill vacancies, no out-of-state travel, no contracts, no printing. Nothing, nothing, nothing, just make sure we get through this OK. Has this administration done anything remotely like that?

In related news...

New Mexico plans to sponsor a float in the 2010 Tournament of Roses Parade in Pasadena, Calif.

New Mexico Tourism Secretary Michael Cerletti said the response from the southern Californian travel market to New Mexican floats in the 2006, 2008 and 2009 parades was tremendous, and a float is a good way to reach potential visitors.

Phew! It's a good thing we have our spending priorities straight.

Those Who Get it and Those Who Don't

Budget Cuts Shouldn't Hurt Kids

Governor Richardson's mantra going into the Special Session this weekend is a simple one: "Budget cuts shouldn't hurt kids." It's one that I wouldn't be surprised to learn had been voter tested and approved:

But most interesting was $38,353 paid for "research/polling" to a company called Fairbank, Maslin, Maullin & Associates in Santa Monica, Calif. Nearly all the money was paid in June, a much smaller chunk paid in September.

It's a simple message, and a nice diversion tactic. Governor Richardson gets to avoid taking ownership for spending New Mexico into a crisis. He gets to pretend to be the great savior of our children, while trying to turn the legislature into the big bad wolf:

Gov. Bill Richardson late Tuesday rejected legislative proposals to plug a state budget gap that's now expected to top $650 million, saying at least two of them would cut too much money for public schools.

Richardson called for lawmakers to try again before a special legislative session on the budget starts Saturday.

"Governor Richardson has studied the legislative proposals and finds the cuts to education unacceptable because of the severe impact to teachers and kids," Richardson spokesman Gilbert Gallegos said. "The governor wants one proposal from the Legislature, not three, that makes fiscally responsible cuts without hurting schools."

But, here's the thing. The Richardson Administration, and to a great extent the rubber-stamping majority in the legislature have done more to damage education in New Mexico over the last seven years, then anything some cost-cutting could ever do. They've herald one supposed "great" education reform after another without ever actually doing anything to improve education for our children. Worse yet, they've refused to ever take ownership of their repeated failures:

A new batch of testing results shows New Mexico students' math scores are among the nation's worst, with little change from previous years.

The data, released by the National Assessment of Educational Progress and often called the Nation's Report Card, shows New Mexico's fourth-graders with an average math score of 230 out of 500. The national average was 239.

The New Mexico average score for eighth-graders was 270, compared to a national average of 282.

The achievement gap between New Mexico's Anglo students and students of other ethnicities remained wide, without significant change from 2007.

Secretary of Education Veronica Garcia said the overall numbers may not provide a fair comparison because of the small sample of students tested. About 11 percent of New Mexico's fourth-graders and 10 percent of eighth-graders took the test.

Garcia also said students and teachers in New Mexico often do not take the test very seriously because scores are not broken down by district or school. She said other states use incentives to raise awareness about the test's importance.

Oh yeah, that's the problem with the test scores. We don't have a big enough media campaign to let our kids know that tests are important. They actually know all of the information, there just not taking the test seriously. GIVE ME A BREAK! Here's a novel idea... How about taking ownership for the education failures?

Look, year after year, we've thrown ever-increasing pots of money at education with ever-worsening results. How about we try something different? Go ahead and cut education spending. Let's stop pretending the children are going to get hurt. Based on the test results released year after year, it can't get much worse for them.

And, as long as we're making cuts, how about getting rid of the hundreds of governor created and appointed positions drawing down comfortable salaries for absolutely no work. In fact, let's fire everyone who can't seem to get their department to actually provide the services they are supposed to be providing.

Heck, why stop there? Let's just fire everyone who refuses to take responsibilities for seven years of failures and fiscal mismanagement. Start with Governor Richardson and don't stop until you find someone who says, "I've totally and completely messed up, and this is how I'm going to fix it." My guess is that before you find that person, the budget will actually be balanced.

Political Promises Never Last

As the push for national healthcare continues, it is good to look at how public healthcare option promises have played out in other states:

So we are sticking with our plan and paying the tax. But what bothers me most is that a similar health-care mandate is being proposed in Washington, and some of the same promises that were made here are being made again—such as that the mandate will never hit middle-class folks with a new tax. When asked about the mandate, Maine Republican Sen. Olympia Snowe said recently, according to the New York Times, "It surprises me that we would have these high-level penalties on average Americans."

Well, I don't find it surprising. The mandate in Massachusetts was sold as something that wouldn't penalize people like my husband and me. But those political promises were only good for as long as it took to get the mandate enacted into law.

Isn't that always the case?

Can't Help But Wonder

I can't help but wonder what happens to one of my favorite past times if we get a government run healthcare system in the U.S. In July 2007, I bought a four door Jeep Wrangler. I can't even tell you how therapeutic I find it to drive with the top off and the windows open under the clear blue skies of the Land of Enchantment.

I've put nearly 60,000 miles in the first two years of ownership criss-crossing the state. Sometimes I did it for business, sometimes for fun. Actually, no matter what the purpose, I always had fun. Especially those trips that took me on dirt roads with nothing but the cows and deer for company.

The first month or two I had the vehicle the doors were off as well, but my always sensible wife ruled that the kids were forbidden to drive with me if there were no doors on the vehicle. So, that didn't last too long. [Note to lawmakers enacting revenue generating schemes: No law had to be passed to protect our children.]

Okay, you're wondering what does driving with a topless Jeep have to do with government run healthcare? That's a fair enough question. Consider this new medical study released on the potential damage to hearing provided by convertibles [hat tip: NewMexiKen]:

Convertible lovers who take to the open road with the top down may be risking hearing damage, according to a new study out of the U.K.

"If you are exposed for long periods above 85 decibels [of sound], you have the potential for hearing loss," says Philip Michael, MD, an ear-nose-throat surgeon at Worcestershire Royal Hospital in Worcestershire, U.K., and the study's lead author. In his study, he found that the noise level with the top down was higher than 85 decibels. "The maximum noise was at 70 miles per hour and that was 89 decibels. It has the potential for causing long-term hearing loss.''

To put those decibel levels in context, a normal conversation is about 60 decibels; a rock concert is about 115 decibels.

Well, once the government is running the healthcare system is it too far fetched to consider that they might outlaw the use of convertibles, or rock concerts for that matter, to cut costs related to hearing loss? I don't think so. Remember our own Senator Bingaman has already made the point:

If the government is going to be involved in the far end… I don’t see why it’s inappropriate for the government to encourage healthy behavior up front.

Time and time again, we allow the government to extend its reach into our lives without giving much thought to the precedent that sets for further intrusions. If you enjoy cranking up the stereo while driving your convertible, and eating an occasional fast food burger, fries and a large chocolate shake, you may want to give a second thought to the implications of a government run healthcare system.

Get Our Deposit Back

On October 17, the legislature will go into Special Session to deal with the escalating budget crisis that will likely get worse before it gets better. There are legislators that would like to cut expenses. There are legislators that would like to increase taxes. And, there is an executive who is offended that some legislators refuse to live in a fantasy world:

Gov. Bill Richardson might have a new nickname for two of his frequent adversaries in the New Mexico Legislature.

Speaking to reporters Monday after a news conference in Santa Fe, Richardson voiced frustration with Senate President Pro Tem Tim Jennings, D-Roswell, and Senate Finance Committee Chairman John Arthur Smith, D-Deming.

"I don't want this gloom and doom that is coming from certain quarters," Richardson said.

New Mexicans would be wise to listen to the prognostications of these two gentleman. They know of what they speak. One idea that might be worth exploring during this session comes from a 73 year old who bought into the space dream:

When a private spaceship soared over California to claim a $10 million prize, daredevil venture capitalist Alan Walton was 68 and thought he'd soon be on a rocket ride of his own.

Walton plunked down $200,000 to be among the first space tourists to make a suborbital thrill-ride high above the Earth aboard a Virgin Galactic spaceship.

Now he intends to ask for his deposit back if there's no fixed launch date by his 74th birthday next April.

New Mexicans have put more than a $100 million into Governor Richardson's space odyssey, and now that its time to pay our other bills. Maybe it's about time to ask for our deposit back. After all, it's not like this has come even close to delivering what was promised.

When Virgin officials and the state of New Mexico came together to announce a partnership to turn the commercial space industry into a reality, they estimated commercial flights beginning in 2007 in California and moving to Spaceport America as soon as the New Mexico facility was ready in 2008.

Reminder folks: we're two months away from 2010! Unlike federally backed NASA, the state of New Mexico can't actually print its own money to explore the final frontier. We have to live in reality.

Besides, think about it. Do you really want the state government of New Mexico to be directly involved in something as complicated as space launches. Remember, this is the entity that can't figure out how to do something as simple as answering the phone:

New Mexico has extended call-center hours, upgraded the phone system and added 15 workers. Even so, "We still are receiving reports of people's inability to get through," said Carrie Moritomo, a spokeswoman for the state Department of Workforce Solutions.

Of course, they could hire more people, but part of that budget is probably tied up in supporting the Space Authority. So before we start raising taxes, how about we revisit every last one of Governor Richardson's "great" initiatives of the last seven years, and start asking for our deposits back. And, while we're at it. Maybe we can eliminate some of those high-paying, low-performing jobs the Governor was so fond of creating:

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.

Hey, it's just a thought.

Congratulations Albuquerque You Made a Good Choice!

RJ Berry's election win last night is a win for Albuquerque and New Mexico. Mayor-elect Berry is exactly the type of new leader we need in New Mexico. He is a 3H guy - honest, humble, hard-working - who take his responsibilities very seriously. Congratulations to RJ and his family!

I think the GOP needs to be careful about misinterpreting this win as a vindication. As the Democrats are quick to point out, the majority of votes went to the Democratic candidates, not the Republican candidate. However, more important is this fact noted by Eye on Albuquerque:

But what's also clear is that a solid 65% of voters wanted someone other than Martin Chavez to be mayor.

There is no mistaking it. There is a strong anti-incumbent sentiment out there among the voters. As Don Harris' City Council race demonstrated, that doesn't mean that anyone can win a seat, but it does mean that voters will choose a truly qualified leader over the entrenched incumbent. We saw it last night in the mayoral race, and we also saw it in Dan Lewis' win over Michael Cadigan. Dan was another 3H type of candidate.

So, where does that leave us. Well, Lt. Governor Diane Denish needs to take notice. Try as she may, its a little too late to disengage herself from the scandal fraught Richardson administration. As the economy crisis continues to worsen, people will rightfully be blaming the incumbents and those who enabled them, and looking for viable alternatives.

Making the Rich Evil and Taxing the Poor

Talk about killing two birds with one stone, that's exactly what State Representative Brian Egolf attempts to do in a guest commentary over at Heath Haussamen's blog:

Prepare to be shocked: Did you know that in New Mexico a family of four with taxable income of just $16,001 pays the same personal income tax rate as a family making $100,000, $250,000 or even $1 million?

Under our state’s tax structure, the highest tax rate kicks in at $16,001. This means that a family of four living at or near the federal poverty level pays income tax at the highest New Mexico rate. This must change, for reasons of both fairness and fiscal soundness.

In New Mexico, our tax system is extremely regressive, which means that it requires low-income earners to pay a higher percentage of their disposable income than high-income earners. The effect of a regressive system is that low-income earners feel the pinch of a tax bill far more than high-income earners, and low-income earners have far less money available for savings as a percentage of their income.

The two birds in this case are the "evil rich people" and making the case for a tax increase. Of course, there are more than a couple of problems with Representative Egolf's positions. First, let's look at the basic premise that the "rich" don't pay enough of their income in taxes. Representative Egolf is right that anyone making over $16,001 is in the same tax bracket.

How New Mexico State income tax rates are structured

The tax table below will show in detail the New Mexico state income tax rates by income tax bracket(s). There are 4 income tax brackets for New Mexico.

If your income range is between $0 and $5,500, your tax rate on every dollar of income earned is 1.7%. If your income range is between $5,501 and $11,000, your tax rate on every dollar of income earned is 3.2%. If your income range is between $11,001 and $16,000, your tax rate on every dollar of income earned is 4.7%. If your income range is $16,001 and over, your tax rate on every dollar of income earned is 4.9%.

Income tax brackets data last updated March 3rd, 2009.

That sounds terrible, right. Wrong. Let's look at the hard numbers. What does this really mean? Well, let's say you define someone as being a member of "evil rich" if they make over $250,000 per year. Under the current state tax system, a person would be paying $12,250 per year in state income taxes if they are at the bottom of the rich class. Whereas, a family of four making $16,001 would be paying $784.05. In other words, the rich person would be paying $11,465.95 more in taxes. How is that not enough? The disposable income part of the argument is moot. A family of four living on $16K has no disposable income.

Ok, back to the rich person. Remember that this rich person is also likely paying property tax; whereas, it is unlikely that the family of four living on $16,001 is paying property tax. The rich person is also likely purchasing more, and therefore paying more dollars in gross receipts tax than their lower income counterparts. The rich are also paying higher federal income taxes, which in turn comes back to the poor in New Mexico since the state historically receives about two dollars in federal spending for every dollar paid in taxes.

The low income family in this example doesn't pay federal tax, they most likely qualify for the Earned Income Tax Credit (EITC) and actually get over $5,000 paid to them (money that comes from those rich folks). I could go on, but I think you get the idea. The bottom line, when the rich are done paying all of their taxes, they're not really all that rich after all. Of course, they will have more money than the poor, but the alternative is a communist society.

Of course, that's not the only fallacy in Representative Egolf's argument. He makes the case that the $450 million budget shortfall is because the top income tax rate was cut. This is ridiculous. The year after the tax cut went into effect, the total dollars brought into the state went up, not down. The problem is that the state kept increasing spending like there was no tomorrow.

Well, tomorrow is here. Spending needs to be cut. Taxes do not need to be raised.

Not Enough Screaming Insults

Must have been an unbelievably slow news day. The front page of today's online Albuquerque Journal has an "article" which is basically a free ad for Lt. Governor Diane Denish's request for contributions:

Lt. Gov. Diane Denish is asking New Mexicans to restore civility to state politics — by contributing money to her gubernatorial campaign.

In an e-mail sent out to supporters Wednesday, Denish, the sole Democrat to enter the 2010 race thus far, said many New Mexicans have told her they're tired of the name-calling and negativity of current politics.

"Stand with me against the screaming and the insults," said Denish, who added that a contribution of $25, $50 or $100 would help her "put her foot down and say 'enough is enough!'"

Sorry folks this isn't news. There are lots of candidates out there asking for money, and unless the Journal plans on giving each and every one of them equal time, I think they ought to revisit their editorial policy.

As to the content of the Journal's in-kind contribution to Lt. Governor Diane Denish's campaign efforts, I can't help but wonder what exactly the Lt. Governor wants everyone to stop screaming about? Does she want New Mexicans to stop screaming about the fact that this administration's tenure has been marked by more criminal indictments and pay to play scandals than any other administration in recent history? Maybe she wants New Mexicans to stop screaming about a public education system that is failing more and more children every year?

As a former Chairman of the Democratic Party, does the Lt Governor find it insulting that a member of her own party would point out that OVER A BILLION DOLLARS is spent without required audits. Or, could it be that Lt. Governor Denish finds it insulting that she is being held accountable for failing to blow the whistle as tens of millions of dollars in taxpayers funds disappeared because of highly questionable investment practices.

Sorry, but if you ask me, there's not near enough screaming going on in the Land of Enchantment. In fact, I hope the "screaming" grows louder, and I'm really not going to lose any sleep if the crooks, or their enablers, are insulted.

About Time Someone Started Paying Attention

The budget situation in New Mexico gets bleaker by the minute:

Legislators expect the current revenue shortfall to grow - perhaps to $550 million or more - because of continued weakening of tax collections during the recession.

To prepare for that possibility, lawmakers are pushing for larger spending cuts than Richardson has proposed in his plan to balance the budget.

"We're in deep, deep, deep trouble, and there absolutely is not going to be an easy answer," Sen. John Arthur Smith, a Deming Democrat and vice chairman of the Legislative Finance Committee, told his colleagues Monday as they reviewed options for balancing the budget.

Lawmakers see spending cuts as a permanent fix to the state's budget woes. Reducing the budgets of agencies and programs realigns state expenditures more closely with projected revenues in coming years.

If you're looking for someone to blame for our economic woes, look no further than the spending spree the Governor and his administration took us on during his years at the helm. A $100 million here, $400 million there, and next thing you know we've got big problems. Why this is coming as a surprise to anyone is beyond me.

Now consider that in addition to spending like there's no tomorrow, Governor Richardson and his appointees have thrown caution to the wind and disregarded any and all safeguards intended to protect taxpayers from fraud and abuse:

Today State Auditor Hector Balderas released a report saying nearly 90 state agencies have failed to submit compliance audits as required by law. The total amount of dollars that hasn't been audited according to a list I received is $1,177,233,118.00.

That's right, over $1 Billion (that's Billion with a "B") spent without an audit. In light of the number of criminal indictments that have occurred in recent years when audits have been conducted, this is a very unsettling fact.

And, you wonder how we got into this mess?