Errors of Enchantment

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Specific Ideas for Government Efficiency in NM

05.19.2010

Awhile back, Carter Bundy of AFSCME encouraged us at the Rio Grande Foundation to “Drop the rhetoric and join the real debate.” I responded, but there are so many ways to improve government efficiency by finding alternative ways to government employees that I felt the need to go back to the well to offer even more on the topic.

So, I wrote another article for NMPolitics.net on improving efficiency to the tune of 5 to 20 percent by opening up government services including trash collection, pothole repair, wastewater services, government buildings, golf course maintenance, parks and recreational maintenance, and even airport maintenance – to competitive bidding.

Of course, there is a right way and wrong way to create competition in government services, and I go into that in the article as well.

2010 Lights of Liberty Speaker, Honorees Announced!

05.18.2010
Deroy Murdock, one of America’s most prominent black libertarian writers will address the Rio Grande Foundation’s second annual “Lights of Liberty” luncheon on June 18, 2010. He is a sydicated columnist with the Scripps Howard News Service and a senior fellow with the Atlas Economic Research Foundation, a supporter of some 300 free-market think tanks in 100 countries world-wide.

Deroy Murdock is a syndicated columnist, with the Scripps Howard News Service and a Senior Fellow with the Atlas Economic Research Foundation, a supporter of some 300 free-market think tanks in 100 countries world-wide. 

Mr. Murdock’s column, “This Opinion Just In…” reaches approximately 400 newspapers across America each week, including the New York Post, The Washington Times, the Boston Herald, and The San Francisco Examiner. He is a frequent guest on CNBC, CNN, C-Span, Fox News Channel, MSNBC, and other TV and radio outlets. 

As a popular public speaker, he has lectured or debated at Boston College; the Cato Institute, the Council on Foreign Relations; Harvard Medical School, the Heritage Foundation; the National Academy of Sciences; Dartmouth, Stanford, and Tulane universities; and various forums from Bogota to Buenos Aires to Budapest.

He is a native of Los Angeles, a graduate of Georgetown University, and a resident of New York City, where he earned an MBA from New York University. His MBA program included a semester at the Chinese University of Hong Kong.

Murdock will be speaking on “Free Enterprise in the Age of Obama.”

Honorees at this year’s luncheon will include:

• Tina Carson and the board of the Albuquerque Tea Party for their activism on behalf of the principles of limited government in New Mexico;
Sen. Tim Keller (D) for his successful efforts to reform the State Investment Council; and
Sen. Sander Rue (R) for his successful efforts to pass legislation creating New Mexico’s “Sunshine Portal.”

The event will last from noon to 1pm and will be held at the Marriott Pyramid Hotel which is located at 5151 San Francisco Road NE in Albuquerque. Cost is $40 if paid by June 11, 2010; and after June 11, 2010, the price is $50. Checks can be mailed to the Rio Grande Foundation at PO Box 40336, Albuquerque, NM 87196; for online credit card payments: www.riograndefoundation.org/events.

New Jersey Gov. Christie: A Model for NM’s Next Governor

05.18.2010

The Republican candidates for governor of New Mexico are running a lot of ads and will soon be debating on May 27 on television. But, what I want to know is whether anyone running for Governor — yes, that includes Diane Denish who is running some conservative-sounding ads of her own — has the ability to stand up and fight for taxpayers in New Mexico.

Governor Christie of New Jersey has been a, perhaps THE, national leader in putting taxpayers first and going on the offensive to change a state’s culture of big government and waste. Check out this amazing video of Christie explaining to the media what this entails:

How Government Programs Expand Beyond Intent

05.17.2010

I noticed an article (based on this press release) in Sunday’s paper explaining that the US Department of Labor had approved Trade Adjustment Assistance benefits for workers who lost their jobs when Eclipse Aviation ceased operations back in 2008.

So, what’s the problem? First and foremost, the Trade Adjustment Assistance program is supposed to help those who lose their jobs as a result of free trade make the transition to other jobs. Few who followed Eclipse Aviation would place free trade among the culprits in causing Eclipse’s demise. The reality is, as the blog Eclipse Aviation Critic pointed out, the company could not ramp up production and profitability at a fast enough rate to avoid inevitable insolvency. This had absolutely nothing to do with the supposed “burden” of free trade.

The reality is that the Trade Adjustment Assistance program is unnecessary. Trade benefits us all through lower prices and better quality goods. And, of course, as Ronald Reagan once said, “No government ever voluntarily reduces itself in size. So, governments’ programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we’ll ever see on this earth.” Oh, and, government is very slow. While I’m sure there are still some Eclipse Aviation employees that were laid back in 2008 who are looking for jobs, if the government is going to “help” these people, wouldn’t that help have been more useful two years ago?

Stimulus Creates Few New Jobs in NM

05.17.2010

$2 billion awarded, an only 332 more stimulus-funded jobs since last quarter, and the state’s unemployment rate hits 9% according to U.S. Department of Labor.  All those “stimulus-funded jobs,” where are they?  Mostly state government.  We’ve simply switched out funding sources.  New report at New Mexico Watchdog.

What to make of Congressman Paul Ryan…

05.16.2010

Wisconsin Republican Congressman Paul Ryan has made something of a splash among fiscal conservatives with a plan to bring America’s fiscal picture back into balance. His plan, which has been embraced by many conservatives, but not necessarily most Republicans, is called “A Roadmap for America’s Future.” It is one of, if not the only serious, numbers on paper, ideas for pulling the US federal budget out of its current tailspin. It should be noted that Democrats haven’t put together a real plan for balancing America’s long-term budget either.

While Ryan’s efforts should be applauded by anyone concerned about America’s future, as Reason Magazine points out “Ryan voted in favor of the Troubled Asset Relief Program (TARP), the widely despised bank bailout. He also endorsed the taxpayer-funded auto bailout, citing ‘mounting hardships’ in a part of his state once dominated by carmakers. His ballyhooed spending plan is so incrementalist that it wouldn’t balance the budget until 2063. And this year, while defending his policies to The New York Times, the congressman declared, ‘I’m not trying to win an award from the Cato Institute.’”

With all that said, Ryan has at least started a debate with his “Roadmap.” If Republicans are going to gain control of Congress anytime soon, they need to seriously consider making some of the tough choices Ryan outlines (and perhaps coming up with some that he fails to consider, like reducing defense outlays).

Tie Assessed Property Values to Market Values

05.15.2010

Tax lightning is still striking New Mexico property owners. One of the problems associated with tax lightning is the convoluted way in which property is assessed and thus taxed in New Mexico.

Our own Micha Gisser, professor emeritus at UNM, wrote in the Albuquerque Journal about one component of the solution, that is, returning assessments to market values. This more logical system, as outlined by Gisser, would operate along the following model:

The market values of all homes are estimated as frequently as reasonably possible. By law, the assessed values of all homes are set equal to their estimated market values. The property-tax rate is by law defined as the ratio of the total required revenue to the aggregate estimated market values of all homes.

This sounds like a good system moving forward, but I’d like your comments.

Support/Attend Televised Rio Grande Foundation Candidate Forum

05.14.2010

In case you’ve been out of the country, you are probably already aware that the 2010 elections this November are very important to New Mexico’s future. Before we get to November, however, there is a primary on June 1 and early voting is going on right now.

In order to help decide who they want to vote for in November, the Rio Grande Foundation (along with KOB Channel 4) is holding a televised gubernatorial candidate debate to be attended by all five candidates.

This debate will be held on May 27th from 7:00 to 8:00PM and will be televised live on KOB Channel 4 from Rodey Hall on the campus of the University of New Mexico. We are extremely pleased that all five Republican candidates have accepted the invitation to participate.

As you might imagine, putting together an event of this size and importance costs money. Our expected outlay for this event will be just over $2,000. This amount will pay for an auditorium, staging, and a variety of other important things that go into this once-in-a-campaign opportunity.

Please support this history-in-the-making opportunity and help the Rio Grande Foundation by donating at least $20.00 by no later than Sunday, May 23rd. You can donate safely and securely online. And, as a thank you for your donation, we will have two tickets waiting for you at the door on debate night!

We hope you will support this event with a generous donation, even more than $20, and in return we will provide you with additional tickets to this once-in-a-lifetime event. And don’t forget, if you will not be able to attend the debate, you can still show your support by making a donation today!

You can mail your donation to Rio Grande Foundation, P.O. Box 40336, Albuquerque, NM 87196, or, as mentioned, online at our secure site. Or if you are more comfortable with “offline” communication, please give us a call us at 505-264-6090 and we will be happy to take your credit card information over the phone.

Please donate on or before May 23rd so we can be sure to reserve tickets for you! Tickets are limited and on a first-come, first-served basis, so we urge you to donate early and generously!

We, at the Rio Grande Foundation, are working hard to continue our efforts to make the public aware of who the candidates for Governor of New Mexico are and what they stand for.

What Can Cities do to Create Jobs/Economic Growth?

05.13.2010

That was the question this week at the Independent Forum. Martha Burk, thankfully not Richardson’s economic advisor, seems to think that only government can create jobs. Responses from the more rational panelists can also be found, including, not surprisingly, a rather lengthy response from yours truly (the final one).

I do wonder, however, where are the postings from the liberal lions like Carter Bundy or Jim Baca (former Albuquerque Mayor!!!), or Arthur Alpert? Surely they have some thoughts on how to create jobs (or are their views the same as Burk’s which is, expand government?)

As always, please add your own $.02 at the Forum.

Hay, a solution to the Gulf Oil Spill?

05.13.2010

I am NOT a scientist, but like just about every other American, I am concerned about the oil spill in the Gulf of Mexico, but from an environmental and a public policy perspective (check out the recent Independent Forum for more details). Up til now it has seemed like no real solutions to the spill are available.

So, it was nice to see this video which was sent to me by RGF supporter Jack Stamm of Santa Fe. Who knows? Certainly hay is cheap and biodegradable….

Arizona Embarks on Sweeping K-12 Reforms

05.11.2010

During that state’s 2010 legislative session Arizona lawmakers enacted some of the most far-reaching K-12 education reforms in state history. The changes have received little attention from any Arizona media so far. But you can bet you’ll hear much more as the state implements the new laws.

I’m betting that Arizona students will benefit greatly from these reforms in terms of improved test scores and rising graduation rates. If New Mexico’s political leadership enacted the same reforms, perhaps the Land of Enchantment could see some improvement as well? As Dr. Matthew Ladner of the Arizona-based Goldwater Institute writes:

Ten years ago Florida implemented a set of education reforms that transformed their schools from among the worst performers on national tests to among the best. Several of the bills that Governor Brewer has signed into law are modeled on Florida’s success.

1) Arizona now will annually issue schools a letter grade of A, B, C, D, or F.

2) The state now will have a robust program for experts in math, science and other areas to teach their subjects without first getting a teaching certificate from a college of education.

3) Lawmakers have curtailed social promotion by holding back some third graders who have yet to learn the basics of reading.

4) Legislators expanded the sources available to launch new charter schools.

5) Lawmakers increased the size and transparency of the state scholarship tax credit program and changed to the date for claiming the tax credits from December 31 to April 15.

6) The Legislature also specified school districts cannot use “years on the job” as the only criteria when deciding which teachers to keep. The Arizona Department of Education will be required to develop teacher and principal evaluations that include how well students score on specific tests.

Each bill contains important policy changes that will improve education by holding educators accountable to parents and taxpayers. The “A” to “F” school labels and teacher evaluation reforms could revolutionize Arizona’s public schools if properly implemented.

This year, Arizona lawmakers demonstrated with action, not just words, that they will not accept Arizona permanently sitting near the bottom of student achievement rankings. We will not see overnight improvement, and much hard work lies ahead. We have, however, taken the first vital steps to turning our school performance crisis around.

For more on Florida’s successful education reforms, check out Ladner’s presentation comparing Florida and New Mexico here.

Profile on Yours Truly in ABQ Journal

05.10.2010

The Albuquerque Business Journal profiled me in today’s paper. You can find out more about me than you probably want to know.

One of the RGF’s supporters did mention something they would like to see, that is, me do some kind of public speaking either for RGF or for other organizations, about my transition from a left-wing liberal to a free market conservative. If this is something that you’d like to have me speak about at an RGF event, or at a function put on by your group, please leave a comment along these lines or shoot us an email at: info@riograndefoundation.org

Everyone comes from a different direction in terms of their political leanings. I was certainly not born a libertarian. If you want to find out more about what a libertarian is, check out John Stossel’s recent program on “What is a Libertarian?” You can also meet Deroy Murdock, our upcoming keynote speaker.

Where Does the Money Go?

05.09.2010

Sometimes a visual representation does it better than a pile of numbers on paper. Check out this poster which visually represents the federal budget. Notably, even this visual representation of the complex and ever-growing federal budget, now $1.5 trillion, is an enlightening and interesting look at just how Uncle Sam spends all those tax dollars we give them.

Whatever else may be said about the budget, there is no doubt that it is too big. The Congressional Budget Office estimates that over the next decade, the national debt would increase more than $12 trillion if Obama gets his way. By the end of 2020, the total debt would be more than $20 trillion, or 90 percent of the country’s GDP. Indeed, in that year alone, just the interest payment to service the debt would cost taxpayers $925 billion.

Long Overdue Reform for Fannie and Freddie?

05.08.2010

Lost among all the debate in Washington over the stalled financial reform legislation has been any discussion about the major role of Fannie Mae and Freddie Mac (which I have previously commented on) in the banking collapse.

Now, according to the Wall Street Journal, it looks like there is a push by John McCain (R-AZ), Richard Shelby (R-AL), and Judd Gregg (R-NH) is to put the mortgage giants on the table for reform. It is about time. After all, as the article points out “The duo are by far the biggest losers of the entire financial panic—bigger than AIG, Citigroup and the rest.”

McCain and Shelby are pushing to make several, long-overdue reforms part of any financial reform package:

The amendment mandates that the current government conservatorship of Fan and Fred will end within 30 months. In the meantime, the companies will have to reduce their mortgage portfolios by 10% each year. If the terrible twosome can’t stand on their own after conservatorship, they would then go into receivership and be liquidated.

If they can survive on their own, they would have three years before the expiration of their federal charters, during which time they would have new operating restrictions. Messrs. McCain, Shelby and Gregg would repeal the affordable housing goals previously legislated for Fan and Fred and which contributed to their terrible mortgage bets, and the companies would have to reduce the mortgage assets held on their books by nearly 50% within two years and raise their capital standards.

Fannie and Freddie would also have to start paying state and local sales taxes, lose their exemption from full registration at the Securities and Exchange Commission when they issue securities, and start paying fees to repay the taxpayer for the value of federal guarantees. The $400 billion limit on taxpayer assistance would be reinstated, and for as long as they are in federal conservatorship or receivership, they would have to be included in the federal budget.

This type of reform should be a significant part of any financial reform. Only time will tell if the Obama Administration is serious about preventing the next economic crisis or not.

Throwing a Bone to the Opposition

05.07.2010

You know you’re making an impact when someone feels the need to set up a website for the sole purpose of opposing you. After more than four years of working on behalf of personal liberty for the Rio Grande Foundation, I am pleased that the folks at RGF Watch have arrived on the scene for the sole purpose of telling their readers how evil and influential we are.

Of course, we’re not going anywhere, so I look forward to a lot of Watchdogging by the folks (or person) over at RGF Watch. It is good to keep people honest and point out places where their logic falls short. For example, yes, I’ve written about Texas favorably, but that’s because Texas is one of the most economically-free states (check page 4) in the nation. That has led Texas to have significantly-higher income levels than New Mexico.

Randal O’Toole’s ideas stand for themselves, read his most recent book and decide for yourself.

I could go on, but I won’t. I’ll let the folks at RGF Watch use their website to critique our work and we’ll have a fun, if not always friendly, debate.

The Causes of Blue Cross’s Rate Hike (and solutions to our health care crisis)

05.06.2010

I already have laid out my brief thoughts on the recent, substantial rate hikes on New Mexicans in the individual health insurance market. Because of the importance of the health care issue to the state and the nation, I decided to expound a bit more on the problem of rising health insurance costs and health care inflation more generally.

The article appeared today in the Deming Headlight. Check it out. I explain why President Obama’s health care plan is destined to fail.

As an aside, I recently received my health savings account statement. I now have more than $6,500 saved in the account after just four years in possession of the account. How much money have you saved through your insurance policy to put aside for YOUR future health care costs?

Lessons from the spill

05.05.2010

This week’s question over at the New Mexico Independent Forum is one of the more difficult ones I’ve faced as a panelist on that forum. The issue that we’re all dealing with is the massive oil spill in the Gulf of Mexico. You can read my response here. Of course, the liberal panelists view the oil and gas industries as unmitigated evil-doers, bent on plundering the environment for as much loot as they can pocket.

The truth is that oil and gas are essential to the US economy and we all benefit from them — even the left-wing enviros –but the unfortunate fact is that deep water drilling is obviously not perfect technology.

The other issue surrounding the oil spill that it is somehow a vindication of “big government.” While use of the military to help clean up the oil spill in the Gulf is certainly a worthy role for government, it hardly justifies the rapid growth of the federal government.

Solving Albuquerque’s Budget Crisis: One Simple Step, Eliminate Outrageous Perk

05.04.2010

In case you missed the Channel 13 news at 10pm, here is an excellent story for which I was interviewed. The story details the very generous government perk received by City employees who leave the bureaucracy for whatever reason and have built up a great deal of sick and vacation time.

A few important aspects of the story include:

1) According to Christine Trujillo the AFL-CIO, City employees “donate a lot of time and energy to their jobs;”
2) No one in the private sector receives such a generous payout (if they receive anything) for their unused sick or vacation time;
3) Government workers in New Mexico, including City workers, are paid as well or better than their peers in the private sector. Check out our study here. According to our data which is taken from federal numbers, state and local government workers in New Mexico earn 11.5 percent more than those in the private sector in terms of total compensation for their work.

Mystery Surrounds Backers of $500 Million Bonds for Rio Rancho Solar Start-Up

05.03.2010

What kind of an outfit presenting a $500 million letter of credit has its “corporate offices” in a UPS store on the west side of Sin City?  The kind of outfit that is part of the team behind the effort to get Rio Rancho to issue half a billion in industrial revenue bonds to launch solar start-up Green2v.  Eclipse Aviation on steroids?  There are some mighty strange things in this story we report at New Mexico Watchdog.

Why are think tanks like Rio Grande Foundation so darn effective?

05.03.2010

If you follow the work of the Rio Grande Foundation closely, you might be amazed at the amount of work we do and the impact we’re having on public policy debates in New Mexico. In particular, this involves getting the pro-liberty, limited government message out in a place (New Mexico) that is in desperate need of it. Far be it from me to toot our own horn, but I don’t think there is another organization anywhere near our size that has as dramatic an impact on public policy debates. Just ask the paranoid liberals over at Albuquerque Journal Watch who said this recently “The Rio Grande Foundation’s unannounced reign over the Albuquerque Journal’s op-ed page continues unabated.”

Why is that? Well, I’d like to take all the credit or at least share it between myself and other employees, but it isn’t just us. Think tanks are really great vehicles for policy change. Read more about why that is true in this excellent article. Oh, and if you support our work and want to help us, please consider making a donation here.

How about Free Trade in Construction?

05.02.2010

Free trade works. If you don’t believe it, John Stossel’s most recent show explained its benefits nicely.

In fact, one of the greatest (under-appreciated) achievements of the US Constitution was that it set up a free trade area in the US that now contains a total of 50 states. Unfortunately, in Construction, as I read in today’s Albuquerque Journal, there is a web of preferences (barriers to free trade) that has been erected in order to improve the prospects of supposedly New Mexico-based construction companies in receiving public construction projects in the state. Other states have similar laws.

The reason for all the coverage in today’s paper is that New Mexico’s law is too easy to circumvent and that out-of-state construction companies are winnning projects and taking business away from New Mexico-firms. Sen. Tim Keller wants to strengthen New Mexico’s laws to more strongly favor New Mexico companies.

I don’t get it. In-state favoritism is bad policy and New Mexico, rather than attempting to further favor in-state contractors, should work with other states to abolish these bad laws. After all, it is ultimately taxpayers that lose out from this kind of trade war. If an out-of-state company can do the job better and/or cheaper (thus winning the firm the project), we’d be foolish not to hire them to do the job. As for New Mexico-based construction workers, it would seem that even out-of-state companies doing projects here would want to hire local workers rather than bearing the costs of importing out-of-state workers.

Is GM a Bailout Success Story?

05.01.2010

Some, talking heads, especially on the left, have been calling the bailout of General Motors a bailout “success story.” Said, Bill Press on the occasion of GM supposedly paying back its federal loan, “Time for all the nay-sayers to admit they were wrong. Say it loud and clear: No doubt about it, the auto industry bail-out worked!”

But is that the real story? Of course not! As Shikha Dalmia of Reason explains in her excellent Forbes column, the amount given to GM by the Obama Administration is far greater than GM and its advocates recognize and the company is still a very long way from paying this debt back.

Of course, there is the small moral issue of forcibly taking my money and giving it to a private business, but that is so commonplace these days…

Be Part of the Solution to America’s Budget Nightmare

04.30.2010

The Rio Grande Foundation is working with America Speaks , a non-partisan organization that attempts to spur dialogue on the most important issues of the day. You are cordially invited to participate in an unprecedented National Town Meeting to discuss our budget and our economy

On Saturday, June 26, 2010, thousands of Americans across the country will join together in a National Town Meeting to discuss the fiscal future of our country. Albuquerque is one of the six primary locations across the country where participants will be connected via satellite video, webcast and interactive technologies. Additional smaller gatherings and discussions will take place simultaneously in other cities across the nation and those locations too will be connected to the primary sites via webcast and interactive technologies.

In Albuquerque we will begin this historic Town Meeting at 9:30 am and the meeting will run to 4:00 pm.

We will meet at the Albuquerque Convention Center, 401 2nd Street NW, Ballroom A

We invite you to join the discussion.

Register now
To participate, you must register.

There is no fee to register and lunch and snacks will be provided free. Where possible, childcare, transportation assistance and translation services will be provided. The Albuquerque Convention Center is ADA accessible.

To register
Log on to: http://usabudgetdiscussion.org Click on “Participate” found at the top of the page.
On your right, in the vertical menu, under “Join the Discussion” click on Albuquerque. This will open up the Registration form. Complete and submit the Registration form.

You can also register by calling toll-free at 866-755-6263
Space is limited so register now !

Your voice will be heard !
Participants in the Town Meeting will reflect the political, socio-economic, and ethnic diversity of the United States. After June 26, AmericaSpeaks will present the priorities that emerge from the National Town Meeting to Congress and President Obama, as well as the National Commission on Fiscal Responsibility and Reform and the Bi-Partisan Policy Center’s Debt Reduction Task Force. The results that emerge from the discussion will have credibility with policy makers because they will reflect the authentic views of a large, informed, and representative group of Americans. The discussion will not be manipulated by any side or point of view, and will give the American public a real chance to find common ground.

For additional information, visit the America Speaks website at: http://usabudgetdiscussion.org or email Mikki Anaya, Albuquerque Site Manager at: manaya@americspeaks.org

Who is AmericaSpeaks? AmericaSpeaks is a nonpartisan, nonprofit organization with the mission to reinvigorate American democracy by engaging citizens in the public decision-making that most impacts their lives. Over the past 15 years, we have engaged more than 150,000 people across the country on some of the most pressing issues facing our communities and our nation, including the rebuilding of New Orleans after Hurricane Katrina, economic development in Northeast Ohio, and creating municipal budget priorities for Washington, DC. We have done so through innovative meetings that integrate authentic deliberation with new kinds of technology.

AmericaSpeaks takes pride in its reputation as an honest and neutral advocate for public participation. We play a unique role in the policymaking process by serving as a non-partisan convener of forums that provide the public with an opportunity to make decisions about important issues without fear of manipulation or bias. Our ability to help citizens and elected officials come together around tough public issues is dependent on our commitment to maintaining this neutral role. We have not and will never take a position on the outcomes of the national discussion.