Errors of Enchantment

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Proposed United stadium locations plagued by homelessness

08.03.2021

According to KOB 4, the New Mexico United’s proposed stadium locations are as follows:

  • Railyard Site
  • Coal and Broadway
  • 12th and I-40
  • 2nd and Iron

In reality, while 12th and I-40 is on the extreme north side of downtown, the other 3 are rather close by. And they happen to be in an area of town that is isolated and full of significant numbers of homeless.

This series of photos was taken below the Lead/Coal overpasses over the rail yard on 2nd Street near downtown. Similar situations exist throughout downtown, but these shots are representative of the three of the areas being considered.

Is the Mayor going to clean up this area if elected? Will there be a massive police presence? Will people actually head to any of these unproven and dubious locations at night?

KRQE covers mask protests

08.03.2021

Over a very busy weekend the head of the Rio Grande Foundation joined New Mexicans (in Albuquerque) protesting against masking kids in school this fall. At its peak there were approximately 150 people in attendance. Especially notable were the loud horn honks from the numerous cement truck drivers as they passed. Blue collar workers certainly seem to oppose masking kids in school.

RGF’s Paul Gessing briefly spoke to the reporter for the story at the end below:

The Conservative New Mexican also had an excellent writeup of the Albuquerque event.

 

Professional enviro misstates RGF, defends Heinrich

08.02.2021

RGF certainly stirred things up when we outlined our serious concerns with plans put forth by Sen. Heinrich and nearly 50 American cities to eliminate natural gas hookups from American homes.

Today, Demis Foster of the powerful Conservation Voters New Mexico wrote to attack Gessing. She begins on an untruthful note saying, “Gessing claims most Americans rely on natural gas.” While he never actually wrote that, it is actually accurate. The following is from the Energy Information Administration. While Foster is right that 60% of cooking uses electricity, water and space heating (home) are predominantly NOT electricity. Overwhelmingly that means natural gas or some other fossil fuel, a point which the liberal Vox acknowledges even while advocating for “electrification.”

Foster makes a number of claims that just aren’t true including “G20 countries have subsidized oil and gas with $3.3 trillion since 2015.” That is from THIS report which actually says the subsidies have been for “all fossil fuels” (not just oil and gas). Of course the report defines “subsidy” not as outright government support for something, rather as a lack of carbon pricing. It is a poorly-sourced report to say the least.

Overall it is wonderful to be attacked by one’s political enemies. If we are taking flak, we’re over the target.

 

 

Some interesting COVID questions from the New York Times

08.02.2021

The New York Times tends to be far-left, but in their Morning Briefings which are free to receive, they often make some interesting points about COVID and the “science.” Unfortunately, in New Mexico our Gov. (and the APS school board) are forcing kids to wear masks this fall with no end in sight. All state workers also must be vaccinated or wear masks and be tested regularly. But the Times has some interesting questions (below).

Below that is the latest COVID death data for the USA from COVID (this time using 7 day rolling average). As you can see, while the media and politicians are hyping a crisis, in terms of what really matters (deaths), the reality is very different. We recognize that deaths ARE a lagging indicator and will keep an eye on things as things evolve.

Heinrich responds

07.30.2021

Apparently we caught Sen. Martin Heinrich’s attention with our opinion piece decrying his plans to eliminate natural gas appliances. Here is Heinrich’s response which also appeared in several outlets.

The Senator basically makes a few points:

  1. He personally is pushing a “voluntary” program to essentially help people pay the costs, not a mandatory program. That is true and we never said anything else, but as we noted in the original article 46 cities have adopted mandates of some sort or another. If Heinrich wants to use our tax dollars to get the federal government to pay for people to abandon gas appliances. Is it really a stretch to say he supports or would support actual mandates? He’s never criticized them.
  2. Heinrich claims that he personally saved money by switching to an electric hot water heater. Perhaps that is true for him personally, but all he is doing at least right now is switching natural gas power in the home for a mix of fossil fuel energy produced elsewhere. The chart below shows the current mix of electricity generation from the Energy Information Administration is about 10% wind and solar. Heinrich’s goal would increase electricity generation needs by 40% (due to increased demand) AND he wants 100% of that to come from wind and solar. That is going to involve MAJOR taxpayer subsidies, mandates, AND large tracts of land being eaten up by wind and solar projects. 

Of course, PNM is already warning of brownouts in 2022 when the San Juan Generating Station is forced to close under New Mexico’s Energy Transition Act.

New Mexico Attorney General’s Public-Nuisance Suit Against Medical-Product Sterilization Firm a Dangerous Abuse of State Authority

07.29.2021

On December 22, 2020, Attorney General Balderas filed suit against product-sterilization company Sterigenics, alleging that ethylene oxide (EtO) emissions from its plant in Santa Teresa were creating a public nuisance and asking the court to enjoin the emissions.

You can read the AG’s complaint here.

Here is one informative report on lawsuit. 

According to the federal court docket (Sterigenics had initially removed the case from state to federal court but the federal court refused to accept the removal and sent it back to the state court), private contingent-fee lawyers from the Delaware-based firm Grant & Eisenhofer are working with Balderas on the suit.

  • Such state AG-contingent fee attorney arrangements have become commonplace. The alliances raise questions as to who is really in charge of litigating on behalf of the public interest, and what really motivates the private plaintiffs’ lawyers.)
  • Grant & Eisenhofer is advancing hundreds of private lawsuits against Sterigenics. Having a state AG action be successful in enjoining EtO emissions would be a boon to the firm’s private litigation efforts.

Sterigenics has operated the Santa Teresa plant since 1989. It sterilizes surgical kits, preoperative skin products, syringes, tubing, and other medical equipment using EtO. 50% of the devices sterilized nationally are sterilized with EtO. An Albuquerque Journal story noted that the state hospital association wrote to Gov. Grisham explaining the consequences if the state shut down the plant. The story also relates an affidavit from a device company microbiologist noting the suit’s impact on its product and patients.

The nuisance that the suit alleges is from “uncontrolled” emissions of EtO that are allegedly increasing cancer risks in the areas around the plant.

  • The state’s complaint offers no evidence of actual harm. It only recited what U.S. EPA has said about EtO emissions, which are deeply flawed (see pp 9-10 of Sterigenics brief).
  • The “uncontrolled” emissions allegedly occur a number of ways, including the opening and closing of facility doors and when customers visit the plant and carry away their sterilized products.
  • The complaint essentially demands that the emissions limit Sterigenics must meet is zero

As explained well in the trade associations’ amicus briefs, companies like Sterigentics that use EtO in their sterilization must comply with detailed regulations issued by FDA, EPA, OSHA, and the state environmental regulatory agency. Those agencies undertake meticulous efforts to craft and issue those regulations and employ issue experts in the process of setting emissions limits.

  • A judicial verdict implementing the AG’s zero-emissions approach would directly conflict with federal and state regulations, placing the AG and the court into the role of environmental regulators, a role they are entirely unfit to fulfill.
  • That outcome creates a compliance nightmare for Sterigenics and bodes ominously for any business in New Mexico or businesses looking to locate offices in New Mexico.

On June 29, District Judge Beyer granted the state’s motion for a preliminary injunction, prohibiting “continued uncontrolled emissions of EtO.” It’s unclear as of this moment what has occurred in the meetings between the state and Sterigenics that the court ordered with a goal of creating a “monitoring protocol.”

Bottom line: The state AG isn’t doing the state, the state’s business community, or New Mexicans any favors by pursuing this regulation-by-litigation effort to usurp control over EtO and its use from federal and state agencies whose authority over EtO emissions are firmly bound in statutes. General Balderas’ lawsuit will stoke fear over miniscule EtO emissions and device sterilization and any victories in the suit could help the suit’s masterminds in the private contingent-fee lawyer’ bar turn EtO into the next asbestos.

Other resources:

https://www.reuters.com/article/factcheck-eo-swabs/fact-check-nasal-swabs-sterilised-with-ethylene-oxide-are-safe-to-use-the-sterilisation-process-is-tightly-regulated-by-international-standards-idUSL1N2LU1H0

https://www.ehstoday.com/environment/article/21152366/ethylene-oxide-the-next-regulatory-battleground

https://cei.org/studies/epa-should-revise-its-assessment-of-medical-supply-sterilant/

Sterigenics moves to upgrade shuttered device sterilization plant | Medical  Design and Outsourcing

Sheryl Williams Stapleton issue highlights systemic issues w/ NM Legislature & APS

07.29.2021

The story below from KOB TV discusses the well-documented situation with Democratic Rep. and Floor Leader Sheryl Williams Stapleton. While details are still coming out, there are a few major issues that RGF. has highlighted in the past.

  1. While New Mexico has a citizen legislature and conflicts are part of the deal, it seems that Stapleton used her dual positions in the Legislature and at APS to commit the crimes she is accused of committing. The Legislature SHOULD prohibit its members from simultaneously being employed by entities (like APS) that they have budgetary control over. It is one thing to work in an industry that may have an issue before the Legislature and perhaps have to recuse oneself. It is another thing entirely to appropriate state dollars for an entity you work for.
  2. At the VERY least the APS and other government bodies should NOT be able to pay their employees for the time they miss on the job as a legislator in Santa Fe. Rep. Bill Rehm introduce legislation to that effect back in 2015, so this is not a new issue. The practice of publicly-funded bodies like APS paying employees for missed time serving in Santa Fe was described at the time as “Triple Dipping.” Stapleton was engaged in this and other legislators continue to do it.

An Interest Rate Cap Will DEFINITELY Hurt Small Borrowers

07.29.2021

Today, the Senate Banking Committee, led by Chairman Sherrod Brown (D-Ohio), is hosting a hearing titled, “Protecting Americans from Debt Traps by Extending the Military’s 36% Interest Rate Cap to Everyone.”

Absolutely: ensuring affordable access to credit for lower-income families and workers is a noble and worthwhile goal. That goal is not achieved with legislative proposals such as the imposition of a 36 percent interest rate cap. Lower-income individuals rely on safe and affordable small-dollar lending offered by financial institutions to cover unexpected expenses. An artificial interest rate cap restricts incentives for financial institutions to provide such small dollar lending services to subprime borrowers. Without incentives, the institutions offering these products will simply stop offering them. Without access to these vital products, borrowers might find themselves with few, if any, options.

It should also be noted that top-down interest rate advocates fail to justify their proposals by merely citing the Annual Percentage Rate (APR) of a loan. Context is critical to understanding the purpose of small-dollar high-interest loans.To suggest that small-dollar loans from reputable financial institutions are excessively expensive by pointing to their APR fails to recognize the reality of how such products are utilized. These small loans are designed to cover emergency expenditures and are often paid back by borrowers within a short period of time. To justify rate caps by discussing such a loan’s cost in terms of a year is, as the economist Thomas Sowell has pointed out, “like saying that a $100 a night hotel room costs $36,500 a year, when virtually nobody rents a hotel room for a year.”

By considering this option, Congress is taking the role of “mother knows best”. They are effectively removing the decision making ability of borrowers. It’s easy to sit in your house with electricity and heat with a functioning car to take you to your place of work in the morning and pass judgement on people of lesser means who have been shut out by mainstream lenders. Given the events of the past year and the negative impact lockdowns have had, especially on low-wage workers, it would seem that the Legislature should have higher priorities than eliminating needed financial options for working people.

One-size-fits all interest rate caps will cut off access to credit and eliminate choices in lending products. We urge Congress to refrain from further restricting the ability of borrowers from accessing credit of their choosing when emergencies arise and pushing them to worse outcomes.

Senator Ben Ray Luján (202) 224-6621 (575) 526-5475
Senator Martin Heinrich (202) 224-5521 (505) 346-6601
Instant Loans: How to Get Instant Approval & Funding

An Interest Rate Cap Will Hurt Small Borrowers

07.28.2021

Tomorrow, the Senate Banking Committee, led by Chairman Sherrod Brown (D-Ohio), is hosting a hearing titled, “Protecting Americans from Debt Traps by Extending the Military’s 36% Interest Rate Cap to Everyone.”

Politicians often claim to be helping “the poor” with the policies they enact. But people with the resources to take extended time away from their work and spend months in committee hearings are inherently not “representative” of the people of New Mexico. They need to be reminded that most people live “paycheck to paycheck” and struggle to manage an expense from time to time.

If Congress and President Biden approve of extending the Military Lending Act’s (MLA) 36% rate cap for all consumers, not just military veterans, this would devastate the financially vulnerable by reducing their access to credit. It could very well push our most disadvantaged citizens to underground financial products in an unregulated, shadow economy.

“Proponents believe a cap on fees and interest would help consumers, especially subprime borrowers with less-than-perfect credit histories, by limiting what they pay on payday loans and other less-regulated short-term credit,” Credit Union National Association (CUNA) and other coalition members wrote in a letter to the Committee last week. “In reality, its impact would extend far beyond payday lenders to the broader consumer credit market to cover affordable small dollar loans (including “accommodation” loans) that depository institutions are being encouraged to offer, credit cards, personal loans, and overdraft lines of credit. As a result, many consumers who currently rely on credit cards or personal loans would be forced to turn elsewhere for short-term financing needs, including pawn shops, online lenders—or worse—loan sharks, unregulated online lenders, and the black market.”

Few banks offer personal loans and credit union loans designed for subprime borrowers. Referred to as “payday alternative loans,” these borrowers represent less than 1% of the 100 million Americans who make up the non-prime consumer market. The reality is that most traditional lenders simply will not or cannot make these loans to borrowers with lower credit scores.

One-size-fits all interest rate caps will cut off access to credit and eliminate choices in lending products. We urge Congress to refrain from further restricting the ability of borrowers from accessing credit of their choosing when emergencies arise and pushing them to worse outcomes.

Senator Ben Ray Luján (202) 224-6621 (575) 526-5475
Senator Martin Heinrich (202) 224-5521 (505) 346-6601
Instant Loans: How to Get Instant Approval & Funding

New report: New Mexico is #1 “Economically-failing state” (neighboring Utah named #1 thriving state)

07.27.2021

The following is from GOBankingRates as reported on Yahoo News here. 

GOBankingRates took a look at a variety of economic factors, from year-over-year GDP and unemployment rates to wage changes and the percentage of a state’s population that is living in poverty. States were divided into the top 15 and the bottom 15 and ranked in reverse order. Thus, the state in the worst current economic shape appears as No. 1 at the end of the “failing economies” section, while the only state in the nation thus far that shows a year-over-year percentage gain in employment appears as No. 1 under the “thriving economies” section.

New Mexico is the Number 1 “failing” economy while neighboring Utah is the Number 1 “thriving” economy. The power of public policy.

Tipping Point NM episode 321: Failing Education System, Back to School Rules, Soccer Stadium and more

07.27.2021

On this week’s podcast discussion, Paul and Wally discuss the Gov.’s new “back to school” policies including mask requirements for elementary students/teachers and vaccine verification for junior high and high school students.

Last week was a very busy media week for RGF. It included a conversation with Fox Business Channel on film subsidies, Paul in the ABQ Journal discussing how Sen. Martin Heinrich is coming for your natural gas appliances, Patrick Brenner discusses Richard Branson abuse of New Mexico taxpayers in The Federalist.

One radical environmentalist NM Senator Soules is a big hypocrite when it comes to private jets.

“Shockingly” New Mexico’s education system has failed to improve under the Yazzie lawsuit. Paul discusses how Regis Pecos was one of Speaker Lujan’s top advisors but when we came to him with education reforms he didn’t do anything.

Mayor Keller plans to force taxpayers to pay $65 to $70 million for a stadium for the United soccer team and that doesn’t include land acquisition or cost overruns. 

Journal cartoon “nails” a lot about NM politics. Paul explains.  

Democrat legislators admit New Mexico schools are failing & more money hasn’t helped

07.27.2021

While the Rio Grande Foundation continues to monitor the rapidly-unfolding situation regarding school reopening and COVID 19 policy, the broader issues within New Mexico’s education system made headlines recently. We wanted to make sure to highlight them.

Recent interim testimony involving the Yazzie case by a prominent Native American leader led to some seeming realizations among New Mexico legislators that the government schools we spend so much money on are failing. Here are a few quotes:

Rep. Derrick Lente, D-Sandia Pueblo, “Native American children have been left to rot because of where they come from” for many years.”

“How much longer do our children have to fail for us to get this right?” Lente asked.

Rep. Javier Martinez, D-Albuquerque said he had “started to question whether more money is actually needed beyond what we’ve invested.”

“I think we’re losing steam,” Martinez said, “I’d hate to be back here in 20 years talking about how nothing has changed.”

Back in 2017, the Rio Grande Foundation argued publicly that more money (thanks to the lawsuit) was not going to “move the needle” on K-12 results. It looks like several “progressive” legislators are at least coming to realize that.

Unfortunately, unions are some of the biggest contributors to Democrats’ elections. So, while they MAY say some reform-minded things for public consumption, we haven’t seen them even contemplate serious education reform for more than a decade and the failure of additional money to improve New Mexico’s poor education results is unlikely to move the needle toward actual reform in the Legislature. We will work as hard as we can to put reform on the agenda nonetheless.

Can't You Take A Hint

 

The COVID situation is hardly a “crisis”: MLG expected to make “back to school” decision this week: UPDATED

07.26.2021

According to numerous news reports Anthony Fauci and the Biden Administration are considering reimposing mask mandates to include vaccinated Americans.

Meanwhile, Gov. Lujan Grisham is expected to reveal her Administration’s plans for back to school including masking or not-masking of kids in classrooms and outdoors. This should happen in a matter of days. New Mexico is one of 7 states in the nation with a statewide mask mandate in place for children and interested observers expect Gov. Lujan Grisham to continue with strict policies.

But, there is NO CRISIS when it comes to COVID deaths in the US as the following chart from Word O Meters makes clear:Kids are hardly vulnerable to COVID and there are questions over whether giving the vaccine (if/when approved) to kids under the age of 12 is safer than possible exposure to COVID.

Notably, 90% of people 65 and older are vaccinated.  That group has been far and away the most vulnerable to the Virus.

Many New Mexicans, especially those concerned about the impact of indefinite and unnecessary masking of our kids, are protesting throughout the State on Saturday according to John Block of Piñon Post.

On Saturday, July 31, citizens are organizing protests against school mask policies statewide, from Albuquerque to Carlsbad. So far, seven cities are participating, but the list of areas joining in the effort is expected to grow.

  • ALBUQUERQUE – 10am – 1005 Osuna, Vista del Norte Park – Contact Erin at Erinmg23@gmail.com or Karen at naturallyhealthykaren@fastmail.com
  • ARTESIA – 10am – corner of Main & 7th – Contact Stacey at 575-343-1234
  • CARLSBAD – 1pm – Eddy County Courthouse Lawn – Contact Christy Bryant at 575-361-7779
  • FARMINGTON – 10am – Main Street, Grassy Area in Front of Applebee’s, Near the Mall– Contact Lorna at 480-589-3856
  • LAS CRUCES – 10am – Albert Johnson Park on corner of Main and Picacho – Contact Daniel at freepeopleofthesouthwest@gmail.com
  • RIO RANCHO – 10am – Corner of Southern and 528
  • SANTA FE – 10:30am – Salvador Perez Train Park at 601 Alta Vista – Contact Kristi at 505-204-8261 or kristi7issues@gmail.com

UPDATES: In less than 24 hours since this post was made, the Lujan Grisham Administration released its “back to school” rules for COVID in New Mexico schools, including private ones.

And, while the CDC hasn’t acted yet, widespread media reports indicate that the CDC will recommend that EVERYONE in K-12 schools wear a mask.

Sir Richard Branson Should Pay His Own Way Into Space Instead Of Robbing New Mexicans

07.26.2021

The following appeared on July 21, 2021 in The Federalist:

The world is in awe that billionaire Sir Richard Branson has finally accomplished his 17-year goal of achieving spaceflight. On July 11, 2021, Virgin Galactic’s spaceship Unity reached 53.5 miles above the Earth with a crew including Branson. They spent a few minutes in zero gravity and returned safely to the runway of Spaceport America near the small town of Truth or Consequences, New Mexico. Congratulations!

The international scene is abuzz with this latest and undeniably impressive addition to Branson’s resume: but at what cost? Branson launched his flight from Spaceport America, a project initially conceived as early as 1992 when the Southwest Space Task Force was formed to develop and advance New Mexico’s space industry. The project received seed funding through a taxpayer-approved initiative in April 2007 when voters in Doña Ana County approved the spaceport tax.

Almost every year since, supporters of Spaceport America have announced the “upcoming launch” from their facility or the need for additional tax dollars to expand the Spaceport and its capabilities. To bolster their claims for additional tax money, Spaceport America commissioned a study by the consulting firm Moss Adams of Albuquerque. The study made headlines with the implausible claim that Spaceport America began producing net benefits for New Mexico as early as 2013.

In March 2020, the Rio Grande Foundation tallied up the total costs to taxpayers, determining that New Mexicans have borne a total project cost of $275 million, while revenues approach only $54.3 million for the state over the last 12 years. The vast majority of taxpayer-funded spending related to capital projects and nearly $10 million in operational expenditures. In fact, new information shows New Mexico shelled out an additional $1.5 million in advertising expenses related to the Virgin Galactic flight.

Branson is already a billionaire. Why are New Mexico’s politicians lining the pockets of these already wealthy and successful entrepreneurs through taxpayer-funded, industry-specific subsidies? The impact of corporate welfare disproportionately affects the economically disadvantaged, especially in impoverished communities like Doña Ana County and New Mexico as a whole.

In 2019, the state suffered from one of the highest poverty rates in the nation. The impact of the coronavirus pandemic and the corresponding economic lockdown of the past 15 months has certainly exacerbated our financial woes.

In fact, New Mexico trails the southwest in employment recovery. A recent report by WalletHub highlights the state’s 620 percent increase in unemployment claims, referring to the change in the number of initial unemployment insurance claims in the week of July 5, 2021 compared to the week of July 8, 2019. How can a state in this state afford to help send a billionaire to space?

Sir Richard Branson is now an astronaut. But from my perspective as a New Mexican and taxpayer, he sure seems like a wild-west robber baron, holding up taxpayer stagecoaches of the poorest state in the country to fulfill his personal vendetta of beating fellow billionaires Jeff Bezos and Elon Musk in the billionaire space race. He’s “Six-Gun” Branson, 21st-century robber baron, a stark reminder of our 19th-century industrial past.

In the end, his mission was accomplished. But Six-Gun Branson has only proven that he can launch his spacecraft from any airport with sufficient runway length. I’d hazard a guess that soon he’ll be riding off into the sunset while my fellow New Mexicans are left holding the $275 million bag.

New Mexico politics summed up in one handy Trever cartoon

07.26.2021

To say that we’re fans of Albuquerque Journal editorial cartoonist John Trever may be a bit of an understatement. But the Sunday cartoon (below) is particularly genius because of its multiple meanings about the way New Mexico politics and policies work.

  1. Private success vs. Public sector failure: While we have certainly criticized Bill Richardson’s decision to build a $200+ million Spaceport for Richard Branson, in the bigger picture both Bransons’ and Bezos’ successes are achievements for the private space industry. New Mexico’s schools are overwhelmingly government-run and funded. It would be nice if those who are rightly frustrated by the failures of this system would join us in focusing their efforts on bringing private sector competition and competence to bear on the difficult challenge of improving literacy in NM.
  2. A SECOND interpretation of the cartoon is yet another common theme of New Mexico government. Rather than doing the basics (like education) well, elected officials prefer to pursue expensive, high profile projects that really aren’t appropriate functions of government. The Spaceport is one such example, but Mayor Keller’s plans to build a new soccer stadium (with a starting price tag of at least $65-$70 million just to build, let alone property acquisition and inevitable cost-overruns) is another. Again, crime and public safety are crises demanding resources and attention, but Keller would rather build a stadium instead.

The environmental hypocrisy of one of New Mexico’s top Democrats

07.23.2021

Las Cruces state Senator Bill Soules paints himself as a radical supporter of the environment. In 2021 Soules introduced a proposal to eliminate ALL nuclear energy, coal- or gas-fired energy production within New Mexico. He also tried to force the State to purchase 75% electric vehicles. 

But Soules seems to set aside his environmental stance as long as the issue involves New Mexico’s Spaceport. Set aside the use of fossil fuels for Richard Branson to GET to space which involves the use of large quantities of CO2 emitting rocket fuel.

The folks attending Branson’s launch (and those likely to travel to isolated Upham, New Mexico for future launches) won’t travel by car, they’ll fly on private jets. According to a report from the UK, Private jets: can the super-rich supercharge zero emission aviation?  a four-hour private flight emits as much as the average person does in a year.

See Sen. Soules’ post-launch Twitter post (with “glowing” commentary on the number of private jets) below:

RGF talks New Mexico Film subsidies on Fox Business Channel

07.22.2021

The good news is that Fox Business Channel (unlike many news outlets) actually gave a platform to critics of New Mexico’s film subsidy program to discuss the program’s financial shortcomings.

The bad news is that like nearly all media outlets they badly misunderstand the financial implications of New Mexico’s incredibly-generous film subsidy program. Check out the story below which includes a brief clip of RGF president Paul Gessing discussing Hollywood film subsidies. Below that is a page from a 2019 Legislative Finance Committee report on the cost of Hollywood subsidies which provides details on the direct subsidies (not additional LEDA funds which are yet another subsidy).

In 2019 changes were enacted to New Mexico’s film program that made New Mexico’s already-generous subsidies even MORE generous. Here’s the LFC’s take on the financial implications. 

Heinrich coming for your gas heater, stove

07.21.2021

The following appeared in the Albuquerque Journal on July 21, 2021. While the newspaper cannot include hyperlinks to the data used in the piece we have added those links here:

Natural gas is a clean and affordable fuel they use to cook, heat their water, and provide warmth in the winter. Millions of Americans appreciate its benefits, even if they don’t think about them.

Just because you don’t think about natural gas doesn’t mean radical environmentalists (including New Mexico’s senior US Senator Martin Heinrich) aren’t. Heinrich recently wrote in the New York Times that “working to electrify our vehicles, homes and businesses is a critical part of achieving economywide net-zero emissions.”

He’s pushing legislation in Congress and for funding in the “infrastructure” bill for “electrification” – which is really another way of saying phasing out or banning your natural gas stove, oven, and furnace and requiring you to use electric heat and stoves.

Sacramento recently became the 46th US city to begin “phasing out natural gas in new buildings.” It’s not just happening in California. According to the Wall Street Journal, “Seattle, Denver and New York have all either enacted or proposed measures to ban or discourage the use of the fossil fuel in new homes and buildings.”

Just a decade or so ago the Sierra Club and other environmental groups supported natural gas as a cleaner-burning alternative to coal. Now, Senator Heinrich – counter to the economic interests of the state he represents (New Mexico is a major natural gas producer) and against the expressed preferences of consumers who use such appliances – is pushing to eliminate natural gas.

The push for a natural gas ban is premised on the idea that we should replace fossil fuels with wind and solar technologies that put us on a path to “net-zero emissions.” Of course, we’re not just talking about replacing all existing electricity generation; just 10% of current electricity production comes from wind, solar, and geothermal combined. Experts say “electrification” would increase US electricity consumption by 40 percent.

To say the least, Sen. Heinrich’s “electrification” scheme will require astonishing amounts of new electricity generation (at great economic cost) not to mention batteries to ensure reliability and new transmission lines to distribute it. We’ll be the ones paying for all that new redundant generation.

It’s an even bigger problem considering the reliability and demand issues already facing the Western United States this summer and utilities’ (including PNM’s) difficulty bringing new “renewables” online.  

And then there are consumer preferences for natural gas, which for some reason get casually ignored. You will have to search far and wide to find an electric stove in your favorite restaurant. That’s because natural gas is superior to electricity for cooking on both food quality and price.  Banning natural gas in restaurants means you would be waiting longer for your favorite meal while also paying more.

Any serious push for “electrification” of our economy will require massive government subsidies (thus Heinrich’s push in the current “infrastructure” bill), with electricity reliability already an issue the reliability of natural gas can be a literal lifesaver.

We all want clean, affordable, and reliable energy. Natural gas provides all three. And while the US has been steadily-reducing CO2 emissions for over a decade, China now emits more CO2 than the rest of the developed world combined (that includes the US, Canada, Europe, and Australia). Sen. Heinrich’s forced-shift to all-electric in the US will be costly and won’t achieve the environmental gains he seeks.

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.

 

Tipping Point NM Episode 319 Bezos to Space, Open Records Settlement, Unemployment and more

07.20.2021

Paul recently took another trip. He reports on mask mandates on airplanes & public transport among other things.

Jeff Bezo joins Richard Branson as a billionaire having been to space.

Pediatrics group wants ALL kids and staff to wear masks this fall. MLG still hasn’t announced a specific policy.

RGF settles w/ Keller Administration regarding open records. 

RGF has never been a fan of public financing of elections and we fought this w/ Democracy Dollars. Mayoral candidate Manny Gonzales recently received a reminder of how “public” financing can be politicized. 

New Mexico’s unemployment rate is tied for highest in USA. RGF also looks at the workforce participation rate.

For once ProgressNow DOES have a point about oil and gas.

More talk about reform of NM’s GRT. 

How do we address homelessness? An excellent Prager U video has some ideas.

Comparing New Mexico’s workforce participation rate

07.20.2021

People who follow the news in New Mexico are undoubtedly aware that the State’s unemployment rate at 7.9% is the highest in the nation.

But, unemployment rate is only one tool for measuring state economic policy. Workforce participation rate is another. We wanted to look at how New Mexico’s workforce participation rate had been impacted since COVID started, so we looked back to January 2020 and looked at data which is available through June of 2021. Here is the BLS workforce participation rate data.

As you can see below, New Mexico struggles with workforce participation and lagged the region before COVID. Of course, NM STILL lags the region, but more concerning is the fact that it seems like New Mexico’s recovery line has stalled.