Errors of Enchantment

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New Mexico government in a nutshell: spend more money, fail, wash, rinse, repeat

06.24.2026

If I had a nickel for every time I saw a similar story about New Mexico government, I’d actually be pretty wealthy. We’d ALL be wealthier if New Mexico politicians actually stopped spending money with seemingly no thought as to whether the spending would achieve stated policy goals or not.

Take the latest in a long line of such stories like this one from Source NM “Despite $2.6B investment, NM schools ‘largely failed’ to increase instructional time, report says.” The LFC report can be found here. Among its findings: While schools across the state have increased the number or the length of school days, chronic absenteeism and teacher absences are the most common sources of “time loss” and threaten to undermine the state’s progress.

Sen. George Muñoz (D-Gallup), who serves as vice chair of the interim Legislative Finance Committee, said he was disappointed that billions of dollars “haven’t moved the needle one bit.”

“I don’t know what’s going to change education. It ain’t money,” he said.

We couldn’t agree more with him. And, the problem with absenteeism is obviously not entirely the fault of the system itself. Certainly, Gov. Lujan Grisham’s fateful decision to keep New Mexico schools closed for over a year during COVID was a big factor in changing the culture around school attendance. But, there are undoubtedly an array of carrots and sticks that could be used to get kids to attend school regularly INCLUDING simply making sure that the education system does its level best to make the time spent in school worthwhile and free of bullying and other issues.

Tipping Point NM Episode 821: Victory at ABQ, Toulouse Oliver Drops Out, UNM Law Diversity, NM tax rebate? and more

06.23.2026

RGF won BIG for taxpayers last week in Albuquerque’s City Council defeating Councilor Bassan’s proposed gross receipts tax hike (again).

Paul recently traveled around Southeast New Mexico. Here’s what he heard and said.

Democrat Lt. Gov candidate Maggie Toulouse Oliver drops out of race. What’s next?

Sen. Peter Wirth announced that he won’t run again and won’t stand for Senate Majority Leader in 2027. Paul has thoughts.

UNM’s Law School dean is under fire for lack of diversity. Paul believes the dean’s opponents should join him in opposing state spending for the Law School.

The ABQ Journal talks to home builder and recent podcast guest Mackenzie Bishop about his plans to increase his business out of state.

New Mexico, time for a rebate on $850 million. This money would provide for a $1,000 rebate per filed tax return.

LFC: New Mexico SNAP program rife with fraud and abuse. The state’s SNAP payment error rate has climbed to 16.6 percent, the fifth highest in the country. As a result, New Mexico could face up to $173 million annually in federal cost-sharing penalties.

MLG’s unchecked “emergencies” are expensive in many ways

06.23.2026

More than any organization in New Mexico, the Rio Grande Foundation has continued to advocate for reform of New Mexico’s laws relating to public health emergencies. Our primary issue is to restore the Legislature’s role in approving and continuing emergencies, but we ALSO think a subject matter limitation SHOULD be part of the mix.

The big public health emergency of course was COVID-19 when the Gov. kept New Mexico children out of school for over a year. But, you may recall that the Gov. attempted to eliminate the 2nd amendment to the US Constitution in Bernalillo County as well.

Now, apparently, the Legislative Finance Committee has expressed concerns about separation of powers and executive spending without accountability. According to Source NM, “Gov. Michelle Lujan Grisham’s frequent use of executive emergency orders has fueled intense debate, unlocking nearly $554 million without legislative approval between 2023 and 2026. While largely directed at natural disasters, this spending—surging 543% over a five-year period—has drawn bipartisan scrutiny.”

    • Massive Spending Totals: State data reveals that Lujan Grisham signed over 800 executive orders between 2023 and 2026. In 2025 alone, 417 executive orders cost the state $304 million.
    • The Revenue Gap: These executive orders frequently tap the state’s Appropriation Contingency Fund. For instance, the governor spent roughly $380 million via emergency orders from this fund between July 2024 and mid-2026, despite the Legislature allocating only $150 million to it during that time. 
    • Broad Scope of Use: While a majority of the funds target severe natural disasters like the South Fork and Salt fires in Ruidoso and devastating burn-scar flooding, funds have also been used for emergency food assistance during federal shutdowns and National Guard deployments to Albuquerque and Española. 

Many lawmakers argue the executive branch is circumventing the Legislature’s constitutional oversight—especially since a significant portion of the disaster recovery funds are spent well after the immediate acute phase of an emergency, leaving ample time to call a regular or special legislative session. It looks like legislative action will be required once MLG is out of office to constrain the executive in all kinds of emergencies.

Sen. Peter Wirth, nice guy, part of the problem

06.22.2026

Recently it was reported that New Mexico’s Senate Majority Leader and longtime state senator Peter Wirth will not seek reelection (in 2028) and won’t be running for Leader in the 2027 session. Having interacted with Wirth a few times over the years I can say that Wirth is a nice and pleasant man. You certainly can’t say that for all legislators, especially so-called “progressives” that Rio Grande Foundation spars with on a regular basis.

But Wirth has been Majority Leader since 2016. He should be judged not on the basis of bills passed, but on outcomes for New Mexicans. And, as for nearly everyone involved in governing New Mexico, it is impossible to say Wirth has been a successful legislator or that he’s done much to improve conditions in New Mexico. Even amidst an unprecedented oil and gas boom Wirth has championed higher taxes, especially on those “evil” out-of-state corporations. In 2026 he led the charge for SB 151 which “decoupled” New Mexico’s corporate taxes from reforms enacted by Congress. Another tax hike at a time of record revenues and spending by the State.

While Wirth may think he’s bringing needed revenue to New Mexico, the reality is that he’s chasing businesses away from the State. Perhaps no other aspect of Wirth’s track record is more obviously harmful to New Mexico than these policies. New Mexico has zero major corporations headquartered here and PNM, by far the largest publicly-traded company in New Mexico, is desperately trying to find a buyer.

On the flip side, with a long track record of being in positions of power in New Mexico’s Legislature has Wirth ever stood firm AGAINST bad policy (MLG’s COVID regime comes to mind, but so does the gross receipts tax and so does our educational failures, not to mention the medical provider shortage)? Has he ever bucked his party to demand needed reforms? No, he has been a reliable voice in support of the same failed policies that have led New Mexico to 50th in education and poverty despite record oil and gas revenues and the fact that New Mexico is one of the most pleasant and beautiful states in the Union.

Adios Senator Wirth, but his legacy is one of failed policy.

ABQ home builder looks for opportunities outside New Mexico: RGF has the interview

06.22.2026

The Albuquerque Journal recently published an interview with local home builder Mackenzie Bishop. The gist of the story is that despite his deep ties to New Mexico and passionate advocacy for our State, Bishop is now considering his options in other states due to the “state’s lack of population growth, heavy taxation, rising home prices and affordability challenges, and bureaucratic hurdles working with local governments.”

He’s not alone. Productive New Mexicans are looking for options in other states and they happen to live in a fast growing part of our country albeit in one of the slowest growing and worst performing states. New Mexico’s problems are easily solvable, but the people and politicians have to actually WANT to solve them.

Before he talked to the Journal he sat down with the Rio Grande Foundation.  Check out this important conversation with Mackenzie Bishop!

New Mexico: time for a tax rebate on $850 million

06.22.2026

If you follow the Rio Grande Foundation’s work at all you may be aware that one of our absolute core efforts involves reforming and reducing the anti-business, regressive gross receipts tax. But, after eight years of Michelle Lujan Grisham’s governorship, we realize that she and the Legislature will take action.

But, with the State having $850 million in unexpected surplus revenues due to the war in Iran, we believe it is time for Gov. Lujan Grisham to call a VERY short special session for the purpose of providing a rebate to New Mexicans on all that extra money that New Mexico has been collecting. Remember, this $850 million is on top of the billions of dollars in annual revenues generated by the industry.

While it is hard to agree on exactly how much the rise in energy prices has cost New Mexicans, Ismael Torres of the Legislative Finance Committee says “the average household pays $750 more every month to cover the extras costs for groceries and gas, with one lawmaker saying it’s especially hurting low-income families.”

The next Gov. won’t take office until January. Regardless of what happens with the situation in Iran, it is high time for New Mexicans to see some relief. If you agree, send a message to the Gov. today asking her to hold a one issue special session to return that $850 million to New Mexicans! GOP candidate for Gov. Gregg Hull should echo this call for a special session to return this $850 million to everyday New Mexicans!

Tipping Point NM episode 819: Iran War and Oil Prices, MLG Wins at Appeal Court, Social Security to Become Insolvent by 2032, SpaceX and more

06.17.2026

Trump and Iran have agreed to end the Iran War.  Is it real this time? What will it do to oil prices? What are the benefits and drawbacks of cheaper gasoline?

Appeals Court Judge Elaine Lujan rules “free childcare” adopted by MLG on her own without legislative approval is fine. 

The national group Independent Women’s Forum launches an ad campaign on NM schools.

The Social Security retirement fund is projected to become insolvent by 2032. This will trigger an automatic, across-the-board benefit cut of roughly 22% for all retirees unless Congress acts.

Paul and Wally discuss interesting state by state data from Committee for a Responsible Federal Budget.

Space X had an initial public offering and Elon Musk is now said to be a “trillionaire.” What does it mean? Are the lefties correct that this is bad?

RGF is hosting an America 250 event with Timothy Sandefur. 

RGF on the road/post mortem on ABQ City Council victory

06.17.2026

This post will be a  lot less policy oriented than normal. That’s because as the head of RGF, this week has been VERY busy. It started with a HUGE win at ABQ City Council on Monday night when on a 5-4 vote Council (again) rejected a major tax increase. The vote was 5-4 against raising taxes with conservative Councilors Lewis, Champine, and Grout being joined by progressives Fiebelkorn and Telles to kill the tax hike scheme and NOT put it on the ballot.

Many news reports have covered this victory, but what is truly noteworthy is that for the first time I can remember opponents of the tax increase massively outnumbered supporters. RGF has been working closely with the revitalized Americans for Prosperity chapter (click to find out more or sign up with them). RGF has helped train their volunteers on how to participate in Council meetings and the AFP team has been highly effective at getting them organized to the point that the vast majority of comments at Council were against the tax hike. We cannot be more excited to have such effective grassroots partners and especially wish to call out Bobbi Curtis with AFP for her work in helping to organize activists to defeat the tax hike.

Unfortunately, we were unable to post much information about this huge victory, because the morning AFTER the meeting RGF’s president hit the road for series of events in Roswell, Artesia, Carlsbad, and Clovis over the span of the next few days. It has been a busy (and hot) few days but it is always good to see the great people of SE New Mexico and see where the State’s money comes from (Lea and Eddy Counties). It has been a very busy (and productive) road trip.

 

Opinion piece: Report on economic development incentives is incomplete

06.15.2026

The following appeared in the Santa Fe New Mexican on June 6, 2026. It appeared in other papers across the state.

Recently the Legislative Finance Committee produced a report in which (to summarize the findings) they made the case that New Mexico “spends” over half-a-billion dollars on tax breaks that generated little economic return for New Mexico.

The report had many important findings that should certainly influence the way our Legislature and next governor look at economic development, but I believe there are also some issues with the report that need to be addressed and even corrected.

The problems start with its opening line “In FY25, New Mexico spent $520 million on 24 economic development tax expenditures.” Simply put, most tax incentives are not spending. Rather they are reductions or the elimination of taxes that might otherwise be collected but aren’t. Things like the high-wage jobs tax credit and jet fuel deduction, both of which are mentioned in the report, may or may not be good policy, but they aren’t spending.

Film subsidies and the Local Economic Development Act, on the other hand, are spending. Why are these to be treated differently? Simply put, exempting a specific business activity from taxation (say a gross receipts tax credit) leaves numerous other taxes to be paid (income, property, etc.). Funds are not required from the state treasury, and the business still generates revenue for state and local government.

In the case of New Mexico’s film subsidy, which pays Hollywood up to 40% of the cost of filming here, those are payments from the state’s treasury to private businesses. Other businesses and people must generate enough money for the state to then hand it over to the film company.

The LFC has criticized (rightly) film subsidies for their poor rate of return. As a starting point, both the Legislature and the LFC should distinguish between tax credits or exemptions and outright spending (and work to eliminate the latter).

What about those tax credits? It’s not that Rio Grande Foundation is a cheerleader for them. We agree with the LFC insofar as they are economically inefficient and a generally poor way for New Mexico to attract businesses and boost economic growth.

Rather than narrowly targeted incentives, the Legislature and next governor should focus on broad-based tax reforms like transforming the GRT into more of a sales tax. The Legislature should also consider phasing out the state’s personal and corporate income taxes over time. Those steps alone would lead New Mexico to far greater growth than the state has seen.

Another point of contention in the LFC report that needs to be clarified is the seeming assertion that tax incentives should “pay for themselves” or not reduce government revenue. That is simply not realistic. Nearly all tax cuts or credits result in a short-term reduction in government tax revenues.

But New Mexico remains awash in revenue from the oil and gas industry. Policymakers have increased general fund spending by 75% during Lujan Grisham’s time in office. They have also poured money into the state’s permanent funds which are now valued at more than $70 billion.

Broad-based tax reform along with a few narrowly targeted tax credits can help New Mexico diversify and grow New Mexico’s economy. They can also diversify it away from overdependence on oil and gas.

These pro-growth tax policies, hopefully in concert with other economic reforms, will make New Mexico a more attractive destination for people and businesses. This will lead to economic growth and will help us keep more of our human capital at home rather than seeing it flee to other states as has happened for many years.

The LFC does a lot of great work. We understand the political difficulty of advocating for broad-based free market reforms when their budget relies on appropriations from a very “progressive” legislature. The Rio Grande Foundation does not face that problem and can highlight both the LFC’s work and shortcomings in their approach to better economic development policy.

Paul Gessing is president of the Rio Grande Foundation, an Albuquerque-based think tank.

We’re splitting hairs here, but believe NM is REALLY 50th in Kids Count

06.10.2026

Take a close look at the following. It is directly from the 37th page of the 2026 Kids Count report. Notably, Mississippi is said to have finished 50th while New Mexico ranked 49th.

We realize that neither state is likely happy about being at the bottom of this report, but take a look at the rankings among each of the four categories. You’ll find that New Mexico’s numbers are:

47, 50, 41, 50. That’s an average ranking of 47th

For Mississippi which finished 50th overall, their numbers are:

49, 16, 50, 49. That’s an average ranking of 41st

So, would you rather be New Mexico with no “good” scores at all with massive oil and gas revenues, but no idea how to use them to improve outcomes? Or, would you rather be Mississippi which has made great strides in one (arguably the most) significant area of education? Notably, New Mexico got the lowest numerical score possible in education, 1 of a possible 1,000 points. Not to mention the fact that overall Mississippi’s average ranking is far better than New Mexico’s? Now, RGF has no doubt that New Mexico’s weather and oil and gas revenues COULD be used to quickly improve the State in ways that Mississippi could only dream of, but the question is about government policies and childhood poverty, not POTENTIAL which New Mexico has in abundance.

Albuquerque City Council eyes a big tax hike to pay for over-budget swimming pool: vote Monday night

06.09.2026

After having initially rejected a proposal could increase the GRT rate by 0.4875%  bringing the total rate up to a little more than 8.113% percent, the City of Albuquerque on Monday, June 15, is expected to vote on that increase AGAIN, but the question will be whether to put it on the ballot. The increase could generate $113 million annually in added revenue for the City, costing local residents more every time they make a purchase.

The hike is unfortunately being once again proposed by Councilor Brook Bassan who seems hellbent on obtaining more money for the swimming pool at North Domingo Baca Aquatic Center which has suffered from an original cost of $17 million,  an estimated current cost of more than $70 million. According to Bassan the City needs an estimated $36 million to finish the project.

We working to push ABQ City Council to oppose this tax increase and we need your help.

It is completely crazy to even ask voters to pass a $113 million tax increase to fund a swimming pool that needs “just” $36 million to be completed. Voters in Albuquerque would ALSO be crazy for embracing this unnecessary tax in November, but they shouldn’t even be asked. This swimming pool project is a disaster. Cost overruns of this size are completely unacceptable and quite frankly should be illegal.

UPDATE: You can help us fight back! RGF president Paul Gessing will be leading a training session for citizen activists with our friends at Americans for Prosperity to push back against this tax hike.

Details below:

📅 Friday, June 12

⏰ 11:00 AM

📍 3339 Central Ave NE

🍽️ Lunch provided

🚗 Free parking on surrounding side streets. Metered parking is available on Central and in the parking garage beneath the AFP building.

Join your fellow concerned citizens and Americans for Prosperity (AFP) and Libre to learn how to:

✅ Sign up to speak at City Council meetings

✅ Build effective testimony

✅ Understand City Council meeting decorum

✅ Learn the facts about the proposed GRT increase and its impact on Albuquerque families.

💪 We cannot afford to sit this one out. AFP and Libre will equip, train, and empower you to confidently speak up before City Council decides whether this tax increase moves forward to the ballot.

📢 The people who support this tax increase will be there. The question is: Will the people who will pay it be there too?

Please RSVP to Bobbi Curtis of AFP at 505-385-5565 if you plan to attend. You can reach her at:

We look forward to seeing you there!

 

New Mexico rises slightly to 49th in annual Kids Count report

06.08.2026

In what can only be described as a “nothingburger,” in the last year of Michelle Lujan Grisham’s time as governor of New Mexico, the annual Annie E. Casey Kids Count report finds New Mexico ranked 49th overall. New Mexico beat out Mississippi this year.

In terms of Economy, New Mexico ranked 47th, Education: 50th, Health 41st, and Family & Community 50th.

This is “more of the same” for New Mexico which has lagged the nation in this (and other) reports for years. It is impossible to see any sustained improvement despite New Mexico having benefited from tens-of-billions in new revenue from oil and gas and numerous new/expanded government programs including universal “free” pre-K, “free” college, massive new K-12 education spending, and a 75% increase in state general fund spending. “Free” childcare is too new and thus wouldn’t be included in this report.

The upshot is that amazingly Gov. Lujan Grisham and the Legislature have squandered tens-of-billions of dollars over her eight years in office in the midst of one of the greatest oil and gas booms in history with little to show for it in terms of better outcomes for New Mexico children. The Rio Grande Foundation has argued that free market tax reductions as well as regulatory and education reforms would have a much greater impact on New Mexicans and their children. Instead, the massive growth of government has failed to improve the lives of New Mexico children.

 

New Mexico experiencing $850 million windfall from elevated oil prices…just don’t expect to get any of it back

06.08.2026

According to numerous news reports (this one from KRQE 13) in large part due to the war in Iran, New Mexico is experiencing yet another windfall from oil and gas. Estimates are currently that New Mexico has received an estimated $850 million (above and beyond the billions it receives from oil and gas every year). Of course, that money has to come from somewhere and New Mexicans (along with everyone else) are paying more at the pump.  LFC analyst Ismael Torres says the average household pays $750 more every month to cover the extras costs for groceries and gas.

But, don’t expect New Mexico’s “progressive” Legislature to return any of that money to taxpayers. Gov. Lujan Grisham has said nothing about a special session.  Representative Micaela Lara Cadena (D-Mesilla) made it clear that her intentions are to spend the money, saying “I hope we hold the purpose of those funds very close to heart and make sure when money comes to our coffers like that, we spend it and spend it well,”

The Rio Grande Foundation has long fought for tax cuts and broader tax reform, but even one-time rebates would be superior to more spending.

RGF heading to SE New Mexico soon

06.05.2026

Summer is for road trips even when gas prices are high. RGF is heading to Southeastern New Mexico for a series of talks in mid-June. One of those events will be a “Lunch and Learn” with the Artesia Chamber of Commerce on Tuesday, June 16. Details can be found below:

We have multiple other events coming up  while we’re in SE New Mexico.

MLG is proud of this?

06.05.2026

Gov. Lujan Grisham (via her X account) recently celebrated the fact that New Mexico had “risen to 20th in higher education.” Sadly, but as per the usual, the Gov. did not include a source for the information. So, we went and found it: US News & World Report: Best States for Higher Education 2025. You can see the screenshot below and below that the original Tweet from MLG. So, MLG is touting being ranked 20th in higher education, but the SAME report highlights that New Mexico is ranked:

47th overall;

50th in education;

49th in college graduation rate

So yay! Spending lots of oil and gas generated tax dollars on “free” college has helped us move up somewhat in higher education rankings. But, NM isn’t exactly knocking it out of the park overall after 8 years of her being in office.

 

 

Tipping Point NM episode 816 Anastasia Boden – Legal Issues and U.S. Supreme Court

06.05.2026

On this week’s interview Paul sits down with Anastasia Boden.  Boden is Director of Constitutional Scholarship at Pacific Legal Foundation, a non-profit law firm.  Anastasia recently spoke at an RGF luncheon on the US Supreme Court’s upcoming decisions. She recently launched a new podcast called “In Dissent.” Paul and Anastasia discuss some important dissents offered by the Court as well as some of the Court’s most recent decisions and the Court’s relationship with President Trump. Check out this important conversation!

ABQ West Side Solar Project Looking for $1.2 billion in tax abatements

06.04.2026

Just a few weeks after the Legislative Finance Committee of New Mexico’s Legislature stated that “More than half-billion in tax breaks generated little economic return for New Mexico,” Bernalillo County Commission is contemplating a $1.2 billion tax abatement (IRB) for a massive solar facility to be built on Albuquerque’s West Side. More details from the Albuquerque Journal here.

There are MANY reasons to oppose this plan. Here are some:

    1. The article does not mention it, but it is estimated that a 400MW solar farm would consume between 1,600 and 2,000 acres of land. Considering that the site is near the Interstate (I-40) and Atrisco Vista, it would seem that there are better uses for land so close to Albuquerque. That’s 2.5 to 3.1 square miles. In familiar terms, this is equal to about 1,200 to 1,500 American football fields, or slightly larger than the size of Central Park in New York City;
    2. The project will create just six full-time jobs — four operators and two electricians. So, this is a lot of money and land for a project with nearly no economic impact;
    3. The article states that PNM is the likely purchaser of the power. PNM is legally mandated under the Energy Transition Act to fulfill MLG’s “transition” to 100% renewables. Why are we shifting the burden of this to New Mexico taxpayers?

You can reach out to the Bernalillo County Commission here: commission@bernco.gov

Tipping Point NM episode 815: ABQ’s Minimum Wage, Guaranteed Basic Income, SPEED Act and more

06.03.2026

Albuquerque City Council votes to raise the City’s minimum wage albeit over three years to $15 an hour instead of right away. Paul and Wally also critique a video put out by Mayor Keller on the issue.

Paul and Wally handicap the Republican and Democrat primaries for governor.

In a bizarre comment MLG tells a group at a public speech that “Democrats don’t need men’s votes”

ABQ claims the “guaranteed basic income” is a success. What’s the real story?

NM’s Supreme Court recently ruled that APS had to disclose a big payout to a former superintendent.

What’s the federal SPEED Act & why would it be a win for both left and right?

Paul was recently on another podcast discussing data centers.

New Mexico’s teacher unions are 20th-strongest among US states. Why? What does this mean?

This week’s episode had to be split into two parts for technical reasons.

An update from ABQ City Council: minimum wage going up, and taxes too?

06.02.2026

The Rio Grande Foundation pushed back last night against a hike in the minimum wage, but with 5 councilors going into the meeting broadly supportive of raising Albuquerque’s minimum wage to $15 an hour, it is hardly a surprise that something passed. Here are the details:

  • Rather than going into effect starting in 2027 the $15 an hour wage will be phased in over three years starting in 2027. Not great, but better than the alternative.
  • After 2030 the minimum wage will be tied to the Consumer Price Index (not the hybrid rate including rental prices).

This couldn’t be considered a win, but it is not as bad of a loss as it could have been. But, the die was cast in the last mayoral election. Reelecting Mayor Keller (who pushed the minimum wage hike) and the replacement of a conservative Democrat Louie Sanchez with a far-left Democrat Stephanie Tellez was enough to set the stage for a lot of bad policy.

Now, it looks like Councilor Brook Bassan is going to reintroduce a regressive gross receipts tax at Council. If passed, the proposal could increase the GRT rate by 0.4875% putting the rate above 8% costing taxpayers $113 million annually. The big change to this proposal is that unlike the last version, voters will have to sign off on this one. That means it requires only five votes to pass the council, instead of seven. The current total tax rate in Albuquerque is 7.625% in the City meaning the tax hike would take the City to 8.113 percent. Neighboring Rio Rancho which also has substantially lower property taxes has a 7.4375% GRT.

Bassan’s primary impetus seems to be to fund the vastly overbudget North Domingo Baca swimming pool (located in Bassan’s district), the cost of which has risen from $17 million to over $70 million. 

To her credit Councilor Tammy Fiebelkorn, who introduced several amendments to the original proposal before it was ultimately voted down, told KRQE News 13 on Monday, “If it’s still using increased regressive taxes to pay for vanity projects, I’ll oppose.”

New Mexico Chamber report provides solid ideas for improving NM’s economy

06.02.2026

The New Mexico Chamber of Commerce recently produced a report that makes an important contribution to the State’s economic development conversation. While RGF and the various chambers of commerce aren’t  always on the same page and this report is obviously not the kind of report RGF would come up with, the primary findings about what ails New Mexico are in lockstep with us. Before getting to that, what we mean is that the Chamber focuses heavily on attracting specific industries to New Mexico. Those are:

Quantum and Advanced Computing,
Intelligent Manufacturing,
Advanced Energy, and
Space, Aerospace, and Defense.

These are fine industries, but as we have seen with Spaceport America, it isn’t easy to predict “the next big thing.”

The report’s critical findings start on page 63. Again, you can download it here. The section is entitled: FACTORS IMPACTING NEW MEXICO’S COMPETITIVENESS. While there are some positives, the negatives include things that RGF has worked on extensively:

Lagging Workforce Participation and Population Growth: At 57.7 percent, New Mexico’s labor force participation rate is in the bottom 10 among all states. Compounding this, its
population has grown by only 0.5 percent since 2020, far behind the national rate of 2.6 percent, limiting the available talent pool.

Deficient K-12 Educational Outcomes: U.S. News & World Report ranked New Mexico last among all states for PreK-12 education. This is driven by low college readiness, poor math
and reading scores, and a high school graduation rate of 78.05 percent—nearly nine percentage points below the U.S. average.

High Crime Rates: Public safety remains a major concern. The state had the second highest rate of violent crime and the highest rate of property crime in the nation,
impacting both quality of life and the ability to attract talent.

Challenging Business and Regulatory Climate: The state ranks 44th overall in CNBC’s “Top States for Business,” with a particularly low rank for Access to Capital (46th).
Stakeholders consistently cite uncertain regulatory processes and a sales tax structure that resembles a gross receipts tax as significant impediments.

Infrastructure Deficits: New Mexico ranks 42nd overall for infrastructure, according to U.S. News. Challenges include limited broadband access, worsening housing affordability,
and a road infrastructure system ranked 48th in the nation.

There’s a lot to the report. It is a worthwhile read for policymakers or anyone who cares about turning around our beautiful but troubled state.

Albuquerque’s “Universal Basic Income” success is meaningless

06.01.2026

After a year of handing $750 monthly checks to low income and other struggling residents of Albuquerque, the Journal reports that ” young adults and teenagers have reported more savings in the bank and food in the pantry.”

This may be the least surprising finding in the history of economics, but it is utterly meaningless as public policy. You see, for a year Albuquerque has been handing $750 checks out to families and struggling teens. The money is from taxes collected on sales of marijuana and totals about $1 million annually.

The problem is that while a “free” $9,000 a year is beneficial to those who receive it, the idea of a “Universal Basic Income” is to replace government welfare programs with cash payments. It is something that many free market advocates have supported over the years. But, that’s obviously NOT what is happening here.

This program wouldn’t exist if marijuana hadn’t been legalized and taxed (suddenly creating a new pot of money). In fact, we’d go so far to agree that handing cash out to people is BETTER public policy than 90% of what government does with its welfare programs.

Finally, and most critically, the “pot” of money from legalized weed is relatively small. Are politicians going to impose new economically-harmful taxes to then hand out the money or are they going to reduce other government benefits and redirect it to cash payments (the better option).

We discussed the prospects for this program here over a year ago as the program got started. Also, there is no detail provided about the teen recipients staying in school as opposed to dropping out which was originally touted.

Mayor Keller’s non-sensical minimum wage video

06.01.2026

In his push for a shift in the local minimum wage from $12 to $15 an hour (and index the wage to inflation and apartment values) Albuquerque Mayor Tim Keller made a video. Not surprisingly, it relies on numerous economic fallacies and misguided economics. Here’s our response to the Mayor:

  1. The Mayor claims that raising the minimum wage “much.” The reality is that businesses don’t simply deal with minimum wage increases by raising prices. In California which imposed a $20 minimum wage on the fast food industry prices increased by 8-12%. Instead, they do a combination of things as was discussed in a recent UC Santa Cruz report businesses raised prices, reduced hiring (between 12 and 21% according to the California report), and automated. Not surprisingly businesses attempted to minimize the negative impact of an artificial minimum wage hike in a variety of ways.
  2. Raising the minimum wage provides more stability and spending money: If raising the minimum wage had no negative impact why stop at $15 an hour? If it’s all “gravy” why not go with a $25 an hour wage?
  3. Keller claims that “he doesn’t think politicians should set minimum wages.” We agree with that, but find it weird because Keller is actually the one pushing this issue at City Council.

 

RGF President discusses AI data centers on “Powering America” podcast

05.29.2026

In the latest episode of the Powering America Podcast, Paul Gessing, president of the Rio Grande Foundation, discusses data centers and energy policy in New Mexico. Gessing highlights the state’s potential for data center development due to its natural resources and stable environment, while also addressing the challenges posed by political opposition and environmental concerns. The conversation touches on the impact of energy policies, including the Energy Transition Act, and the role of water resources in supporting data center operations.

Data centers are a hot topic all over America. New Mexico (a blue state) has some unique political forces currently driving the debate. Check out this important conversation here.