Town Hall on Governor Created Problems

It looks like New Mexico First will be holding a "town hall meeting" to discuss the shortfalls in addressing the state's transportation infrastructure needs:

New Mexico’s transportation infrastructure is vital to the state’s economic prosperity and integral to the quality of life, health, and welfare of our citizens. Traditional funding has been well below the actual needs of maintaining a modern transportation system. Federal, state, and local investment in transportation represents less than 40% of the actual needs of the system creating a sense of urgency for states to seek alternative funding options. Both federal and state transportation revenue has not been sufficient to keep up with inflation, the rising cost of construction, and the demands for transportation services of a growing population. Without an increase in investment, our transportation system will become more congested and the condition of our transportation infrastructure will become less safe.

The state's annual spending has grown by BILLIONS under Governor Richardson. Considering that transportation infrastructure is supposed to be one of the top priorities of any government spending, it kind of makes you wonder how we ended up in this crisis situation. Then again, I guess all you have to do is look at what Governor Richardson wants to do with the latest projected windfall of nearly $400 million to understand:

But Richardson pointed to the revenue projections in renewing his appeal to lawmakers to approve a heath care expansion. The governor has said he'll call a special session of the Legislature in August or September to consider mandating health insurance coverage for all residents. New Mexico has the nation's second highest rate of uninsured.

"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."

Yeah, that makes sense. Take a one time windfall and use it to fund a recurring entitlement program at a time when we are unable to meet our basic infrastructure needs. What I find most ironic is that this windfall comes from the oil and gas industry, yet the Governor is doing everything he can to increase operating costs on this industry and push them out of the state:

If the regulations are approved, Gallagher said it will add $150,000 in operating costs for every new well dug in the state.

"If industry drilled just 750 new pits next year, it would mean $112.5 million in additional costs," Gallagher said. "We hired an economist to calculate those figures, and we presented them to the OCD, the lieutenant governor, and the governor. They're not just kicking the state's cash cow in the stomach, they're gutting us."

Raye Miller of Artesia-based Marbob Energy Corp. said many operators will cancel plans to drill new wells if the pit rules are passed.

All of this just serves to bring us full circle back to that town hall meeting:

Highway construction costs are soaring and federal funding to improve roads is declining, said Johnny Cope, chairman of the state Transportation Commission. At the same time, rising gas prices are hurting many New Mexicans, he added.

"This town hall will allow us to discuss these issues and explore some viable options to address the transportation needs of all New Mexicans," Cope said.

Well, here is a thought Mr. Cope... Why don't you call the Governor and ask him to adopt a three point plan:

1. Stop adding unnecessary costs to drilling that are just going to manifest themselves as rising gas prices at the pump.
2. Stop spending oil and gas revenue on creating new unnecessary programs and instead spend it on needed infrastructure.
3. Stop unnecessary regulation on an industry that provided the lion's share of our state budget revenue.

It seems to me that if that plan were followed, we wouldn't even have transportation needs that weren't being addressed (i.e. funded).

Same Old Richardson Administration Antics

It's been awhile since we've seen ethically questionable decisions from the Richardson Administration in the news (subscription). But, it looks like old habits die hard:

After canceling a request for competitive proposals, the administration of Gov. Bill Richardson awarded a no-bid deal to a political supporter and onetime appointee to supply automated teller machines for the State Fair.

Automated Financial Technologies of Albuquerque, headed by Rafael Gutierrez, got the deal in 2004— about a year after Gutierrez resigned an appointment by Richardson to the staff of the Gaming Control Board.

Automated's machines replaced those of a competitor, California-based Mobilemoney, which had provided the service and wanted to compete for the business.

Expo New Mexico in July 2004 issued a request for bids to supply ATMs for year-round use and to bring in additional machines at fair time.

Expo officials canceled the request a month later and never reissued it. Automated took over Mobilemoney's job of supplying additional machines for the State Fair later that year— even though Mobilemoney offered the fair more money than it's getting now.

Larry Dunnwald, president of Mobilemoney, said he believes the company lost the State Fair business because Gutierrez is a Richardson friend.

Well, Mr. Gutierrez obviously didn't win the business because he offered the Fair a better deal, so it would seem Mr. Dunwald's belief has some merit. One thing to keep in mind here is that we, the taxpayers, are subsidizing the Fair's operations, so when antics like this occur, it is our pockets that are being picked.

A Man Who Knows About Monarchies

Governor Bill Richardson and Clinton strategist James Carville appear to have had an entertaining little debate on Larry King. This is by far my favorite part of the exchange (subscription):

Richardson told King that he believes Clinton was too negative during her quest to win Pennsylvania.

There's a sense of "clinging to the throne," Richardson said, clearly referring to the Clinton camp. "You know, we're America, we're not Monaco."

This coming from a man who has made a habit of tossing aside the New Mexico Constitution when it suits his needs. I hope during the next legislative session our legislators take time to remind the Governor that "You know, we're America, we're not Monaco." After all, they don't call him King Bill for nothing.

Bill Richardson's Legacy Begins

We are already beginning to feel the effects of Governor Bill Richardson's legacy of spending, spending and then spending a little more:

Gov. Bill Richardson has been a strong advocate of the spaceport.

"The governor is very hopeful the vote will be successful and the project will move forward," said Gilbert Gallegos, a spokesman for Richardson. "The reality is the state has put in a lot of actual capital and committed a lot of time and energy to the project."

The tax would add a 25-cent charge to a $100 purchase. State lawmakers also have earmarked at least $110 million in capital outlay money over several years to help with startup costs.

In recent weeks, spaceport director Steve Landeene and other officials have worked to educate voters on what they see as the project's merits.

So, let's see, the Governor is apparently two for two. The new train requires new gross receipts taxes to support it. The new spaceport requires new gross receipts taxes to support it. I wonder what else the Governor has pushed through the legislature that will require new gross receipts taxes to support it.

Where's the outcry from all you people who support buying local? I've got to tell you if gross receipts keep going up, you're going to find more and more people making their purchases tax free online. The burden of these regressive spend and tax policies are on the poorest amongst us. How come the advocates for the poor are not crying out? I don't get it.

Four Billion Reasons Against Universal Health Care

Just like there are consequences in life, there are consequences in government. The spending party never lasts forever. At some point the bill comes and then those spend, spend, spend politicians start looking at new ways to separate you from your hard earned money. But, don't take my word for it. Look at what one reasonable Democratic party leader had to recently say about the state of our state finances:

Tim Jennings warned his audience that he is a blunt speaker.

The president pro tempore of the New Mexico Senate indeed pulled no punches in addressing the attendees at the Association of Commerce and Industry's business day breakfast in Santa Fe.

"We're $4 billion in the hole," Jennings said of the fiscal challenges facing New Mexico. "But luckily we have $360 million in new dollars to solve that, so things are looking up."

$4 Billion in the hole! Ouch, that's not a pretty picture. I would suggest that any reasonable person would say, time to stop the spending. Any bill that is up in the legislature that requires new recurring funding should be dead on arrival.

In his State of the State the Governor said:

Our sound financial management of our permanent funds has allowed us to invest more than $3 billion into New Mexico schools and taxpayers. And I’d like to assure those who opposed the investment into our schools – our permanent funds have grown from $9 billion to $15 billion and our schools are benefiting from that investment.

Anyone want to bet how long it is going to take before some of our folks start planning another raid on that permanent fund? My guess is 2009.

Steve Pearce for U.S. Senate

I don't understand the thinking behind people asking Congressman Steve Pearce to run for the U.S. Senate seat being vacated by Senator Domenici. Now don't get me wrong. I'm a HUGE fan of Congressman Pearce. I just don't see how running to be New Mexico's Junior Senator representing the minority party at age 60 makes sense for a man with such a bright future.

Think about it.

By the end of the Congressman's second term in the Senate, about the time he would be moving up in the seniority ranks, he would be 72 years old - three years younger than Senator Domenici is today. That's not to say he wouldn't want to keep going into his 80's, but why would he want to do that?

If you're thinking I'm advocating for Steve just to spend the rest of his days comfortably ensconced in his current Congressional seat, you're wrong. That may be okay for someone like Congressman Tom Udall, a career politician from a political family. But, a leader like Steve Pearce can actually accomplish so much more.

Steve's a self-made business man from VERY humble beginnings who has a net worth that had him ranked in 2005 as the 22nd wealthiest member of the House. That means he could easily throw two to three million into a political race, and I think he should.

I think Steve Pearce should run for Governor in 2010. It just makes a whole lot more sense.

Like another self-made man, who was the first to be elected to two consecutive terms as Governor in New Mexico, Steve could provide the leadership and fiscal restraint that has been so sorely lacking on the fourth floor since Bill Richardson landed in the Governor's seat. At 62 years old, with millions in the bank and an impressive political, personal and business resume Congressman Pearce could surely win the Governor's seat - no matter who the Democrats put forth.

From there, well, as Governor Richardson has demonstrated, the sky is the limit. If Hilary Clinton were to win the Presidential election next year, and somehow managed to be elected to a second term, there is one thing that could be certain. By 2016, the country would be a mess and in need of a strong conservative leader.

In 2016, Steve Pearce would be a 69 year old, accomplished, conservative Western Governor with a leadership track record in politics and business second to none. Hmm, kind of reminds me of someone else who became the leader of the free world at 69 years of age.