Virgin Galactic says it will launch its latest mission from the Spaceport on May 25. We wish them the best.

MLG recently spoke to Politico on energy. She made numerous factually incorrect statements. Paul fact-checks her comments and wonders why she’d say so many obviously wrong things. MLG ALSO claimed AR-15’s are “automatic weapons” which is not in fact true.

A California city that has banned gas stoves has exempted a celebrity chef and his new restaurant from the ban.

UNM’s budget explodes thanks in part to “free college.” This is on top of an already big higher education infrastructure.

MLG’s alcohol tax vetoes anger the left (and they’re not entirely wrong).

California’s wet winter/spring could save the west from blackouts and brownouts. 

As the battle continues to wage in Washington over raising the debt ceiling Democrats have claimed that Trump’s tax cuts are causing the budget shortfall. The reality is federal revenues rose after Trump’s tax cuts.

Local advocates argue that “free” buses are working for the City. Based on what?

In May of 2021 we at the Rio Grande Foundation noticed that Mississippi, a state that has traditionally been at the very bottom when it comes to K-12 results, had “moved the needle” on education outcomes. Numerous others have noted the same trend and the AP’s story further highlights how other states have embraced ideas that have helped improve outcomes in Mississippi.

Reforms adopted by Mississippi and others included in the AP report include: “reforms that emphasize phonics and early screenings for struggling kids.”

They “trained thousands of teachers in the so-called science of reading, which refers to the most proven, research-backed methods of teaching reading. They’ve dispatched literacy coaches to help teachers implement that training, especially in low-performing schools.”

“Mississippi, for one, holds students back in third grade if they cannot pass a reading test but also gives them multiple chances to pass after intensive tutoring and summer literacy camps.”

As the AP notes, “Mississippi’s legislation was based on a 2002 law in Florida that saw the Sunshine State achieve some of the country’s highest reading scores.” This, of course is what Rio Grande Foundation pushed at the time and then-Gov. Susana Martinez attempted to get through New Mexico’s union-controlled Legislature.

If Republicans are worried about our national debt, they shouldn’t be trying to extend the Trump tax cuts for the wealthiest of the wealthy.https://t.co/dJm8fK62Zh

— Martin Heinrich (@SenatorHeinrich) May 22, 2023

But, as noted by Daily Signal (using CBO data) federal revenues actually rose after Trump’s tax cuts.

Gov. Lujan Grisham recently appeared via teleconference at an energy summit put on by Politico. You can watch the full video below. As the saying goes, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” So is it the case with our Governor who tends to make her own facts up as she pleases while the media often cover for her. In this post we time stamp her faulty and simply inaccurate statements:

• 4:15: MLG “We’re one of the only states that is moving out of poverty.” Reality: May 3, 2023, Farmington Daily-Times, “New Mexico again had third-highest poverty rate in United States in 2021, State’s national ranking has changed little over last several years”
• 7:45: MLG claims “New Mexico has the largest wind farm in North America” Not according to any information we could find. A January 2023 list of “Top 5 Wind Farms in the United States” did not include a single New Mexico wind farm. A March 2023 article states Roscoe Wind Farm near Dallas is the largest.
• 10:15: MLG claims the vetoed incentives for EV’s etc were “too small.” While RGF AGREES with the Gov. on the vetoes, her environmentalist allies wanted her to keep them in the bill.
• 10:30: MLG claims budgetary pressures forced Kansas to go to “three day school days (weeks)”; The reality is that numerous districts in Kansas have gone to FOUR day school weeks (we couldn’t find any that had gone to three day weeks). According to Fox 4 KC, the option is becoming increasingly popular in KS and MO.

Four Day school weeks do save money, but Lathrop students now have 25 more instructional hours than before, and that’s brought a couple added bonuses.

“Our ACT scores have really shown some improvement. If there was anything, that’s one area we’re up. The first four years, up every year, and five out of the last seven, they’ve been increased.”

The article also noted that “Attendance has also improved for students and staff.”

• • 10:50: “I’ve done $500 million tax cuts, largest in history of the state.” According to the FIR for 2022 tax reduction bill HB 163, the tax cuts signed by MLG will cut taxes by $424 million by FY 2026.” Richardson’s tax cuts of 2003 (passed by a Democrat-controlled Legislature) reduced taxes by $524 million once fully phased in and adjusted for inflation (using the BLS inflation calculator):
  • 14:15: Moderator: Your state is NOT on track to meet its clean energy goals.” MLG, “I think we ARE on track.” At 16:15 still responding to this question MLG states “We have free college.” “I’m producing workers in the renewable energy sector.”
  • 16:43: “New Mexico was framed, and in fact I might…I do disagree with that frame as an energy state and a leader in energy…” On what planet is New Mexico NOT a a leader in energy. Watch her say this within context below:

The Gov.’s full remarks can be found here:

As we’ve discussed in this space, Sen. Martin Heinrich has been a leading proponent of getting rid of gas stoves. But, when it comes to government-imposed inconveniences we all know that certain favored celebrities and wealthy individuals often exempt themselves or are exempted from the most onerous rules and regulations.

So, it was no surprise when media outlets reported that Palo Alto, California (which has a gas stove ban in place) decided to exempt celebrity chef Jose Andres from its ban when the chef threatened the City with a lawsuit.

In her letter to the City attorney Anna Shimko wrote  that (Andres’ proposed restaurant) Zaytinya relies on traditional cooking methods that only natural gas appliances would grant “to achieve its signature, complex flavors.”

We support Chef Andres’ in his battle but only hope that ALL restaurants are exempted from the gas stove ban.

On this week’s interview Paul talks to Jodi Hendricks. Jodi is Executive Director of the New Mexico Family Action Movement (NMFAM). The group is one of the organizations working to put several passed and signed during the 2023 legislative session on New Mexicans’ ballots. We discuss the State’s challenging referendum process which is made all the more challenging by a hostile Secretary of State. What’s behind the bills and efforts to overturn them? How can average citizens get involved? You don’t want to miss this conversation!

According to the Albuquerque Journal’s recent reporting the University of New Mexico’s budget is growing rapidly and hitting new “milestones.” According to the article, main campus’ budget topped $1 billion and the consolidated budget, which includes the university’s massive health system, jumped 9.2% from the year before and was set at nearly $4.1 billion.

Not surprisingly the article attributes main campus’ large increase to the new Opportunity Scholarship (free college) program and a few large construction and improvement projects. You can see past UNM budgets for yourself here, but we were unable to find the proposed FY 2024 budget on the site.

But, even before the recent run-up in spending due to fat budgets AND the new Opportunity Scholarship program,  New Mexico spends a great deal on higher education relative to other states. According to the National Center for Science and Engineering Statistics (NCSES) New Mexico spent $11,564 per-full-time student among states. That’s 7th most among US states.

Of course 2021 is a few years ago and a major expansion of “free” college ago. Will all this new spending “move the needle” for New Mexico’s economy and overall education? We’re skeptical.

At the Rio Grande Foundation we love arguing and debating public policy. That’s how we know we chose the right vocation. But sometimes people defend policy positions that have ZERO basis in fact and don’t even attempt to make an argument. Take the article from the “Zero Fares Coalition” which defends Albuquerque’s “free” bus fares.

The “zero fares” policy is said to benefit numerous groups of low-income people and that “healthy, thriving community relies on accessible, sustainable and safe public transportation for riders and drivers alike.”

Overall, there is zero data showing that zero fares has any positive impact for our community as a whole. What we DO know is that US transit ridership seems to be in a permanent decline and that holds for Albuquerque’s buses (as seen below).

No amount of word salad urging City Council to, “celebrate transit riders by establishing a public engagement forum to deeply explore community-involved public safety options that center lived experience” will make the case for bad policy.

There are many people who we work with and who support liberty in New Mexico who too often go without being recognized. Sadly, the Rio Grande Foundation recently lost three such people who all helped the cause of liberty in their own ways:

Frank Bird was a board member and supporter of the Rio Grande Foundation. He was a former New Mexico legislator and had a long career with IBM as well.

Colin Hunter was an attorney who represented the Rio Grande Foundation in various legal cases over the years.

Joe Loisel was a Retired Army Col. Joe Loisel. Joe was very active in various military auxiliary groups and was a supporter of the Rio Grande Foundation.

The push for increased taxes on alchohol during the 2023 session was led by writers at NM Indepth and several “progressive” legislators. The legislators pushing for higher taxes on alcohol were Sen. Antoinette Sedillo Lopez, D-Albuquerque, and Rep. Joanne Ferrary, D-Las Cruces.

RGF is on the record as opposing increasing alcohol taxes and we share the Gov.’s concern that the tax hike “would not have a material effect on alcohol prevention and treatment.”

But something that received bipartisan support and just makes sense (yet was vetoed) was an effort by Sen. Gerald Ortiz y Pino, D-Albuquerque to shift half of alcohol tax revenues to treating and preventing alcohol misuse, about $24 million at current tax rates, rather than depositing them in the general fund. This was a move supported by advocates, industry, and RGF alike.

This confusing episode only highlights what (for those on the left AND right) amounts to a very mixed bag and hard-to-understand approach by the Gov. with regard to her broader policy goals AND these and other vetoes (not just alcohol policy). It is no wonder that her vetoes left so many scratching their heads even if they supported aspects of the vetoes.

One thing that is abundantly clear is that the advocates for higher alcohol taxes aren’t going anywhere. They will be advocating for higher taxes in the Legislature’s upcoming 2024 session.

NM’s Supreme court weighs in on PNM merger. It will consider the merger itself, not the new PRC. The massive California snowpack could alleviate electricity woes on the Western grid at least temporarily thanks to a boost in hydro-power.

A recent blog from Cato Institute notes that national transit ridership remains depressed and is likely to remain so. Meanwhile, the ABQ Journal decries free buses’ role in facilitating crime. Ford loses $66,446 for every EV it sells. 

Will ABQ become a “shanty town” if Mayor Keller gets his way?

The proposed interim nuclear storage facility in SE New Mexico has been approved. Meanwhile the ABQ Journal editorial board recently called out MLG & the Congressional delegation for opposing the facility.

California’s well-documented snowy winter after years of drought could impact New Mexico’s electricity situation for the better this summer. California. Before the recent drought really got going 12.3% of California’s electricity came from hydro-power. As the bottom chart from the EIA notes California’s drought was having a negative impact on hydro production.

That certainly impacted California’s electricity reliability and it made New Mexico’s energy transition even more precarious. PNM had repeatedly raised concerns about electricity supplies for this summer.

We are by no means “out of the woods” even for this summer. But, California’s hydro-power boom could help stabilize the entire Western grid.

The Biden and MLG Administrations are in lock step agreement on the “need” to subsidize electric vehicles. While the Gov. did veto an EV subsidy in the tax bill (disappointing some of her enviro group allies) she and the Legislature also spent $10 million in New Mexico tax dollars for EV charging stations. That’s on top of $38 million from the federal government. Lujan Grisham has also joined California in mandating the sale/purchase of EV’s.

But, even with numerous federal and state mandates electric vehicles are money losers for auto manufacturers. According to calculations from energy expert Robert Bryce Ford Motor Company is losing a mind-blowing $66,446 On Every EV It Sells. According to data released recently by the company, “Ford reported a $722 million loss on its EV business over the first three months of 2023. During that span, Ford sold 10,866 EVs, meaning it lost $66,446 on every EV it sold.”

Perhaps someday electric vehicles will be able to compete in the free market, but as it stands now they are most effective at wealth destruction.

On this week’s interview Paul interviews Jonathan Williams Chief Economist and Vice President for the Center for State Fiscal Reform at the American Legislative Exchange Council (ALEC). ALEC is America’s largest nonpartisan, voluntary membership organization of state legislators dedicated to the principles of limited government, free markets and federalism.

Paul and Jonathan discuss the new Rich States, Poor States index that he puts together for ALEC and what it means for New Mexico and its neighbors. They also discuss Art Laffer and Steve Moore, both of whom are involved in the project and have generated headlines recently. The Index examines historical policies and their impact on state economies as well as expected future economic performance. How does New Mexico rank on each?

Finally, they address the issue of pensions and government liabilities and a second report Jonathan is involved in called “Unaccountable and Unaffordable.”

https://www.alec.org/publication/rich-states-poor-states-12th-edition/

Transit’s declining ridership during and since the COVID 19 pandemic has been well-documented but Marc Joffe of the Cato Institute has an excellent blog post in which he details plummeting transit ridership and just how weak the ridership recovery has been.

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The national data track nicely with City of Albuquerque bus ridership which has been on a declining trend for many years. The same is true for the Rail Runner.

What is more shocking is the documented role that Albuquerque’s bus system (especially “free” bus fares) continue to play in the City’s crime epidemic. A recent Albuquerque Journal editorial highlights what anyone who tracks Albuquerque’s tragic crime situation has seen already.

How much more money has to be poured into wasteful transit projects is anyone’s guess, but at the VERY least the City of Albuquerque should abandon its failed “free” bus experiment.

Join the Rio Grande Foundation for a luncheon featuring speaker Judge Glock, Senior Fellow at the Cicero Institute, a nonpartisan public policy organization with deep experience in government, legislation and the law, technology, and entrepreneurship.

June 14, 2023
11:45AM – 1:00PM
Seasons Rotisserie & Grill
2031 Mountain Rd NW, Albuquerque, NM 87104
$50/plate before June 1
$55/plate on/after June 1

A pre-set menu with a vegetarian option will be available.

About Judge Glock:

Judge Glock is a Senior Fellow at the Cicero Institute. He was formerly a visiting professor at the Department of Economics at West Virginia University. He received his Ph.D. in History with a focus on economic history from Rutgers University. Judge’s academic writing has been featured in the Business History Review, Review of Banking and Financial Law, Journal of American History, and Tax Notes, and his public writing has been featured in City Journal, Politico, the New York Times, and the Wall Street Journal. Judge focuses his research on the areas of budgetary reform, housing, and homelessness.

Cancellation policy:
The Rio Grande Foundation will honor cancellation requests until June 7 at 12:00PM MT, 2023, minus a 15% transaction fee.

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Pete Dinelli has made some waves with his recent column in the Albuquerque Journal  in which he makes the case that “allowing the construction of 750 square-foot “casitas” and “duplex” additions in the backyards of all 120,000 residential lots that have existing homes” will make Albuquerque a shanty town, or at least an even worse one than it is.

The truth is that zoning and land use are complicated issues. Albuquerque has typically had strict and arbitrary rules while economically-dynamic Houston has no zoning laws on the books. The Rio Grande Foundation recognizes that Albuquerque and Houston are different places, but that a lighter touch to zoning would provide more and more affordable housing options in the City.

So, in the debate between Dinelli and Mayor Keller our sympathies lie broadly with Mayor Keller. Casitas (small living spaces added to existing houses) seem worthwhile. This is especially true in a city and state with a rapidly-aging population where such a housing option would be particularly helpful. Converting existing housing to duplexes needs further consideration and possibly more regulation than is provided for.

Apparently “Economic Development Week” is a thing and New Mexico’s Secretary of Economic Development Alicia Keyes celebrated it, in part with an opinion piece in the Albuquerque Journal.

As RGF has written in recent months, the recently-completed legislative session highlighted the Lujan Grisham Administration’s (and many of our State’s politicians’) fundamental misunderstanding of basic economic policy.

Keyes repeatedly makes arguments like “Unlike market-driven growth, economic development is a deliberate policy initiative to improve economic security for families.”

She goes on to write, “While the free market has brought us steady growth from many economic sectors, our initiatives target avenues to future-proof New Mexico with innovative, high-paying jobs for New Mexico graduates.

The core of this effort supports economic-base industry sectors – those that export goods and services and bring wealth into New Mexico from outside our borders.” She touts nine industries the Administration is supporting.

None of this makes any sense. States can certainly encourage certain industries on the margins, but there is no substitute for having strong free market policies in place that make a state an attractive place for economic activity.  The Rich States, Poor States report outlines 15 specific economic policy measures that, if enacted, make a state more attractive as a destination.

New Mexico remains a poor and economically-undeveloped state because it has not embraced the fundamental economic policies Keyes seems to dismiss. Especially in recent years this Gov. has papered over those problems via massive subsidies using New Mexico’s booming oil and gas revenues, but those are not going to transform the State economy.

Below are just a few rankings highlighting New Mexico’s failure to develop its economy (along with links). Perhaps Keyes and the Gov. should focus on the basics as a starting point?:

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Paul flags his latest article in National Review’s Capital Matters in which he argues that New Mexico is like a lottery winner in all the good and bad ways.

US News report on “Best States” ranks New Mexico 47^th overall. Is this a sound report? Paul dives into the details. 

“Free” money is popular at least to those receiving it.

As NM’s entire Congressional delegation pushes a 10 mile buffer around Chaco Canyon monument at the same time as the Navajo Nation rejects ANY Buffer.

New York bans gas stoves in new buildings. 

MLG has been named to the US Climate Alliance Executive Committee. MLG touts “hydrogen hub” to ABQ Chamber but more interesting is her plan to “create the largest statewide tutoring program per-capita in Country.” The Gov. remains unwilling to admit that her own COVID response did great harm to New Mexico students.

Sen. Heinrich announces his reelection bid for Senate.

According to Wallethub New Mexico has the worst problem w/ illegal drugs. Other studies find NM ALSO has the highest rate of deaths from alcohol, but the Legislature wants to “solve” the situation through a simple tax hike?

Virgin Galactic says it is going to have a crewed mission in “late May” and begin commercial flights in “late June.” Are these “make or break” missions for Virgin Galactic? 

According to a press release sent out today from Holtec International, the company has received approval from the Nuclear Regulatory Commission (NRC) to build and operate the company’s planned interim storage facility on the land provided by the Eddy Lea Energy Alliance (ELEA).

The project has the ability to allow Southeast New Mexico to diversify its economy, generate some 400 jobs, infusing ~$3 billion investment in the area. It will also put the nation on a better path forward when it comes to future deployment of nuclear power throughout the nation, an absolute MUST if the United States is serious about reducing CO2 emissions while maintaining consistent electricity generation at an affordable price.

The decision is also a rebuke to left-wing New Mexico Democrats including Gov. Lujan Grisham, Sens. Heinrich and Lujan and Rep. Stansbury, who all opposed Holtec’s plans, despite professing their “green” credentials  (while the facility drew support from the local community).

According to Virgin Galactic (the primary tenant at New Mexico’s taxpayer-financed Spaceport America) the company is planning a manned test flight for the end of May and the long-awaited start of commercial launches for sometime in June of 2023. Richard Branson and a test crew last flew nearly two years ago in July of 2021.

We don’t have exact dates for either launch which is somewhat hard to believe considering the announcement came out on May 8 with just three full weeks left in the month. But, their corporate website has been upgraded with other details about their plans for space and links for reservations.

While the Summer of 2023 has the potential to be a “make or break” one for the Spaceport’s lead tenant, as one space website notes, “The company has previously admitted that the current version of their spacecraft won’t be able to hit the flight cadence necessary for long-term commercial service, and that a more capable variant of the spaceplane will need to be developed if they are going to achieve weekly flights.”

We shall see if these proposed dates stick and how the craft fare.

Recently the Gov. gave her first post-bill signing speech to the Albuquerque Chamber of Commerce. In her talk she tacitly acknowledged that New Mexico’s existing government school system is failing to get the job done.

One interesting proposal by the Gov. involves a massive investment in tutoring. No specifics were offered, but it remains noteworthy that New Mexico’s existing school system spends north of $15,000 per-pupil already. A new tutoring program MAY move the needle on education outcomes (if done well), but it won’t be cheap. And, of course the State has JUST embarked on its new “universal” pre-K experiment which is ALSO very expensive.

Also, while unsurprising, the Gov. remains unwilling to admit that her own COVID response did great harm to New Mexico students. Sadly, the Gov. remains unwilling to “totally revamp the existing (education) system” but it appears that ALL of her education plans involve spending a lot more money.

Radical environmentalists and New Mexico’s congressional delegation (they are one and the same) have re-introduced legislation to create a 10-mile buffer around Chaco Canyon in Northwestern New Mexico. The legislation will prevent future leasing and development of oil, gas, and minerals on non-Indian federal lands. Interior Secretary Deb Haaland could also impose such a buffer on her own.

But, the reality is that the Navajo Nation JUST voted to reject any such buffer around Chaco Canyon. As reported by the Western Energy Alliance such a buffer could “cost Navajo members with allotted property rights an estimated $194 million over the next 20 years.”

In the resolution, the Standing Committee of the 25th Navajo Nation Council states, “If the buffer zone is adopted, the Navajo allottees who rely on the income realized from oil and natural gas royalties will be pushed into greater poverty.” The Council notes the “detrimental impact to Navajo Nation allottees by preventing the development of new oil and gas resources on allotments as a result of the allotments being landlocked,” exposing the fallacy from DOI that the withdrawal will not impact Navajo lands.

On this week’s conversation (and to commemorate the 500th episode of Tipping Point NM) Paul sits down with national taxpayer advocate Grover Norquist, president of Americans for Tax Reform. They discuss the debt ceiling debate and abusive practices of the IRS along with the tax and education reform successes being achieved in numerous states.