The Biden Energy Department has named a total of 7 so-called “hydrogen hubs” which will split a total of $7 billion in federal funding to “accelerate the commercial-scale deployment of hydrogen infrastructure.

The Rio Grande Foundation is agnostic on hydrogen as a technology although we are certainly not excited about $7 billion in federal spending for it. Somewhat surprisingly, despite New Mexico’s oil and gas infrastructure and resources combined with “blue state” politics (including Governor and its entire Congressional delegation), the Biden Administration did not award one of its hubs to New Mexico.

Rio Grande Foundation has committed itself to opposing the Gov’s attempt to eliminate gas vehicles in New Mexico. We need New Mexicans from all over the state to send a message to the Environmental Improvement Board through our website: KeepYourCarsNM.com.

Please take a minute or two to go to KeepYourCarsNM to join us in pushing back against the Gov.’s latest overreach. Please share this information with at least FIVE New Mexico friends! Together, we can defeat MLG.

Paul talks energy policy and its impacts with Kathleen Sgamma of the Western Energy Alliance.

The impact of the Middle East war on energy prices.

Kathleen Sgamma sets the record straight in a House of Representatives hearing.

The impact of Biden administration policies on energy in New Mexico and nationwide.

Conflict issues related to Secretary Deb Haaland’s daughter and her political activities.

Access to oil and gas under attack on federal and state lands in New Mexico.

The problems being created by the rapid push for electric vehicles.

New Mexico Gov. Michelle Lujan Grisham continues to push her mandate which would force New Mexicans to buy electric vehicles. But, that effort at odds with new polling just published by Yahoo Finance. You can explore the results below, but 57 percent of Americans expressed an aversion to buying an EV in the near future. That compares to about 31 percent who are likely. or somewhat likely to buy one.

According to the article associated with the, “70% of those over the age of 65 would not (buy an EV), along with 60% of respondents that had an annual income below $50,000. The elderly and low-income are two large groups in New Mexico meaning that EV’s are likely even less popular here than in some other states.

You can submit comments on the EIB’s proposed mandates directly to the EIB through: pamela.jones@state.nm.us

Even in stories that aren’t technically about New Mexico our State’s education policy failures are highlighted for all to see. The chart below is from the New York Times Morning Update. The story actually highlights the success of schools managed by the Department of Defense.

There are a few pertinent quotes from the article that are worthwhile:

Perhaps the most important lesson is that the schools are excelling not by discovering some new secret about education. They are doing what decades of research has suggested is successful.

Consistent with military culture, they set high standards and create a disciplined classroom culture.

During the pandemic, the military’s schools reopened relatively quickly — and it’s clear that extended closures were terrible for children.

More of their families have two married parents than is the case nationwide. By definition, at least one parent in each military family is employed.

With few exceptions Democrats have controlled New Mexico politics since 1930. It is therefore rather ironic to see the following opinion piece from Democrat Sen. Bill Tallman. In the article he decries the State’s (read his party’s) lack of “strategic planning.”

I provide a few of HIS bullet points and briefly discuss them:

• Replace oil and gas revenues: While Tallman cites a study claiming that revenues from oil and gas will start to decline after 2030 that remains to be seen. The New Mexico Legislature SHOULD work to diversify the economy and the Rio Grande Foundation has plenty of ideas for that, but neither Tallman nor his Party have expressed any interest. Worse, we have been in an oil and gas boom for several years and have almost nothing to show for it.
• Education: Tallman argues that education reforms are implemented in a “piecemeal fashion.” Of course our panelists at the recent OAKNM education conference have put forth numerous ideas (private choice and Mississippi’s model) with no interest expressed by Democrats in the Legislature (with a few tiny exceptions).
• Capital outlay: Tallman is spot-on here. New Mexico’s capital outlay process is a total disaster and driven by no data or even needs-based assessments. Again, Tallman’s own Democratic Party controls Santa Fe. Why not put forth a detailed reform agenda?

We commented on a recent by New Mexico’s Legislative Finance Committee that considered problems with the State’s economy. One of the problems we face is the quality of our workforce.

Sadly, costly initiatives like “free” college are not likely to succeed in improving New Mexico’s workforce because we lose so many college graduates (on net). As the map below highlights New Mexico lost 24% more college graduates than it attracted in 2021. You can see the full story and interactive map at KRQE Channel 13’s excellent report on the LFC report.

Even before the Gov. instituted “free” college New Mexico was among the biggest-spending states on higher education with little to show for it.

New Mexico remains in them middle of its largest budget boom ever thanks to record oil and gas production and revenues. And, according to a new article in the Santa Fe New Mexican the appetite for bigger government shows no sign of being satiated.

Agencies representing about 44% of the state’s general fund spending are requesting an additional $890 million for fiscal year 2025, an average increase of 20.5%, according to a recent report by the Legislative Finance Committee.

The story went on to quote Senate Finance Committee Chair George Muñoz as saying, “My cautionary tale is we’ve had humongous increases, almost doubling the budget 15 to 20% a year for the last couple of years, and it’s unsustainable from here forward.”

As Gov. Lujan Grisham’s plans to have her appointed Environmental Improvement Board issue regulation that would force vastly increased numbers of electric vehicles on New Mexicans, it is worth remembering that EV’s also rely on traditional fossil fuels.

Curiously, as this and other news stories reported recently, the world’s largest EV charging station (Harris Ranch which is based in California and sports 98 bays) is fueled by diesel generators.

According to one of numerous articles about the Harris Ranch facility, “Superchargers charge vehicles up to the 80% sweet spot in as little as 20 minutes, but to provide that kind of power for nearly 100 bays takes something solar can’t provide — diesel generators.”

You can submit comments on the EIB’s proposed mandates directly to the EIB through: pamela.jones@state.nm.us

The ABQ Journal had an excellent opinion piece by former Rio Grande Sun editor Robert Trapp (no conservative) decrying the Gov.’s proposed mandates on his community.

Former collegiate swimmer and activist for keeping women’s sports exclusive to women Riley Gaines was in Albuquerque to speak to a group sponsored through University of New Mexico (the talk was actually held at Kiva Auditorium downtown.

Sadly, as the tweet below from Ms.  Gaines notes, the University has asked her to pay $10,000 due to the high level of police presence needed to control the leftist protestors. A follow up conversation with a media outlet that questioned the University on the matter resulted in the claim that the price tag would be less than $10,000.

It doesn’t matter. Conservative speakers cannot be held to a different standard than their leftist counterparts because those same leftists represent. a violent threat to anyone who counters their radical ideology.

Sadly, NMSU was recently pressured by radical left-wing politicians to NOT host conservative speakers.

The Rio Grande Foundation has long opposed New Mexico’s film subsidies, so it was highly gratifying to have our perspective backed up by the Legislative Finance Committee’s report which found the subsidies to be ineffective at fostering economic growth.

KOAT Channel 7 did a story on the issue and gave RGF the best opportunity to explain some of the problems with New Mexico’s generous film subsidies we’ve ever had. Check it out here or below:

On this week’s interview Paul interviews Carol Wight of the New Mexico Restaurant Association and the local HELP coalition regarding HELP’s efforts in this fall’s local elections. Paul and Carol discuss the political dynamic in Albuquerque and previous (successful) efforts by HELP to transform City Council in a more positive direction. What are their past accomplishments? What needs to be done still?

Who are the candidates up for election this fall and when does early voting start?

Fresh off publication of an excellent report trashing New Mexico’s film subsidies the Legislative Finance Committee has produced a new report looking at the issue of New Mexico’s low workforce participation rate.

Here is one of many choice quotes analyzing the problem (which reflects RGF’s work on the issue):

While unemployment rates have recovered to pre-pandemic levels, the share of the state’s working age population participating in the labor force is persistently low. Social services, economic development, tax rates, pension systems, the service industry, and virtually every other area of the economy is impacted when there are fewer people working to support those who do not work.

While the report further (correctly) notes that “misalignment between the state’s workforce skills and industry is a challenge for New Mexico’s
economic future,” the report focuses most of its attention on job training programs and other economic development incentives.

Sadly, some of the fundamental issues facing New Mexico’s workforce are not contemplated in the report. These include:

1. Our failing education and the need for dramatic reforms that might include everything from Arizona-style education savings accounts to improved charter school laws to simply embracing Mississippi’s approach to reading. Having students prepared to enter the workforce is vastly better than having an unprepared workforce or having to “backfill” through programs like JTIP.
2. New Mexico should generally move away from targeted economic development programs from LEDA and JTIP and focus on basic reforms like GRT reform/reduction, income tax reduction, and regulatory reform.
3. Notably, the State’s massive investment in “free” college does NOT appear to be a central focus of the report in terms of improving the match between workers and the workforce.
4. Also left out of the report is the generosity of New Mexico’s welfare programs. Providing money to people in lieu of work is a great way to keep people out of the workforce. We. recommend the LFC take a closer look at ways the State can reform its approach to welfare programs in an effort to boost workforce participation.

We have written extensively in this space about MLG’s efforts to get rid of gas vehicles in New Mexico. Sadly (but not surprisingly) the Biden Administration is pushing regulations to do the same thing.

Under the latest regulatory push,  new autos sold in the United States would achieve an average fuel economy of 58 miles per gallon by 2032.  In order for automakers to achieve that average, about two-thirds of the new cars they sell by that year would have to be all-electric.

Comments are due by October 16, 2023. If you are inclined to comment, you can do so here. 

RGF has commented in opposition. You can read those by applying the comment tracking number below here. We have listed some of the major flaws with EV’s here. 

Comment Tracking Number: lnc-aod7-06pz

On this week’s show Paul and Wally discuss a few big and important topics of long-standing interest to RGF.

MLG’s Construction Industries Division is planning to implement a new EV charging station mandate that will have negative impacts on apartment developers and commercial real estate alike. The ABQ Journal has an excellent editorial and opinion piece.

A new LFC report trashes New Mexico’s film subsidy program.

Over the next month Mayor Keller will be attempting to push a lease for the United Stadium through City Council. There are real issues with the proposal as it stands now.

New Mexico is in the midst of an unprecedented oil and gas boom. Sadly, you wouldn’t know it from looking at the State’s economic policies or data. You also couldn’t tell from visiting its major cities where homelessness and crime run rampant and the economy remains dependent on federal spending and oil revenues.

According to Bureau of Economic Analysis data compiled by the Committee to Unleash Prosperity,  during 2022 New Mexicans experienced personal income growth that was slower than the national average in 2022. Pro-growth tax reforms like those enacted under the late Bill Richardson helped increase personal incomes in New Mexico. Sadly, even with a flood of oil revenue the Legislature and Gov. seem unwilling or unable to grasp the need for tax reform and reduction.

New Mexico personal incomes are among the very lowest in the United States, so there is plenty of room for improvement, but that requires better policies.

The following article appeared in several news outlets including the Las Cruces Sun News on September 28, 2023.

The idea of a “universal basic income” (UBI) has been around a long time. Most supporters are broadly on the left of the political spectrum,  but many conservative thought leaders including Charles Murray as well as Reagan officials like James Baker and George Schultz, have also been willing to consider the idea.

The idea behind UBI is simple: replace welfare payments to the poor with cash payments to empower the poor to manage their government benefits. Welfare programs have a bunch of hoops and phase-outs that can often disincentivize going from welfare to work. One problem with UBI (as other conservatives often point out) is that politicians are unwilling to eliminate the welfare programs and pay them out in a cash equivalent.

Sadly, this has proven out. In recent years there have been experiments, supposedly with UBI concepts, but they never actually result in replacement of welfare with cash. Instead, these approaches simply result in more cash. A 2021 Santa Fe program along those lines suffered the same flaw.

Now, Las Cruces has gotten into the mix. A privately funded guaranteed basic income project allocated 330 families $500 per month and ended in January. Results from the experiment haven’t been analyzed yet. Now, another experiment is going to happen. Thanks to $1.7 million dollars of federal American Rescue Plan Act funding, multiple nonprofits in the Las Cruces community will provide $500 monthly payments over 18 months to 150 eligible Las Cruces families.”

Will the results of these experiments mean anything? Sure, most people, especially those with low incomes, will gladly take an extra $500 annually, but unless the UBI is a replacement as opposed to a supplement for existing welfare programs it will be rather meaningless in terms of broader welfare reform implications.

Mayor Ken Miyagishima, a Democrat, appears to be the only voice of reason in Las Cruces. He voted against the program and said, “I hope it doesn’t just turn into, hey, I got this money, this is great. And okay, it ran out, so what am I going to do now?”

The Mayor elaborated, saying, “We don’t have the money…people need to have an understanding of what it takes to run a government.” “It (money) just doesn’t come out of thin air. The reason why we are seeing a lot of inflation is because the country has printed a lot of money and there’s nothing to back it up.”

Miyagishima is right. And, while New Mexico is currently in the midst of an unprecedented oil boom that has brought in staggering amounts of money, politicians in Washington have driven the nation into debt and the situation shows no sign of improving. While the inflation rate has gone down, that inflation is piled on top of last year’s inflation, so prices continue to rise at a staggering pace that is harming New Mexico families.

Rather than piling on more debt to find ways to add more people to already overburdened welfare rolls the Biden Administration and both parties in Congress should cut spending and work to eliminate the scourge of inflation from our economy. That will do more to get people out of poverty than any half-baked “basic income” scheme, especially one funded by taxpayers.

Paul Gessing is president of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility

Alan LaSeck of the New Mexico Apartments Association penned an excellent opinion piece in the ABQ Journal detailing how the Gov.’s proposed commercial development EV charger mandate will make Albuquerque’s housing crisis even worse than it currently is.

In addition the editorial board weighed in with an excellent editorial further highlighting the issue. New apartments, hotels, motels, vacation timeshare properties, monasteries, and dormitories would be required to install EV chargers for 20% of their parking spaces. In addition, 50% of parking spots would have to have the infrastructure to be EV capable, and 5% would have to be EV ready. No hearings have been scheduled so far regarding this regulation.

On the issue of EV’s, the New Mexico Environment Department and the city of Albuquerque will host an in-person meeting about the Governor’s proposed rules from 4:30 to 6:30 p.m. Oct. 16 in the Community Meeting Room at the International District Library, 7601 Central Ave NE. Those concerned about unfunded mandates and so-called “Environmental Justice Vehicle Values” should attend or send written comments to: https://nmed.commentinput.com/?id=TuMmsArBj

And, as usual cartoonist John Trever has a great commentary:

Several articles in the local media have discussed the broad details of a lease agreement between the United soccer team and Albuquerque Mayor Tim Keller. The lease is scheduled to to be introduced to the council today and heard on Oct. 16. While we have not seen the lease (yet) there are a few details contained in the article above.

However, the most important question for City Council is potential cost-overruns. Back in April the LFC reported that construction costs had DOUBLED within the past year. In November of 2021 when voters overwhelmingly rejected a taxpayer financed stadium the bond was going to be for $50 million. Estimates at the time were that the stadium would cost between $65 and $70 million in total.

Now, after a doubling of construction costs (according to the LFC) the agreement is for the team to put up $30 million and the City to put up $13.5 million in state capital outlay dollars for a total of $43.5 million?

Either Keller and the team are “low-balling” their cost estimates or promoting a stadium that is so “bare bones” that it won’t be long before the team is asking for new features. WHO PAYS FOR THEM?

City Council MUST clearly spell out in the lease that ANY cost overruns and future additions be paid for by the United.

The Rio Grande Foundation has long been critical of New Mexico’s film subsidy program, but study after study (at least when they have been objective) have found the film subsidy program to be wasteful and an economic loser.

A brand new report from New Mexico’s Legislative Finance Committee only further buttresses the Foundation’s arguments. Here are a few items from the report which summarize its findings:

• Evidence suggests film incentives are less effective at attracting private investment, cost more per job, and have a lower return on investment than other incentive programs.
• (Film subsidies) cost more than twice as much per job as the other large economic development incentives.
• Most state evaluations find film incentives have a negative fiscal ROI.
• In the next five years, film subsidies paid out could grow by 171 percent, increasing from $100.2 million in FY23 to $272.1 million by FY28.

The film program is costly and is the very worst form of corporate welfare. It is great to see the LFC saying what RGF has been arguing for more than a decade.

Image below is courtesy KRQE Channel 13.

On this week’s interview Paul talks to Pete Dinelli. Dinelli has a long track record of public service. He’s an unapologetic progressive Democrat and blogs at: https://www.petedinelli.com/

According to the education website Schoolaroo New Mexico has achieved yet another unenviable dead-last position in education.

Being in dead-last has become typical under Gov. Lujan Grisham who has pumped money into education while not reforming the system and closing New Mexico schools for over a year during COVID.

What is unknown is how various states administer the test and to whom and how those factors might affect New Mexico scores relative to students in other states.

Perhaps even more concerning is the fact that New Mexico’s applicants have fallen four positions in comparison to the previous year, now ranking at the bottom with a total average score of 953.

Paul is in Savannah, Georgia. He discusses what has brought him there. Paul also recaps the OAKNM education conference which took place on Friday.

The shooters who precipitated MLG’s anti-gun health order were captured. They have (not surprisingly) been involved with the criminal justice system in the past and were not likely to be deterred by MLG’s anti-gun orders.

A MLG-appointed New Mexico district judge rules that the homeless can’t be removed from public spaces.

How will MLG’s potential EV mandate actually be enforced? Paul has a detailed answer.

Interior Secretary Deb Haaland’s daughter has close ties to the Cuban government. This is especially concerning because hostile foreign nations have a long track record of supporting anti-energy forces in the US.

Our op-ed on MLG’s gun order and her long-standing disdain for “democracy” ran statewide.