Richardson Pushes Payday Loans on New Mexico

Governor Richardson is still committed to having a special legislative session start this Friday. Why? Well, originally it was to try and push a budget busting healthcare plan that had rightly died during the last legislative session.

"We can invest in health coverage in a fiscally responsible way," Richardson said in a statement. "While cynics will no doubt complain about using revenue from oil and gas, I am confident — as I have been for the past six years — that New Mexico's economy is performing well and will allow us to expand health care coverage to all New Mexicans."

Hmm, yeah...Let's see that quote comes from a post I put up just 30 days ago. And, in 30 days that projected windfall has shrunk by over 40% (subscription), but Governor Richardson is never one to let reality get in the way of big spending:

"The bottom line is the state still expects $225 million in extra money — money that should go back to New Mexico families who are struggling to make ends meet," Richardson said in a statement. "I am confident we can put money in people's pockets in a fiscally responsible way."

Last month, revenue collections were projected to be almost $400 million higher than anticipated in the current budget year. That was mostly because of money New Mexico collects from taxes and royalties on the production of oil and natural gas. But prices have dropped sharply since last month's revenue estimates, which are developed by administration and legislative economists.

Governor, it would appear that those who are complaining about using oil and gas revenue are not so much cynical as they are realistic. The bottom line here is that Governor Richardson's approach to spending is akin to going to a payday lender. The Governor is taking money he doesn't have (i.e. projected) and spending it without concerning himself with consequences.

If he wants to put more money back in the pockets of struggling New Mexicans, he should cut the state spending budget that he has grown from $3.9 billion to over $6 billion and allow New Mexicans to pay less in taxes. Of course, that would be the fiscally sound way to give us back our money. But, no quite in keeping with the Governor's tradional mode of operation.

Instead, he is proposing to give us back money that he hasn't yet collected. In other words, he is taking out a payday loan to help those struggling New Mexicans. The exact strategy that puts many New Mexicans in a poor fiscal position in the first place. We all know that most of the people borrowing from payday lenders end up in a dire financial situation.

Mark my words, the end result of the Governor's payday loan approach to spending based on a volatile projected revenue source will be more taxes for every New Mexicans - including those already struggling under a heavy tax burden.

Streetcar Back on the Table

Not that long ago, we were all able to breath a collective sigh of relief as the Mayor's Streetcar had died a timely death. But, it looks like the Streetcar is back on the table (subscription):

Albuquerque should focus on building a modern streetcar system along Central Avenue between Downtown and San Mateo if it decides to proceed with the project, according to a consultant’s report.

That stretch of the city is the best bet for a successful start to the system, the presentation from Leland Consulting Group said. Demographics and market forces in the area would support the project, the group said.

The presentation was provided Tuesday afternoon to a City Hall task force studying transportation options in Albuquerque. Here’s a look at what was said:

* The streetcar system could draw about 5,000 riders a day on the Downtown-to-San Mateo segment.

* Each streetcar can carry up to 100 people, though the cars can be linked together to serve up to 200 people.

* The capital cost for launching the system is likely to reach about $106 million on the recommended segment, or about $28 million a mile, the presentation said. Annual operating costs would run about $3.9 million.

* Revenue from extending the life of a quarter-cent sales tax, Tax Increment Development Districts, naming rights, advertising and other sources could fund the project. Only a fairly small portion of the revenue generated by the sales tax would be needed for the streetcar system in some scenarios.

Now, there are a couple of points that really ought to jump out at you. First and most obvious is that the only way this can be funded is by extending a tax on everyone that was supposed to expire.

The next eyebrow raising fact requires a little basic math. Keep in mind that the Albuquerque Metro Area population is up to around 800,000, and is expected to reach a million before long. Yet, this Streetcar is only going to be used by about 5,000 people. Put another way... 99.5% of the people are expected to pay hundreds of millions of dollars (these things never come in on budget - think train), so 0.5% of the population can ride a streetcar instead of taking the bus.

Sure, the consultant said 5,000 people per day, but overall, we're talking about the same people every day. Now, I've been to Portland and used their streetcar system. So, it can be honestly argued it will be used by tourists and provide a tremendous economic benefit to those businesses on the route. Great. If they want the benefit, then they should be willing to pay for it, and let the rest of us off the hook.

State Employees May Take Four Day Work Week

Our state's spending budget has nearly doubled since Governor Richardson took office. Despite this mind blowing growth, state government is apparently feeling the pinch at the pump.

Gov. Bill Richardson has signed an executive order creating a telework and alternative work schedule program for state workers.

It creates a framework for the creation of things like four-day work weeks to cut down on commuting and allowing workers to telecommute. Richardson said it would help reduce fuel use and taxpayer costs.

Um, after nearly doubling the budget, he is now going to pretend to care about saving taxpayer's money. Right. My guess is that despite the bloated state budget, I'm going to try and walk into a state agency office and instead of service discover longer lines, or worse that it is closed, as a result of an executive order that allowed a flexible work week.

Ross Perot's Charts

I have to admit that I'm not one of these guys who has always been hooked on politics. In fact, my ten year old son probably - no, make that definitely - has more political awareness than I had until the end of my college years. It just wasn't really my thing in my earlier years.

What I do remember is that the first Presidential election in which I took a keen interest was the 1992 election. In fact, I was inspired to register to vote by that little man from Texas with the big ears, Ross Perot. But, when he withdrew and then re-entered, I lost interest.

The point of this trip down memory lane is that Ross Perot is back on the scene. This time Perot has some new charts, and the graphs do not paint a pretty picture. One chart I find particularly troubling is the one that shows U.S. Government Tax Collections from 1968 through 2007:


A quick glance confirms that our government does not have a revenue problem, it has a spending problem. So, someone please explain to me why, with all of this growth in revenue, the Democratic Congress and the Democratic Presidential candidate would like to see a sunset of the Bush Tax Cuts?

Sticking Others with the Bill

A very interesting observation regarding the relationship between personal financial management and government fiscal policy.

Sign the Fair Tax Petition

As April 15th arrives, you can't help but think, "Anything has to be better than our current tax system." If you haven't done so already, please take a moment and sign the Fair Tax petition.

The Railroad to Taxation

The proverbial other shoe is about to drop on the railroad:

The six-member statewide commission sent a letter to the governor this week encouraging establishment of the new transit district, which would let participating counties first elect to be involved, then ask voters to approve up to a 1/2 percent gross-receipts tax to pay for services.

And, "the tax-cutting" Governor has issued a statement supporting it. As the Governor's universal health care proposal continues to be pushed, New Mexicans would be wise to remember that so far every "big" initiative this Governor has put forth has been followed shortly after with a cry for a need for new taxes. We're seeing it with railroad. We saw it with Spaceport America, and we'll see it with the health care proposal.

My biggest fear is that in the very near future, we will see another attempt to raid the permanent fund to pay for all of these unrealistic and poorly planned new entitlement programs.

Governor Richardson's 2008 State of the State

Today, Governor Bill Richardson gave his 2008 State of the State (pdf), and true to form, he laid out an agenda that is much too expansive to be dealt with in the time allotted. Not too mention, that it's not appropriate for a session which is supposed to be focused on budget issues. What makes this worse than usual is that he just got back in to town after almost a one-year hiatus.

They say when you run in a Democratic Primary, you tend to run to the left because the base is far to the left. Well, based on the Governor's State of the State address, someone forgot to tell him to stop running to the left:

It begins with insurance reform.

Today there is a unified voice from business, labor and patients alike -- demanding solutions to the ever-rising cost of care and insurance premiums.

My plan requires that at least 85-percent of premiums must be spent directly on care.

Not on overhead.

Not on bureaucracy.

Not on profits.

Our public programs already require this--private insurers must do the same.

First off, let's deal with the obvious. I'm a member of numerous business organizations, and I can tell you that when it comes to the health care proposal the Governor has put forth, there is NO unified voice from business community.

And, what's this nonsense about limiting profitability of insurance providers? Someone please remind Governor Richardson that it's still legal in America to make a profit. In fact, it - the free enterprise system - is one of the cornerstones of our democracy.

Then, the Governor goes on to say, "Everyone must pay their fair share." Gee, when was the last time you looked at your tax bill and thought, I'm not paying my fair share. The state budget has grown astronomically since the administration took over, and the Governor has the nerve to say "everyone must pay their fair share." What's next? "...from each according to his ability, to each according to his needs."

After his Socialist Health Care agenda, the Governor proposes:

A new mandate calling on utilities to invest in energy efficiency programs. Programs that will be cheaper and cleaner than building new power plants.

Now, he's telling the utilities how to run their businesses. Who do you think is going to pay in the long run for this mandate? That's right, you and me. We're going to end up paying higher rates. Can you say, "Hidden taxes."

I could go on, but I'm just getting frustrated. Maybe I ought to invest in the campaign to draft Richardson as Vice-President, it's got to be cheaper for me than keeping him in the state.

Why Do I Feel Like I've Been Here Before?

Well, it looks like Governor Richardson is committed to making sure that his legacy to New Mexico is a budget crisis (subscription):

Gov. Bill Richardson's proposed universal health coverage plan would require $590 million in new general fund spending over the next five years, with business picking up most of the tab, Human Services Secretary Pamela S. Hyde said Tuesday.

Thankfully, at least two Senator's are showing some fiscal sense:

Legislative Finance Committee Chairman John Arthur Smith, D-Deming, told the Journal the Health Solutions budget assumes significant new federal matching funds for the state's Medicaid program— which would be in addition to the extra money collected from employers and other new revenue sources.

"That's a sort of ostrich with its head in the sand," Smith said. "Congress is trying to slow Medicaid spending."

The administration's budget counts on additional federal funds to help pay for the program.

"I don't think we're going to buy the governor's numbers," said Senate Minority Whip Leonard Lee Rawson, R-Las Cruces, who is a member of the committee. Rawson also told the Journal he opposes giving Richardson more power by authorizing a new health care authority that is part of the governor's package.

We'd be wise to heed these two gentlemen. After all, it wasn't that long ago that Senator Rawson was warning us about another spending fiasco of Governor Richardson's administration:

Four years ago this month, in ... a special legislative session called by Gov. Bill Richardson, lawmakers passed a mega-bill to improve 37 roads at a cost of nearly $1.6 billion.

Tucked into the legislation was a phrase that authorized one of New Mexico's most expensive and controversial transportation projects— not a road but a commuter rail system from Belen to Santa Fe.

Back in 2003, documents show, the cost for the rail project was listed at $90.2 million. Now the projected tab for the RailRunner Express has ballooned to as much as $425 million— and that doesn't include another $50 million held in escrow.

That's one-fourth of the total authorized for all projects in GRIP— also known as Governor Richardson's Investment Partnership.

While work on the RailRunner is proceeding full speed, other road projects authorized in the GRIP bill have moved to the back burner for lack of funding.

Over the past year, the GRIP funding shortfall has gone from $250 million to nearly $500 million.

It's a cash crunch created by what some lawmakers say is the need for more money for the RailRunner, increased costs for road construction and a projected decline in federal transportation funding.

The Legislature's attempt this year to gain more oversight of train finances proved futile. Richardson line-item vetoed language in the appropriations bill that would have required a separate RailRunner operating budget and quarterly reports on its progress and anticipated expenses.

In the five months since that veto, commuter rail capital costs have grown by 33 percent, legislators learned recently.

Sen. Leonard Lee Rawson, R-Las Cruces, said he feels the Legislature was deceived as to the project's true costs.

"How can you miss the mark five fold without deliberately being deceptive? What we've had here is bait and switch," Rawson said.

Are we really going to allow this bait and switch to happen TWICE?

Leave No Constituent Happy

I'm trying to figure out Mayor Marty Chavez's plans for post-2009. There's been a lot of speculation that he was planning on challenging Diane Denish in a Democratic Primary for Governor. But lately, all he seems focused on doing is alienating just about everyone in the City of Albuquerque.

First, he installs the red light cameras to the dismay of nearly every citizen. Then, he makes Albuquerque the sanctuary of illegal immigrants with criminal tendencies. Mayor Chavez follows that brilliant plan with an announcement that he is seriously considering closing all golf courses in an attempt to balance a budget shortfall of $200,000:

Mayor Martin Chávez warned this week that he will shut down municipal golf courses if needed to balance their budget.

Chávez delivered the warning during a meeting Thursday with Albuquerque's golf advisory board.

The board, meanwhile, is discussing whether to ask the City Council for an increase in golf rates.

"I will close the doors," Chávez said he told the golf board. "I have to balance the books."

This coming from the guy whose administration went hundreds of thousands of dollars over budget on a couple of towers and tried to raise taxes to build an unneeded trolley down Central. Kinda makes you wonder what he's got planned next. I really can't figure out who he has left to alienate.

Classic Bill Richardson

You've got to love it. Governor Bill Richardson's attempt to portray himself as a fiscal conservative (subscription) is nothing short of amusing.

Democratic presidential hopeful Bill Richardson on Thursday blamed President Bush for the nation's economic woes as he released his own economic plan.

It includes a constitutional amendment to balance the budget, and it would eliminate congressional earmarks to reduce wasteful spending, and reduce tax breaks and loopholes for corporations and the wealthiest Americans.

If anyone on the national scene takes time to look into Bill Richardson's actual economic policy as Governor, they too would realize how ridiculous this is. First, someone please help me understand exactly what "economic woes" Bill Richardson is blaming on President Bush. Take a look at some of these facts presented by William Poole, President of the Federal Reserve Bank of St. Louis, in a speech made earlier this year:

Three remarkable facts deserve attention. First, real GDP growth, though sluggish in 2002, has been robust since 2003, and the unemployment rate is now down to 4.6 percent. Second, long-term inflation expectations have hardly budged. Third, the quarterly average yield on 10-year nominal Treasury securities is actually slightly lower today than it was in mid 2002. The economy has performed well despite a near tripling of crude oil prices since December 2001. In years past, an energy price shock of this magnitude was typically associated with a substantial increase in inflation and a sharp recession.

Two things are different about energy price increases this time. One is that the increases were primarily a consequence of a booming world economy, which raised energy demand rather than a supply shock. Second, monetary policies here and in most other countries have done a fine job of anchoring inflation expectations.

Now, I am a fiscal conservative, so I do admit I'm not at all pleased by the overall growth in government spending we've experienced at the federal level. However, for this same reason, I can tell you unequivocally that Governor Richardson is not the man for the job in Washington. State spending in New Mexico during Richardson's tenure has increased at an astronomical rate.

All I can think is that maybe Bill Richardson's Eastern Nevada Field Director, Kristian Forland, helped draft the economic policy before his departure. At least, that would explain the fuzzy mathematical logic.

A Rare Tom Udall Post

I don't spend a lot of time writing about U.S. Representative Tom Udall (D). Mostly, because he really doesn't seem to do much to write about - positive or negative. Sure, some bloggers and the MSM gave him a lot of ink when Udall was appointed to the House Appropriations Committee:

It wasn't an accident, fluke, luck or anything else of that nature. It had been in the works for a long time. And it was evidence that playing by the old rules still works quite well, thank you.

Udall had been working at getting a seat on this most powerful of all committees ever since former Rep. Joe Skeen announced his retirement almost five years ago. Skeen had been on the Appropriations Committee for many years and had chaired several of its subcommittees.

That made Skeen a "cardinal," a title given to Appropriations subcommittee chairmen because of the tremendous power they wield. Udall won't be chairing a subcommittee anytime soon, but that's where he's headed.

So, what does Representative Udall do after all of these years of trying to get into the powerful Appropriations Committee?

The House approval, on a 312-112 vote, would cut nuclear weapons spending by the Department of Energy by $396 million— 6 percent.

The Senate, meanwhile, is pushing a $213 million increase— 3 percent. To come up with a final spending plan, leaders of the two bodies must come together to reconcile the differences between the two spending plans.

Sorting out the differences in the nuclear weapons budget involve larger questions about how much money is available for related energy and water projects in fiscal 2008.

The House bill could mean the loss of 900 jobs at Sandia National Laboratories and even more at Los Alamos National Laboratory.

Democrat Tom Udall, who represents Los Alamos, voted in favor of the bill. New Mexico Republicans Heather Wilson, whose district includes Sandia, and Steve Pearce voted against it.

Ouch.

Richardson Sleight of Hand

Somethings never change, and Governor Bill Richardson's fiscal sleight of hand tricks remains one of them. Granted, the Governor only has time for an occasional visit now and again to the Land of Enchantment, but as this Albuquerque Journal Opinion piece points out Richardson's legacy is alive and well (subscription):

Gov. Bill Richardson's Cabinet just got more expensive. His choices to head up the Department of Health and the Department of Higher Education, a new slot under Richardson, together will be paid $156,650 more than their predecessors.

That won't strain the department budgets, however, because the University of New Mexico and New Mexico State University are picking up $379,750 in salaries for three new top officials in the departments.

Jeez, talk about double dipping - it's ALL TAXPAYER MONEY. But, it gets a whole lot worse. This is a classic example of hiring the fox to watch the hen house:

There are concerns other than financial. These officials oversee the institutions that subsidize their salaries or, in the case of Flores, cover it.

Hmm, I wonder what the Governor's Ethics Task Force thinks of this classic double dipping, conflict of interest scenario. As I recall, the task force is co-chaired by a member of each of the Universities in question.

Cutting Security Funding and Increasing Pork

Somethings are expected. For example, when the Democrats took over from the Republicans in Congress, it was a pretty safe bet that there would be some changes. However, no one could have predicted the type of vindictive changes that have in fact took place.

First, you had a Democratic Committee Chairman playing politics with the memory of a war hero, and now you have the Democrats willing to undermine national security to settle old scores:

“I am surprised by the extent to which the House Appropriations Committee has gone out of its way to single out Los Alamos, and to some extent Sandia. The House bill is stunningly punitive in its treatment of Los Alamos. This bill would be devastating for Los Alamos, surrounding communities and New Mexico overall,” said Domenici, who is the ranking member of the Senate Energy and Water Appropriations Subcommittee that funds DOE and the national laboratories.

And, you can't even argue these cuts are being done in the name of fiscal responsibility. Why not? Well, because the Democrats have already demonstrated a willingness to sidestep their own rules designed to shed light on frivolous earmarks.

Yeah, this all makes sense. Slash national security budgets in a time of war and make it easier to increase unaccountable spending for pork barrel projects. Aren't you glad you voted for change?

A City Council Candidate's First Misstep

I always encourage candidates for office to blog. I think it's a great way to get your story out there and keep your potential constituents engaged. I like to point out that when I ran for the State Legislature in 2004, my campaign website (not a blog at the time) had about 750 visits between January 2004 and June 2004. In order to get those visitors, I knocked on hundreds of doors and spent over $20,000 in campaign materials.

The next year, I turned that website into the blog you're reading today, and between January 2005 and June 2005, I ended up with over 10,000 unique visitors - without spending a single dollar. That's right, I went from 750 to over 10,000 readers in the same six month period. Today, those numbers are larger, much larger.

Now with all that said, one of the rules a candidate should follow, if they're going to blog, is to stick to the truth. See, in the blogosphere it is just too easy to be called to task if what you're trying to do is build a campaign on outright lies.

Here, let me give you an example.

A woman named Paulette de' Pascal is running in District 4 for Albuquerque City Council. From her bio and her picture, she seems like a nice enough lady, and you have to applaud her decision to blog. As I've pointed out, it's a nice low cost way to communicate, and it will make a great complement to all of the out of pocket expenses she is already able to avoid by opting to run her campaign on the taxpayer's dime. Not the way I would go, but hey, those are the new rules, so more power to her.

Ms. de'Pascal started out her campaign blog with a nice first post:

Hello
Allow me to introduce myself, I am Paulette de'Pascal,
Candidate for City Council, Albuquerque, NM, District 4.
Please feel free to share your issues and concerns with me.
It is my intention to communicate your interests, as your Councilor.
Thank you.

Unfortunately, it took less than a week for Ms. de'Pascal to depart from the niceties and begin to go quickly downhill:

Before I close today's blog, I'd like to touch on the desire of our current City Councilor who does not agree with our Mayor on lowering the the sales tax. For some of our constituants, a lower tax would mean the difference in the type of bread, milk or cereal they buy, every penny adds up.

Now, I'm not one to have a problem with pointing out an opponent's record. That's just part of politics. The problem is that City Councilor Brad Winter, the councilor to whom Ms. de'Pascal is referring, did agree with "our Mayor" on lowering the sales tax. And, I know because I took to task the one Republican Councilor who did not support the tax cut.

I'm also pretty sure that Ms. de'Pascal is aware of Councilor Winter's actual voting record. After all, the vote and position of all the candidates was very clearly reported in the Albuquerque Journal (subscription):

Craig Loy, Sally Mayer, Ken Sanchez and Brad Winter voted against delaying the tax reduction. Voting to delay were Isaac Benton, Michael Cadigan, Don Harris, Martin Heinrich and Debbie O'Malley.

She is probably also aware that it was Councilor Brad Winter that sponsored another 1/8 cent tax cut that went into effect on January of this year. And, I'm sure she knows that Councilor Winter was one of three city councilors to oppose a tax extension championed by "our Mayor" to build a streetcar.

So, what could Ms. de'Pascal possibly be thinking? After all, this does not exactly launch her campaign in the most positive light. Maybe she figured she could leverage the negative and slanderous ads that were recently run by some unknown entity billing themselves as the 'Citizens for Responsible Budget:"

Why are City Councilors Brad Winter and Don Harris voting to raise out taxes? Good question. Brad Winter and Don Harris ran as fiscal conservatives, promising to cut city spending and taxes. Now they are going back on their word voting against a tax cut and making those campaign promises look like a lot of hot air. City Councilors Brad Winter and Don Harris opposed the tax cut and voted for more spending at a time when Albuquerque's economy is booming and tax revenues are at record levels. Call Brad Winter and Don Harris at 768-3100. Tell them to keep their word to Albuquerque voters. When candidates Brad Winter and Don Harris said they would cut taxes and spending, was it the truth or just a campaign gimmick? Call Brad Winter and Don Harris at 768-3100. Tell them to hold the line on spending and cut taxes. Remember, Brad and Don, it's our money, not yours.
Paid for by Citizens for Responsible Budget.

Well, I'm glad to see public funding of campaigns is off to such a great start. Now we, the taxpayers, get to pay for the campaigns in order to leave more money for front groups to spend in slander campaigns. It's a beautiful new day.

That Didn't Take Long

I remember something about the Democrats making all kinds of promises about the type of changes they would make in the first one hundred hours of controlling Congress:

If all goes according to plan, the House will get through its hundred-hour agenda in 15 days, or 360 hours, by standard definition. Today, the House will take up an ethics package. Tomorrow, new budget controls.

And, speaking of Congressional budget controls:

After promising unprecedented openness regarding Congress' pork barrel practices, House Democrats are moving in the opposite direction as they draw up spending bills for the upcoming budget year.

Democrats are sidestepping rules approved their first day in power in January to clearly identify "earmarks" — lawmakers' requests for specific projects and contracts for their states.

Rather than including specific pet projects, grants and contracts in legislation as it is being written, Democrats are following an order by the House Appropriations Committee chairman to keep the bills free of such earmarks until it is too late for critics to effectively challenge them.

Now, that's got to be a new low: Creating a new rule in January and sidestepping it in June. You Independents, who read this blog, might want to keep that in mind for the next election.

The Latest Train Numbers

It's been awhile since Governor Richardson's train to nowhere has been in the news. But, I thought you might find this interesting:

The $400 million budget for the Albuquerque-to-Santa Fe phase of the Rail Runner project is also still partially unfunded. Congress promised to contribute $75 million, but the state hasn’t yet received the money. Because of the delay, Richardson asked lawmakers during the last legislative session to set aside $35 million for the project. At the time, his spokesman said the governor would make up the other $40 million next year.

In the Albuquerque area, the trains have carried more than 360,000 riders since the service began in July 2006.

The good news is that we're not yet at the $1.3 billion I projected in December of 2005. The bad news is that the $400 million price tag for this latest portion is rapidly approaching double what was originally pitched for this segment, and I'm willing to bet it will be more when all is said and done.

And, I ought to add a little perspective here... Some of you might be pretty darn excited about that "360,000 riders" since July of 2006. That is until you take a look at the traffic flow map of the Greater Albuquerque area and realize that over 170,000 people are driving just one small section of the Big I in a single day!

Between 2000 and 2002, $293 million was spent on the Big I construction, which included the construction of 45 new bridges and 111 miles of road reconstruction, to accommodate 300,000 vehicles per day. Compare that to the rapidly approaching $1 billion in costs of Governor Richardson's train to serve 360,000 people over nearly a year.

Oh, and it is significant to note that the Big I roadway project actually came in under budget. When was the last time you heard of anything done by the Richardson administration coming in under budget? The answer is quite possibly never.

Very Troubling Indeed

I wrote about Mayor Martin Chavez's proposed tax cut a little more than a month ago. I caught some flack from my friends at Rio Grande Foundation for not being a Chavez cheerleader on this one. However, I thought I had made my support for the tax cut very clear:

We're not excited because it is just not enough. However, with that said, I'll take what I can get, so I do support the return of our money. I also would recommend that any Republican on the City Counsel considering not supporting the tax cut, immediately stop by the County Clerk's office and change their registration to Democrat because that's where they will need to look for support the next time they are up for re-election.

Well, last night the Albuquerque City Council voted (subscription), and here is the result:

City councilors late Monday night approved a tax cut proposed by Mayor Martin Chávez, but they delayed it for six months to help provide the county with $9 million for jail expenses.

The eighth-cent reduction in gross-receipts taxes will take effect on July 1, 2008. Chávez wanted to cut taxes Jan. 1.

Craig Loy, Sally Mayer, Ken Sanchez and Brad Winter voted against delaying the tax reduction. Voting to delay were Isaac Benton, Michael Cadigan, Don Harris, Martin Heinrich and Debbie O'Malley.

Houston, we have a problem. It seems one Republican thought it was okay to keep on spending money the City shouldn't have had in the first place. Worse, he tried to portray delaying a tax cut as an act of defiance:

[Don] Harris, the council's budget chairman, said the approved plan was "far superior" to the mayor's budget proposal.

"We are doing our job. Our job is not to rubber-stamp whatever the mayor wants to do," Harris said.

Note to Councilor Harris... Republicans ARE NOT going to look kindly on a city councilor who refused to give taxpayers back $9 million. You can't say I didn't warn you back in April. There are places to make a stand, but standing in the way of a tax cut is not one of them.

How to Get Your Party Funded

I've got a couple more notes on the taxpayer funded World Peace Conference. According to Jay Miller, there isn't a whole lot of that peaceful easy feeling being associated with this $420,000 event:

The problem with a government-sponsored peace conference is that the state doesn't have a position on peace so who knows what to do at a conference?

The Legislature, which appropriated $420,000 for the gathering, finally decided the focus would be peace tourism, so the Department of Tourism was given the responsibility of planning it. We're spending a lot of money on space tourism, why not peace tourism too?

No one thought much of that idea or could do much with it. So the folks at Tourism brought in some peace professionals. Yes, there are such things.

But that didn't set well with New Mexico's many home-grown peace groups, which had been working on that mission for years. Why hadn't they been involved, they asked?

Hmm, $420,000 appropriated by the Legislature, but the State Tourism Board says they are staying under the $280,000 budget. I wonder where that extra $140,000 is being spent?

And speaking of appropriations, it took a little digging, but you'll never believe where this money came from. You see, a bill was carried by State Senator Shannon Robinson (D) for this very important peace building event, but it died. However, no worries, this is after all New Mexico, and where there is a will there is a way.

According to legislative sources, the money for this event came out of 2006 capital outlay fund. That's right, the money that is supposed to be used for building roads and repairing schools was instead set aside in during the 2006 Legislative Session for a peace conference. You might remember that 2006 was the year in which Governor Bill Richardson vetoed much needed capital outlay for our schools.

Yet, he let $420,000 of capital outlay be earmarked for this exclusive Santa Fe party.

Maybe since Ballantines PR, the Los Angeles based boutique PR agency that is running this conference, billed it as "Building a Culture of Peace," Governor Richardson thought it would be okay to use capital outlay. After all, it does have the word "building" in its title.

Moving from Laptops to iPods

The New Mexico State Legislature appropriations never ceases to amaze me. When it comes to education, we have some of the worse worst performing schools in the nation. Yet, rather than getting back to basics, they throw tacpayer taxpayer funds at one bad idea after another. It wasn't that long ago that they gave every 7th grader at Tohatchi middle school a laptop computer. Now, they're giving iPods to the kids (subscription):

Cutting-edge technology sets Southwest Secondary Learning Center apart and keeps the charter school's waiting list long, principal Dolly Juarez said.

Still, $40,000 for iPods that the school got from the state Legislature may be too extravagant for Albuquerque Public Schools, and officials said they may reject it.

"We can always say 'no,' " said Kizito Wijenje, APS capital master plan director. "Last year, we got money for SUVs, and we said 'no.' "

The school wants the iPods, which cost between $250 and $350 each, so students who don't have high-speed Internet connections at home can download lectures whenever or wherever they want, Juarez said.

Yeah, I'm sure the kids are going to use the iPods for downloading lectures. Just like those laptops helped Tohatchi Middle School start making "adequate yearly progress." Oops, wait that didn't happen.

Then again, maybe this brilliant iPod idea also has Governor Richardson's blessing. I'm thinking this is a presidential campaign platform with legs - an iPod for every American.

It's Like a Sale at Macy's

Paul Gessing over at Rio Grande Foundation had an interesting opinion piece recently published in the Albuquerque Journal (subscription) which began:

Albuquerque Mayor Martin Chavez has proposed a one-eighth cent reduction in the gross-receipts tax rate. If the City Council goes along with the plan, the rate charged within the city would drop from 6.875 cents to 6.75 cents on each dollar spent, and $18 million that would have been budgeted by the city would be returned to taxpayers.

I've been asked by at least one individual in Mayor Martin Chavez's administration, why aren't we - the Republican blogosphere - all over this. We're talking about a tax cut that is worth in the neighborhood of $200 million when all is said and done. Shouldn't we be singing Mayor Marty's praises? Heralding the fact that he is a tax cutting Mayor. Applauding his sense of financial control. You know, the type of guy we could all get behind for Governor in 2010.

Well, to understand the reason for the lack of enthusiasm, you only need to read the rest of the opinion piece:

Gross-receipts tax rates in Albuquerque have jumped in recent years. The current 6.875 percent rate is 18 percent higher than it was as recently as 2000, when the rate was only 5.8125 percent.

That's right in the span of six or so years, we've seen a whopping 18% increase in the gross receipts tax. Today, it is a full 1.0625% higher than it was just six short years ago. Yet, Mayor Chavez can't understand why we're not heralding him as a conquering hero for offering to give back 0.125%. If that 0.125% give back is worth a couple of hundred million, just how much did that rapid tax increase steal from the back pockets of hardworking taxpayers?

We're not excited because it is just not enough. However, with that said, I'll take what I can get, so I do support the return of our money. I also would recommend that any Republican on the City Counsel considering not supporting the tax cut, immediately stop by the County Clerk's office and change their registration to Democrat because that's where they will need to look for support the next time they are up for re-election.

It's MY Cash Cow, Get Your Own

It looks like the truth is finally out regarding the red light cameras. Many believe that the red light cameras are nothing more than a money printing machine for the City of Albuquerque. Yet, the Mayor has often defended them as important to public safety. That is until the state government decided they wanted a piece of the action (subscription):

Albuquerque Mayor Martin Chávez said Tuesday that he'll pull the plug on the city's traffic camera enforcement program if legislators pass a law requiring the city to share some of its fees with the state.

Senate Bill 780, unanimously approved by the Senate last week, would require the city to give the state $74 for every citation issued by the traffic camera program.

"This bill is a program killer," Chávez said. "This is very unfortunate. The state's largest city comes up with an innovative program to improve public safety, and the legislators just see green."

You tell me. Who is seeing green? Mayor Chavez wants to be Governor. You've got to be kidding. Yet again, Mayor Marty demonstrates that his primary concern is increasing the city budget anyway that he can. Any argument that public safety is his number one concern just went speeding by.

Already a Drain on the Budget

It sure didn't take long for Spaceport America to start costing taxpayers more than originally promised. Governor Bill Richardson's generous gift to British billionaire, Sir Richard Branson, is the gift that just keeps on giving.

Last year, Governor Richardson spent $100 million of our hard earned tax dollars on a billionaire's dream instead of new schools for our children. This year, he wants to to take 10% of the state's road budget and build a nice ramp for Sir Branson. This is on top of the increased local gross receipts tax being trust upon Southern New Mexicans.

Oh yeah, this trip just keeps getting better.

Simple Math, Scary Future

Ok, by now we all know that (subscription)...

Higher-than-expected revenues from oil and gas, as well as corporate and personal income taxes, will pump an estimated $720 million in extra money into New Mexico's checking accounts.

Gov. Bill Richardson and the Legislative Finance Committee have recommended spending about $5.7 billion for the fiscal year that starts July 1. That's up from $5.1 billion this year and would represent an 11 percent increase in state spending.

The "new money," as lawmakers and bureaucrats call it, could go toward everything from tax cuts to higher state worker and teacher salaries to expanding pre-kindergarten, more state health care and dealing with overcrowded prisons.

Reread that last paragraph. What do you notice about all of those items? If you answered, that with the exception of tax cuts, they're all recurring costs, you're a winner.

Now, let's put this into perspective. Imagine that at the end of last year your employer gave you an unexpected $720 bonus. Do you:

a) Take that $720 and buy something nice for $720.
b) Take some of the $720 and buy something nice and invest the rest for your future.
c) Commit to spend $720 every year from this point forward.

If you answered "a", you better hope Social Security stays funded. If you answered "b", they wrote about you in the book, The Millionaire Next Door. If you answered "c", the bad news is that you're fiscally irresponsible and most likely have a bankruptcy in your future. The good news is that you have a VERY promising future as a New Mexico politician.

Let the Spending Begin

In the Op-Ed section of today's Albuquerque Journal, New Mexico's Secretary of the Department of Finance and Administration, Katherine Miller, has a letter which begins:

Recent calls for caution against a "spending spree" during the legislative session are prudent and necessary given the record amount of money that is available. In fact, Gov. Bill Richardson in a speech to business leaders last month said that he will not allow a spending spree.

Ok, this sounds good to me. A little restraint seems seriously past due. After all, when Gary Johnson left office the state budget was nearly $3.9 billion (an amount he had vetoed as excessive), and it has been growing larger ever since:

2002 - $3.9 billion
2003 - $4.0 billion
2004 - $4.4 billion
2005 - $4.7 billion
2006 - $5.1 billion

So, I'm thinking it's about time to we show a little fiscal restraint up in Santa Fe. But wait, what's this in the Metro Section (subscription):

Gov. Bill Richardson is proposing a nearly $5.7 billion state budget that provides for an 11 percent increase in spending next year and leaves room for about $125 million in tax cuts.

Oh no. Let the "spending spree" begin. Governor Richardson is throwing caution to the wind, and it's spend, spend, spend up in Santa Fe. Think about it. In just five short years, Governor Richardson has allowed - no, make that encouraged - increasing state spending by almost TWO BILLION DOLLARS.

My Point Exactly

Governor Richardson's plan to give all teachers a seven percent raise just doesn't make any sense. Some of those teachers deserve MUCH MORE than a seven percent raise, and some of those teachers don't deserve any raise at all, and a few of those teachers don't even deserve their job. If you don't believe me, read this:

As I was saying, given these past [testing] experiences, the "Instructional Council" at my school had a great idea. So great, I separate the idea into its own paragraph....

Send the kids home and have our Spring Parent/Teacher conferences in the afternoons of three testing days.

This idea kills so many birds with so few stones that worldwide bird populations would be decimated and we could still build a sturdy stone gymnasium. Kids test at the optimal time, "studies" show, are sent home during the useless afternoons, Parent/Teacher conferences do