Errors of Enchantment

You may have heard that our former friends at the Cato Institute (just kidding, Ed) have gushed over Big Bill’s tax cutting and spending restraint. According to Cato’s report card for the governors, “Bill Richardson is, bar none, the best new Democratic governor in the nation–for that matter, he is one of the best new governors of any party.”
But Cato is wrong. The Guv is a net tax increaser and his spending has far exceeded the rate of inflation plus population growth. How did they get it wrong?
On the spending side they used bad data (National Association of State Budget Officers). If you would like to see the truth look here. And the general fund budget is going to grow as least another 6.7% in Fiscal Year 2006. Some spending restraint!
On the tax side they completely missed the stealth increase in the gross receipts tax rate. They also missed other tax and fee increases.
Why is our tax and spend governor getting a free pass from the media and now from one of the best think tanks on the planet?

Did you see John’s thoughtful opinion piece in Friday’s Albuquerque Journal (subscription)? “The Valle Vidal is a beautiful section of the Carson National Forest. Substantial natural gas production is being obtained from the adjacent and possibly more beautiful Vermejo Park Ranch. It is believed similar production could be obtained from Valle Vidal.”
Why is it that production, such as drilling for oil or gas, seems easily to coexist with “environmental” uses of land in some cases but not in others? The answer lies in who owns the land. When it is owned privately, its owner has incentive to evaluate production-environmental trade offs. The owner does not want to take excessive risk that the land might be spoiled. The owner simply wants to make best use of the land for its value in the enjoyment of natural beauty, its value in energy production and the threat to its value from environmental harm.
When land is owned by the government, however, these tradeoffs are politicized. Environmental interest groups such as the Sierra Club seem totally unwilling to consider alternative uses or magnitude of risk from environmental harm. These same groups permit production on land when they actually own it.
If you are interested in how ownership incentives improve the natural beauty and enjoyment of land while permitting alternative uses and improving the environment look here or here. Look here for an innovative public land management idea being tried in the Land of Enchantment!

“Things that can’t go on forever, won’t.” Unfortunately, the Guv wants more of the same: “‘We’re talking about people (being hurt by the cuts),’ Richardson said at a news conference at the National Press Club. ‘We’re talking about human beings who are the most vulnerable.'”
I wish he would think about the perverse incentives of Medicaid. Why can’t we give these human beings incentive to help themselves? Why does he insist on such inefficient government intervention?

Did you notice from this story (subscription) in yesterday’s Albuquerque Journal that Department of Economic Development Staffers are prohibited from visiting the Roundhouse during the session? “Secretary Rick Homans said the intent of the directive was to ‘make sure we don’t start getting our wires crossed. We don’t think legislators like it when they see a lot of state employees hanging around the Roundhouse.’ He also said the governor’s office ‘has been very clear about us being very disciplined in how we communicate with the Legislature.'”
This is good political strategy for an administration that seems bent on dishing out political favors in the form of corporate welfare. Matt clarified some of the losses from the game of political favor seeking yesterday. You can expect more commentary on corporate welfare and seeking of political favors in the near future.