“Way” back in 2019 when the New Mexico and national economies were booming and COVID 19 wasn’t even on the radar, Democrats in the Legislature and Gov. Lujan Grisham passed legislation (SB 437) to increase New Mexico’s minimum wage. In March of 2019 the unemployment rate was just 5.0%.

At those low unemployment rates which basically represented full employment, raising the minimum wage MAY not be very harmful. But, when unemployment rates are at elevated levels (as of August New Mexico’s rate was 11.3%) and small businesses are struggling to stay afloat, raising the minimum wage is an especially bad idea.

As the chart below (from NCSL) shows, New Mexico is at $9.00/hour right now. The rate will rise to $10.50 in January and to $11.50 by 2022. Unless New Mexico’s economy experiences a quick turnaround by January this well-intentioned policy will only further negatively impact small businesses throughout our State.

The following graphic was in an email from NAIOP (the local chapter of the National Association of Industrial Office Properties). Gov. Lujan Grisham is doing a Zoom webinar tomorrow (Tuesday) at noon in which she discusses ways BUSINESS can help kick start NM’s economy.

Of course, the simplest thing to be done is NOT keep businesses closed. We at the Rio Grande Foundation have PLENTY of other ideas but the list is too lengthy list here but you can start with “Right to Work and occupational licensing reform, reform of the broken GRT, and aggressive school choice.

The GOOD news is that after we posted a blog here (on September 21) asking the Gov. to reopen bowling alleys, she in fact has done so. This is not the first time during COVID 19 that she has (seemingly) responded to the Rio Grande Foundation’s impeccable logic on reopening the State economy (drive in theaters was another). So, we have hope.

UPDATE: After calling around to a few Albuquerque-area bowling centers I was told that the Gov. had only reopened bowling for leagues,  not for individuals. In a shocking scientific discovery, apparently league bowlers are immune to the virus!

As we head toward what seems to be both the most important and chaotic presidential election of our lifetimes, the Rio Grande Foundation has joined with the Heritage Foundation to distribute a booklet that illustrates exactly how the Electoral College works and why it is so important to American elections and sparsely-populated states like New Mexico.

Here you can download the booklet and explore information about the Electoral College. The Rio Grande Foundation also has a limited number of booklets that we can distribute to friends and supporters. Contact us at: info@riograndefoundation.org or 505-264-6090.

While New Mexico’s progressives have already (and against the State’s own best interests) passed legislation that hands New Mexico’s votes over to the winner of the popular vote (which will be dominated by big states like California and New York).

On this week’s interview podcast, Paul sits down with Public Regulation Commissioner Jeff Byrd. Byrd represents a district encompassing almost all of Eastern New Mexico.

Commissioner Byrd and Paul discuss the role of the PRC and his job as a Commissioner, numerous issues relating to the PRC including the changes made to the Chair position, the Constitutional amendment on the ballot this fall (and why Jeff believes it should NOT be adopted), and numerous aspects of electricity in New Mexico surrounding the Energy Transition Act.

The Gov. of California made headlines this week with his announcement that by 2035 his State will ban the sale of gas-powered vehicles. But just last year New Mexico Gov. Lujan Grisham announced that by just model year 2022 New Mexico would be increasing its fuel economy requirement for new cars to 52 MPG. The current average fuel economy rate is 25.1 MPG according to the EPA. 

As we noted at the time, Gov. Lujan Grisham (at the time) had “out California-ed California” by adopting even more stringent fuel economy standards than those on the books in California.

Will California’s decision spur Lujan Grisham to action? Perhaps more importantly, is New Mexico REALLY going through with the Gov.’s 52 MPG standard? This was put forth at a time of a record (oil-driven) economic boom in New Mexico. That boom has evaporated thanks to COVID 19 and the Gov.’s lockdown of the State’s economy. She MAY not be as enthusiastic about such radical plans at a time of serious economic challenges.

This has been a big week for the Rio Grande Foundation on the air. Paul recently sat down with Bob Clark of KKOB 96.3FM. You can find that show here. Bob and Paul discuss numerous topics from the death of Ruth Bader Ginsburg and her legacy as well as well as Paul’s family’s efforts to home school their children.

Paul also sat down with Jim Williams at KNKT Radio 107.1 FM. We discussed numerous issues in their discussion. You can listen to that discussion at the link above or by clicking on the image below.

On this week’s podcast discussion Paul and Wally give the latest update on COVID 19 including information on the Gov.’s latest press conference.

Youth sports can practice, but not play games, overnight camping is available at most state parks in groups of no more than 10, pick-your-own pumpkin patches will be permitted to operate, ice skating rinks may operate for athletic training and practice by reservation only, and swimming pools may open with no more than 10 individuals in a pool at any one time; previously swimming pools were permitted only to provide lane swimming.

Justice Ruth Bader Ginsburg dies. What does that mean? Paul discusses a ruling that included the Justice: Kelo v. New London. A recent ruling by a Trump-appointed judge smacks down Pennsylvania’s COVID lockdown. The conclusion of his decision is amazing.

Movie theaters remain closed; Same with bowling alleys.

New Mexico’s August unemployment rate remains in double digits.

Gun rights ordinances on the agenda at City Council;

Project Labor Agreements on the County’s agenda Tuesday night.

According to a new report, electricity prices jumped 10.1% last year (a prelude to further rate hikes?):

Beleaguered San Juan County raises taxes in order to overcome economic woes.

NM set up a $300 permanent fund for pre-K in the 2020 Legislative session. According to the Santa Fe New Mexican it isn’t growing. Rather than using that money or opening the economy MLG still wants a federal bailout.

Oil production bounced a bit in June, but it is still way down. 

Elections have consequences and with a 4-1 Democrat majority on Bernalillo County Commission, we knew that a massive giveaway to the unions that so strongly support the Party would be hard to stop.

Though the County is now facing a $24 million shortfall (just announced in today’s Albuquerque Journal) and the “community workforce agreement” (project labor agreement) ordinance adopted last night by the Commission. This would increase construction costs by an estimated 18%, but the Commission went ahead and adopted the giveaway to the unions and mandated that any construction projects using County money must be carried out with unionized workers.

Of course this will ultimately result in either roads that are in worse condition or higher taxes (or both), but what’s more important for the Commission (minus Lonnie Talbert) is to support the unions that donate to their campaigns.

The media report on New Mexico’s unemployment rate which, in August 2020, is 11.3%. But the Bureau of Labor Statistics collects unemployment data for cities in each state. You can access that data for Farmington, NM here. The latest data is for July, not August (as with State data) but we put the data into this useful chart below to illustrate how unemployment rates in New Mexico’s measured cities have changed and how they compare to some big cities in other neighboring states.

As Rio Grande Foundation and others have pointed out, New Mexico’s Governor-imposed lockdown is unfair and rather senseless. The Gessing kids LOVE bowling, but under the Gov.’s orders bowling alleys are shut down.

Bowling is one of many healthy forms of exercise available to people young and old. It is also a great social activity and influential books have even been written about it.

Fortunately, at least for some, Lujan Grisham’s authority does not extend to New Mexico’s numerous military installations. So, if you can get on to Kirtland AFB near Albuquerque or White Sands Missile Range, you can enjoy rolling a few frames at the bowling alleys on base (apparently you just have to get on base, but you definitely need military connections to do that).

The situation is similar at New Mexico’s casinos, several of which are open (are located on tribal lands and thus out of the Gov’s jurisdiction) and racinos which are under State control and thus locked down.

Are these sites participating in contact tracing? How many people (if any) have picked up COVID 19 at the casinos and bowling alleys beyond the Gov.’s control? Are New Mexico’s bowling alleys and other entertainment centers truly incapable of operating until there is a vaccine (as the Gov. implied during her September 10 press conference)?

Judicial opinions are rarely the stuff of inspiring rhetoric, but there are exceptions to every rule. Check out the following from the Trump-appointed federal judge (Stickham) who recently invalidated that State’s lockdown.

You can read the full opinion here, but the conclusion (below) is the most inspiring part and is well-worth the read. Like you, I’m sure the last six or so months have been frustrating and challenging. We only wish more judges (especially here in New Mexico) would do the same.

Despite New Mexico’s advantage provided by national-leading reliance on steady federal dollars, the State’s unemployment rate of 11.3% is among the highest in the nation (6th) with only a handful of other “blue” states that have also seen their economies locked down by their governors.

All of New Mexico’s neighbors have MUCH lower unemployment with the next-highest being Texas at 6.8%. Utah’s rate is 4.1%, about 1/3rd of New Mexico’s.

Lest you think New Mexico’s lockdown has been a “success” in saving lives from the Virus, Arizona and Texas do have higher death rates than New Mexico, but the rates in Colorado, Oklahoma, and Utah are all lower (Oklahoma and Utah significantly so).

As New Mexico’s Legislature, Gov., and PRC push forward to implement New Mexico’s “Green New Deal” Energy Transition Act, a new report from SaveOnEnergy.com shows that New Mexico electricity users saw a 10.1% increase in electricity rates over the past year. That is the 2nd-biggest increase among US states and seems inevitably tied to the State’s looming transition to “renewables.”

At this link you can see more data (such as that New Mexico’s 13.8 cents/kWh rate is the highest among its neighbors.

Is the 10.1% increase in electricity rates a sign of things to come? Will we soon join California with rates hovering near 20 cents/kWh (not to mention poor reliability)? We certainly believe it is possible.

On this week’s interview, Paul talks to Rob Nikolewski. A few years back Rob worked for Rio Grande Foundation as a reporter in Santa Fe. Now, he reports on energy for the San Diego Union-Tribune. Rob and Paul discuss the ongoing wildfires in California, the electrical grid, the shutdown of nuclear energy there, and the challenges of eliminating CO2 emissions from the State’s electrical grid.

At the Rio Grande Foundation we have covered the economic challenges faced by the Four Corners region and San Juan County. Primarily this involves the long term decline in natural gas prices combined with the closure of the region’s coal-fired power plants. 

Due in part to these economic challenges, tax revenues at San Juan County are down significantly and the County faced a $4.6 million gap next fiscal year. So, the County Commission just voted to raise taxes (1/8th cent on the GRT).

This isn’t a long-term solution. The Four Corners area needs some good economic news, but when two of your largest job-creating industries face extinction options are limited. We have consistently urged change in the Legislature and approaches by our State to bring more economic freedom to the State as a whole with benefits accruing to the Four Corners and every other part of New Mexico. Unfortunately, COVID 19 and the Gov.’s intense lockdown has caused the State’s unemployment rate to jump dramatically with Farmington’s rate even higher at 16 percent.

Unless something dramatic happens in Santa Fe this fall there don’t seem to be many bright spots on the Four Corners’ economic horizon.

On this week’s podcast discussion Paul and Wally discuss the latest COVID 19 update from Gov. Lujan Grisham. According to her latest pronouncements, theaters, entertainment centers, and bars in New Mexico are not likely to open until there’s a COVID vaccine.  The Gov. also begs Congress for more COVID aid in her recent testimony. There were not many specifics or details, just “send cash!”

In a bit of good news, the City of Albuquerque Council rejected an ordinance that would have “requested” the Legislature place a constitutional amendment on the ballot giving local governments the ability to enact gun control measures.

APD police chief Geier has resigned (or been fired). Paul discusses what Albuquerque residents should hope for on KOB TV Channel 4.

Wally and Paul discuss the policy proposals put forth by the pro-GOP umbrella group Respect New Mexico.

Finally, the Albuquerque Journal over the past week released polling numbers seeming to indicate strong support among New Mexicans for the Gov.’s mask mandate and the policies being implemented by both Gov. Lujan Grisham and ABQ Mayor Tim Keller. As Paul and Wally note, the only poll that matters happens in November.

The following piece by Patrick Brenner of the Rio Grande Foundation appeared in the Los Alamos Reporter on September 11, 2020:

As the country begins to re-open and we assess what the future will look like post-pandemic, states will have to take a hard look at where to allocate funds knowing there will undoubtedly be budget concerns for the foreseeable future. While budget cuts are imminent, and in New Mexico they are needed, that does not mean indiscriminately eliminating programs or services that provide real benefit to New Mexico residents who need them most, especially when they ultimately save taxpayers money in the long run.

Before everything shut down, I toured the New Mexico Men’s and Women’s Recovery Academies near Albuquerque where I met with both the residents and the staff who run both of these facilities. Not only did the residents and staff provide glowing reviews of the programming and facilities, but also the Department of Corrections official who toured with us said that she fights for this type of programming across New Mexico and spoke about how effective it has been. These types of programs are on the chopping block. But it is these same programs that serve as alternatives to incarceration and are incredibly effective in treatment, saving taxpayer money, and better outcomes for participants of these programs.

The New Mexico Men’s and Women’s Recovery Academies are both managed by the GEO Group, a private contractor that manages detention and corrections facilities. While often vilified in the media, this private contractor has spent $10 million last year alone on programming around substance abuse counseling and cognitive behavioral treatment. Rehabilitation programming like this provides care, compassion, and effective tools to help people and reduce recidivism rates.

When you visit, the most surprising element is the sense of community and pride that has been fostered among the residents and staff where the more tenured members act as mentors for the newer residents and they truly pull for one another through this tough transition. The graduates of this program see this as a new opportunity for their lives and they are less likely to fall back into their old ways. Funding these types of programs will not only help residents overcome their addiction and other issues, but they will also help New Mexico’s bottom line.

This programming in New Mexico is new. But inmates who participated in this same programming in facilities in Florida had a recidivism rate 30 percent lower than their peers that did not have the same programing. Assuming this trend holds and recidivism is reduced by one third of the average in Florida after participation in these programs, this could be a major cost saving measure for the state. In 2019 alone, this would roughly provide $8 million in cost avoidance for Florida because they will no longer have to house these reformed inmates. There is every reason to believe the Lea County Correctional Facility in Hobbs will see the same drop as Florida experienced and New Mexico could have the same experience with “cost avoidance”.

Corrections funding was already reduced during the recently-completed special session. When cutbacks occur in the 2021 session, programs like these should be among those preserved. The expertise of private sector providers can provide such services at a high quality and reasonable price, but the ultimate benefit is to the State and taxpayers of New Mexico who are desperately searching for ways to reduce crime and recidivism in their communities.

There is no “silver bullet” to solving crime. The COVID 19 epidemic will have unpredictable consequences for our society as well as crime rates and the criminal justice system at large for years to come. Even in times of tight budgets, New Mexico needs to continue investing programming, especially the kind that can be provided by private providers at a reasonable cost in our prisons and treatment facilities to ensure that we support inmates and residents. Short-sighted decisions now may have a negative impact on New Mexico for years to come.

Patrick Brenner is a policy analyst with the Rio Grande Foundation, New Mexico’s free market think tank. 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.

A recent article from the Santa Fe New Mexican notes that New Mexico’s new early childhood permanent fund is unlikely to grow as much as the advocates would like.

Quoted in the piece is Rep. Javier Martinez, one of the most left-wing members of New Mexico’s far-left Legislature. Martinez is and an advocate of “ending reliance on fossil fuels” but he sure loves the money they generate. Unfortunately, oil/gas revenue is down since the pandemic so the fund isn’t growing as fast as he’d like.

And, while Gov. Lujan Grisham cries about Republicans in Congress and the President not passing yet another massive bailout, she refuses to reallocate the $300 million early childhood “permanent fund” to more pressing needs. This fund was created in the 2020 session but apparently it is Washington’s job to fund NM government, not hers.

While Gov. Lujan Grisham continues to plead for more federal money to shore up New Mexico’s finances, we are taking the longer and more New Mexico-centric view of looking at the leading systemic challenge facing our State: low oil prices combined with dropping production.

The data do lag, so we are using the best info available from Oil Conservation Division, but as of June 2020, oil production in New Mexico has dropped about 20% since March. That is a slight rebound from May and the June data is also the latest available.

Prices on the global market have dropped somewhat to below $40 a barrel. Will production rebound in such a price-depressed environment? Only time will tell. If not for the Gov’s Virus policies and the myriad ongoing election controversies, this would be the number one issue facing our State.

The Rio Grande Foundation is avowedly NOT an expert on the nitty-gritty of policing, BUT when asked about the general role of what a new police chief for New Mexico’s largest city should do, we definitely have a perspective. We shared that with KOB TV Channel 4.

1) Police MUST protect property including businesses downtown AND statues. Waiting and simply watching vandals destroy businesses and public property is a bad strategy and it undermines the very role of policing. This includes doing more to move homeless encampments out of parks and other public areas.

2) Politicization of policing is a problem. The Mayor should set goals and standards and let the professionals work to achieve them.

3) “Defunding” the police is simply not going to happen, nor should it. Reforms must be considered to both encourage proactive law enforcement AND respect for individual rights, but even substantial budget cuts are likely NOT helpful in high-crime Albuquerque.

You can watch what we have to say below:

Admittedly, when we at the Rio Grande Foundation first heard of the Fair Deal, a raft of public policies proposed by Republican candidates for the New Mexico Legislature,  we were pretty skeptical.

After all, the original Fair Deal was a 21 point plan proposed by President Harry Truman that would have resulted in a massive expansion of the federal government. Then it was reported in the media that the plan was a “moderate agenda.” The term “moderate” is not necessarily a bad, but it doesn’t mean anything. So, what IS the Fair Deal agenda? We looked and it is actually pretty good. Here are the most substantive parts:

ECONOMY: Protect people’s right to retain more of what they earn (presumably by holding the line on or reducing taxes). Eliminate taxes on Social Security, stop unfair double and triple taxation of small business (presumably by reforming the GRT), and reduce or eliminate the income tax on working families.

Professional licensure reform, streamline mandatory disclosure requirements (unclear what these are or this means in practice), regular and mandatory review of all regulations, and the elimination of at least one old regulation for each new one added.

CRIME: Protect the 2nd amendment; redo bail reform, ensure mandatory sentencing, and require short-term confinement and counseling for drug criminals.

There are other policies discussed in the plan which can be found here. Some of them are written vaguely more as statements of principle than as specific agenda items. We’d like to see issues like “right to work” and New Mexico’s “prevailing wage” laws addressed and “school choice” or “education $$ follow the student.” Also, it is imperative that New Mexico’s laws governing public emergencies be addressed in order to restore balance of power.

Overall, as far as they go, the specific policy proposals laid out in this “Fair Deal” would definitely move New Mexico in the right direction.

Good news!  The anti-gun measure being considered by the Albuquerque City Council tonight failed at 5 to 4, specifically Resolution 20-68 which would have called the legislature to push firearm preemption reconsideration to the ballot. The vote tally is included below:

Lan Sena: yes
Isaac Benton: yes
Klarissa Peña: no
Brook Bassan: no
Cynthia Borrego: no
Pat Davis: yes
Diane Gibson: yes
Trudy Jones: no
Don Harris: no

A no vote indicates opposition to the anti-gun measure. Thank you so much for your hard work in encouraging our City Council to protect our constitutional right to keep and bear arms!