Wednesday, February 17, 2021On The Econ Beat: Lifting New Mexico; How To Use That Heaping Reserve; Broadband And A New Tingley On The List, Plus: More Congress Watch News arrived late Tuesday that a confirmation hearing for ABQ Dem Rep. Deb Haaland as Secretary of Interior will start Tuesday, February 23 at 7:30 a.m. ABQ time. The hearing is before the Senate Energy and Natural Resources Committee. If approved there, the nomination will advance to the full Senate for a vote. GOP opposition to liberal Haaland has grown more noticeable in recent days but she is still expected to become the first Native American to serve as Interior Secretary. Our sources were calling for a late February committee hearing followed by a full Senate vote in March. That appears the way will it come down and will place the special election to replace Haaland into June. Now on to the econ beat. . . With the pandemic crippling large swaths of the economy, we quoted retired NMSU economist Jim Peach January 12 saying spending down the state's budget reserves--even towards zero--would not be irresponsible given the economic backdrop. The only trouble with that quote is that it wasn't from Peach. It was from another noted NMSU economist, Chris Erickson, who has advocated for aggressive stimulus. We asked Dr. Erickson for his latest assessment: Joe and Jim, My testimony before the Economic and Rural Development Interim Committee included the following statement: The legislature should not be afraid to run down reserves to near zero [paraphrased]. However, circumstances have evolved. At the time of my testimony the forecast was for an additional large revenue shortfall. Now the forecast is for “new money.” A 25% reserve is too large, but “near zero” is too low in the current circumstances. One can argue what the correct level should be but 10% seems reasonable. At last report the reserves were at a record-setting $2.5 billion or 35 percent of the $7 billion General Fund budget. Rising oil prices and federal economic relief have helped. Economic authorities around the globe agree with Erickson, urging governments to continue aggressive stimulus to prevent a move backwards. In New Mexico, after more than a decade of dominance by austerity hawks and a tradition of fiscal conservatism by the Legislative Finance Committee, there are not many in Santa Fe willing to embrace that paradigm, but it's not too late to start. LIFTING NEW MEXICO  --Start with establishing a $600 million broadband fund to lift our connectivity ranking from 49th in the nation. A bill (SB 93) has begun to move in Santa Fe that establishes an office of broadband, separate from one that now does broadband work but combines it with other tasks. A broadband planning office without a major cash commitment is like an office without furniture. Unless there's an economic collapse of Depression caliber, that $600 million would hardly be missed. --Establish another fund of $200 million dedicated solely to satisfying the requirements of the Yazzie lawsuit. The court found the state to be in violation the state Constitution by failing to provide adequate education to thousands of at-risk public school students--mostly students of color. A $200 million fund would give the state a plan to easily measure progress or lack thereof to report to the court and finally provide the level of education those deprived deserve, --One more. $100 million to build a 21st century multi-use facility at the NM state fairgrounds to replace the nearly 70 year old Tingley Coliseum. Never mind that $40 million state bond ask from the NM United soccer team who want their own dedicated and mostly taxpayer funded stadium. That is high risk. For decades every attempt at starting a lasting ABQ sports franchise has withered. But NM United could use the new multi-use facility, as could major touring concerts, the annual Pow Wow of Nations, horse shows, conventions, the annual state fair rodeo and a myriad of other activities that would address a gap in quality of life amenities. The next generation is looking for opportunity and quality and they are not finding it here. These proposals total $900 million of that $2.5 billion reserve, leaving $1.6 billion under the mattress for the sky is falling crowd. There are points to be put on the board, but only if we have leadership determined to take the risk to make the big play for the big pay off. CONGRESS WATCH  I was told in advance that running for county central committee or precinct chair would likely be futile because. . . I would be seen as a party outsider because I have had to sit on the sidelines as a political eunuch for the 12 years my husband was on the Supreme Court.
But in a social media post ABQ attorney Eric Shimamoto questions that explanation It's odd that Randi would suggest she couldn't volunteer in her ward for the 12 years her husband (Charles Daniels) was on the Court: she continued to practice law in the courts of this state that entire time. The latter seems much more likely to lead to a conflict-of-interest than the former. For her part McGinn has now brought her grandchildren onto the trail, posting videos of the little ones as part of her #Grandi for Congress campaign. Now, if only they were old enough to be on the state central committee. . . This is the home of New Mexico politics. Interested in reaching New Mexico's most informed audience? Advertise here.   |
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