Errors of Enchantment

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Support “right to try” for terminally ill patients in Santa Fe

03.09.2017

With all of the bad legislation coming out of the Legislature in Santa Fe, HB 228 (“Right to Try” by Rep. Rebecca Dow) is one of the few bills that would expand freedom in the 2017 session. This opinion piece ran in today’s paper.

Seriously ill deserve every chance

When my son, Dusty, was diagnosed with melanoma cancer at age 35, our entire family was shocked. Before he was even diagnosed, the cancer had spread to his lymph nodes. This made his treatment plan urgent and aggressive and ruled out several existing treatments.Doctors in the hospital where he was being treated were conducting a clinical trial on a new and promising melanoma treatment. Because Dusty was young and otherwise healthy, we were sure that he would be able to get into the trial. We were wrong.

My son was not able to qualify for the clinical trial that was being done in the same hospital where he was being treated for the same disease because his cancer was already too advanced. Unfortunately, this is all too common.

Fewer than 3 percent of all cancer patients are able to enroll in clinical trials. It’s not because they don’t want to; it’s because it’s very difficult to qualify.

My son died two years after he was diagnosed, at age 37, and just two years after that, the drug that could have saved his life was approved by the FDA.

Too many families share our story. Too many families have a loved one facing life-threatening illnesses that are too sick to qualify for a clinical trial and end up missing out on a promising treatment that could help them because it is still in the approval pipeline.

It can take up to 15 years for the FDA to fully approve a new drug. When you’re diagnosed with a terminal or life-threatening illness, you simply don’t have that kind of time.

That’s why I support HB 228, the New Mexico Right to Try Act, which is currently under consideration by New Mexico lawmakers. This bill would give terminally ill patients – people like my son – the ability to try promising new treatments that the FDA has determined are safe but not yet fully approved.

People have asked if it’s safe to try a drug before it’s fully approved. The answer is that the drugs that would be available under this law have all passed government-approved safety tests and are being safely used in clinical trials. These are the exact same drugs that people are being given in clinical trials, so there is no extra risk for patients who take the drug under Right to Try. When you have a terminal illness, it’s not a risk to try something that might help you, even though there’s no guarantee. It’s a risk not to try.

But there’s a more fundamental question: Who should decide what a terminal patient can and cannot try? In my son’s case, someone at the FDA – a government agency in Washington, D.C. – made the call. They never met my son; they didn’t know his situation. They just said no one with cancer that had progressed past a certain point was allowed to try the drug.

I believe, and I think most New Mexicans believe, that the only people who should be making the choice about what kinds of treatments a dying person seeks is the patients, their families, their doctors, and the company that has the product that might help them. The federal government shouldn’t have had the ability to tell my son no when his doctors thought there was something that could help him.

I believe that the drug approval process ultimately serves us well. I want to make sure that when something is approved that we know all we can about the side effects and we’re certain it will work. And this bill doesn’t do anything to change that. All it does is give people who are in life-threatening situations the ability to do everything they can to try to save their own lives.

My son had nothing to lose by trying a drug that was still in clinical trials, but he didn’t get that chance. Let’s give future patients the right to try so they don’t face the same situation.

Norma Riley is a retired school teacher in Hobbs. Her son, Dusty Hydrick, died in 2009.

Where Are the Refineries?

03.08.2017

Source: “PADDs 1 and 3 Transportation Fuels Markets,” U.S. Energy Information Administration, February 2016

In news that must surely come as a shocking surprise to the Trump administration, Bloomberg reports that last year, Mexico “relied on U.S. gasoline … for nearly 50 percent of its total consumption as refineries operated by state-owned oil giant Petroleos Mexicanos … malfunctioned.” In the final month of 2016, the country “imported a record high of 1.2 million barrels a day of U.S. fuels.”

How many of those barrels were imported from New Mexico’s refineries? Zero.

While the Land of Enchantment produces over 400,000 barrels per day of crude (more than double the figure for 2010), its refining capacity is just 127,500 barrels per day. And the state’s two refineries — one in Gallup, one in Artesia — don’t ship a single barrel of petroleum products south.

As the the map above depicts, infrastructure is an issue. New Mexico’s pipelines don’t do exports. Given Bloomberg’s finding that “the U.S. refining industry has shifted its game over the last five years, taking advantage of gaps left by struggling refiners in Latin America, Africa and Asia,” that’s a distressing reality.

The U.S. is experiencing a bit of a refinery boom. Four new facilities came online in 2015 — three in Texas, one in North Dakota. And Raven Petroleum is building a $500 million refinery east of Laredo that’s geared toward exports to Mexico.

Given its own reservoir of crude, as well as its proximity to other oil-producing states, New Mexico could be a refining powerhouse. So why isn’t it? Regulations, taxes, eco-hysteria-driven NIMBYism, a lack of a right-to-work law? Something for the state’s well-compensated advocates for “economic development” to ponder.

Dem. Sen. Howie Morales: Increasing price of cigarettes reduces smoking…but the same rule doesn’t apply to labor?

03.08.2017

In today’s Albuquerque Journal, Democrat Sen. Howie Morales made his case for higher taxes on tobacco and e-cigarettes. We at RGF share Gov. Martinez’s concerns about any and all tax hikes, but that’s not really the point of this post.

Rather, Morales justified his tax hike, in part, by noting that a near-doubling of the tax “means there will be thousands of fewer smokers in the future.” He went on to say that “making smoking more expensive would save the lives of 7,000 New Mexicans,” presumably by reducing demand.

The idea that artificial price increases reduce demand is a basic tenet of economics, but just a few days ago Morales’ colleague Sen. Clemente Sanchez argued in the Albuquerque Journal that raising the minimum wage would “stimulate the economy and job creation.”

So, which is it? Do government-mandated price increases reduce demand for a good (as basic economics and logic imply) or do they somehow increase demand? You can’t have it both ways Senators!

Image result for supply and demand tobacco minimum wage

Image result for supply and demand tobacco minimum wage

A market-based solution to the higher education mess (that circumvents politicians)

03.07.2017

Higher education is a mess. Here in New Mexico it is clearly unsustainable as a line-item in the budget and nationally the cost is growing faster than almost any important good purchased by large numbers of people:

Enter Praxis which essentially moves to replace the costly (in both time and money) traditional college diploma with an apprenticeship program. The program (started by a libertarian young man named Isaac Morehouse), touts an average starting salary at a real job of $50K annually and a 98% placement rate all after 9 months in the program.

Morehouse recently appeared on Tucker Carlson’s show on Fox News to discuss the program:

At a time when the New Mexico Legislature seems hell-bent on making life more difficult for businesses and entrepreneurs, Praxis is a reminder that sometimes the best way to deal with bloated, expensive, and inefficient government is to just go around them.
 

Selecting Other States

03.07.2017

Source: Site Selection, March 2017

Site Selection is out with its annual look at capital investment in the states. The publication, using information obtained from the Conway Projects Database, tabulates projects that cost at least $1 million, create 20 or more jobs, and take up a minimum of 20,000 square feet.

Don’t bother sitting down for this: Texas’s chief executive took “his third Governor’s Cup,” and “the Lone Star State’s fifth consecutive such Cup.” At 642 projects, the contest wasn’t even close.

But states vary considerably in population, so Site Selection provides a helpful look at investments per capita. Surprisingly, New Mexico did not rank at rock bottom. The Land of Enchantment did, however, tumble into the bottom 15 states, excluding Alaska and Hawaii. We’re in lousy company — e.g., Delaware, Connecticut, New York. And every state that borders New Mexico fared better. (See graph above.) Note that energy-rich (and right-to-work) Texas and Oklahoma secured the most investments in the Southwest.

Like the Rio Grande Foundation’s ongoing analysis of job-creation in right-to-work vs. compulsory-unionism states, Site Selection‘s data are particularly valuable, because they track real-world investment. Surveys of CEOs and projections of the future have their place, but it’s tough to argue with facts.

Think the legislation emerging from Santa Fe in the final weeks of the session — more regulations, higher takes — will improve New Mexico’s capital-investment performance in 2017? Errors of Enchantment doesn’t, either.

ABQ Journal on higher education bloat actually underestimates the issue

03.06.2017

The Albuquerque Journal did an important public service to New Mexicans with its two-part series on New Mexico’s unsustainable higher education system. Part 1 is the most important part containing the big-picture data and a broad overview of the problem. Unfortunately, as New Mexico’s Legislature grapples with the budget, it shows no signs of systematically addressing the fundamental issues in higher education.

As we’ve noted before, New Mexico’s spends 6th-most of any state per full-time student. Clearly, it is not getting a great return on that investment in terms of economic growth or an educated workforce.

Amazingly, while the map that ran with the Journal story (below) was dotted with campuses, it actually under-reports the issue. CNM is listed as one dot on the map, for example, yet it has 7 branches not including its main campus.

Western New Mexico University has campuses in Gallup, Deming, and Lordsburg, none of which are shown on the map.

NMSU has an Albuquerque campus and UNM has its West Side campus which is also not found on the map.

In other words, New Mexico’s higher education bureaucracy is extremely bloated and expensive. Cutting back would be an important means of saving limited resources and concentrating them in ways that improve the system’s mediocre outcomes. Alas, the Legislature has not addressed the issue in any serious way this session.

State cuts, fewer students put NM higher ed in crisis

Yes, New Mexico’s General Fund has grown too

03.03.2017

As we at the Rio Grande Foundation have previously noted, New Mexico government is bloated. The number cited is typically total state spending including all of the federal pass-through money, but even the General Fund (which represents 1/3rd of total spending) has grown in recent years. See our latest chart illustrating that growth below:

Thanks to our friends at Americans for Tax Reform for the research!

RGF Speaker Series: End of Discussion? How the Political Left is Working to Squash Debate: Luncheon with Mary Katharine Ham and Guy Benson

03.03.2017
Albuquerque Event Notice!
Rio Grande Foundation Speaker Series Event:
End of Discussion?
How the Political Left is Working to Squash Debate:
Luncheon with Mary Katharine Ham and Guy Benson

Click here for registration form.

At the Rio Grande Foundation, we feel very confident that the ideas of free markets and individual liberty are the best methods for economic and social organization. We have repeatedly debated the merits of various such policies over the years.

Unfortunately, the political left – from college campuses to the media to congressional town halls – is increasingly unwilling to tolerate differing views.

  • Location:  Albuquerque Marriott Uptown, 2101 Louisiana Blvd NE, Albuquerque, NM  87110.
  • When:  Tuesday, March 14, 2017, 12:00 noon to 1:00pm.
  • Cost:  Seating is limited and can be purchased at the discounted price of $30 until Friday, March 10, 2017; $40 after that.

Mary Katharine Ham (current CNN contributor and former Fox News Channel contributor) and Guy Benson (currently a Fox News Channel contributor) rank among the most recognizable and influential young conservatives in the American media today. Ham serves as Contributing Editor to HotAir.com; Benson is Political Editor at Townhall.com and appears regularly on the Hugh Hewitt radio show.

Close friends for nearly a decade, the pair has collaborated on numerous projects &ndash coauthoring political analyses, co-hosting radio shows, and speaking jointly to live audiences across the country. Ham graduated with a journalism degree from the University of Georgia in 2002 and lives in Arlington, VA. Benson graduated with honors from Northwestern University’s Medill School of Journalism in 2007 and lived in Obama country (Chicago) prior to relocating to the Beltway in 2010.

Click here for registration form.

Albuquerque (the Submarine) Comes to an End

03.02.2017

Last week Errors of Enchantment called HB 252 a “silly billy,” since it would spend $125,000 “to educate the people of New Mexico about the missions of the nuclear-powered submarines USS New Mexico, SSN-779, and USS Santa Fe, SSN-763, and the effort to retire the USS Albuquerque, SSN-706,” as well as recognize “the state’s naval junior reserve officers training corps,” and lobby to “name a navy warship after Los Alamos county.”

In response, a helpful reader, who is also a retired naval officer, informed us that two “bases” of U.S. Submarine Veterans, Inc. exist in New Mexico — and if members are anything like the shipmates he had, “they would be more than delighted” to provide information to the public about the submarine force, “and would not need tax $$$ to do it.” Albuquerque’s base can be found here, while the White Sands unit is here. (Our reader also suggested the Naval Submarine League as another resource.)

As for the retirement of the Albuquerque, Naval Today recently reported that the boat, launched in 1982, was “decommissioned during a ceremony held at Keyport Undersea Museum.” At the event, Rear Adm. John Tammen noted that the Albuquerque “deployed 21 times to every corner of the globe, accumulating approximately 1.1 million nautical miles steamed, the equivalent of 52 global circumnavigations.”

Just because something is a good idea doesn’t mean that taxpayers should be subsidizing it. The fascinating tales of the submariners who served aboard the New Mexico, Santa Fe, and Albuquerque deserve to be told, but individuals and non-government organizations are more than capable of doing the job.

A Harsh Winter for Compulsory Unionism

03.01.2017

The Foundation is tracking announcements of expansions, relocations, and greenfield investments published on Area Development‘s website. Founded in 1965, the publication “is considered the leading executive magazine covering corporate site selection and relocation. … Area Development is published quarterly and has 60,000 mailed copies.” In an explanation to the Foundation, its editor wrote that items for Area Development‘s announcements listing are “culled from RSS feeds and press releases that are emailed to us from various sources, including economic development organizations, PR agencies, businesses, etc. We usually highlight ones that represent large numbers of new jobs and/or investment in industrial projects.”

In February, of 20,775 projected jobs, 13,441 — 64.7 percent — were slated for right-to-work (RTW) states:

The results for non-RTW states were better than usual last month, but employment was boosted by two investments planned to create 2,000 jobs each: Amazon in California and Blue Apron in New Jersey.

As for the sub-metrics the Foundation scrutinizes:

* Ten domestic companies based in non-RTW states announced investments in RTW states. Five announcements went the other way.

* RTW prevailed in foreign direct investment, too. Eight projects are headed to RTW states, with three to occur in a non-RTW state.

Marquee RTW investments included:

* Intel announced its intention to complete its Arizona-based “Fab 42, which is expected to be the most advanced high-volume semiconductor factory in the world” (3,000 jobs)

* Nestlé’s American headquarters fled California for Virginia, choosing to spend $39.8 million on the relocation (748 jobs)

* Connecticut-based Pratt & Whitney picked an existing facility in Georgia to “increase the production of parts and maintenance services and reduce costs for new and existing engine programs” (500 jobs)

Methodological specifics:

* All job estimates — “up to,” “as many as,” “about” — were taken at face value, for RTW and non-RTW states alike.

* If an announcement did not make an employment projection, efforts were made to obtain an estimate from newspaper articles and/or press releases from additional sources.

* If no job figure could be found anywhere, the project was not counted, whether it was a RTW or non-RTW state.

* Non-border-crossing relocations were not counted, border-crossing relocations were.

Why is Albuquerque Chamber of Commerce encouraging higher wage mandate?

03.01.2017

This article has been updated (as of 3/3/17) based on conversations w/ the Albuquerque Chamber of Commerce

Government-mandated price floors are bad public policy. Minimum wages fall into the same category even though they are often popular with those who think wage mandates come with no cost.

But why in the world would the Albuquerque Chamber of Commerce actively support a $9.00/hour minimum wage?

Notably, Albuquerque already has an $8.80 minimum wage, but most areas outside the Rio Grande Corridor are at the currently-mandated $7.50 an hour. This legislation will hurt businesses and low-skilled workers in those areas of the state while barely impacting Albuquerque. It would be better if the Albuquerque Chamber just stayed out as this really doesn’t affect them.

No matter what the motive, too many Republicans who should know better are falling for the deception. SB 386 just passed out of the Senate on a 24-6 vote. That means bipartisan support. Hopefully House Republicans better appreciate the perils of government-wage mandates. They may lose, but at least fight the good fight. As for the Albuquerque Chamber of Commerce, it may be time for members to give their leadership an Economics 101 lesson.

Image result for minimum wage price floor

Don’t NM Republican (and Democrat) legislators understand what Obama said: You don’t raise taxes in a recession!

03.01.2017

New Mexico is in a recession (at least). The Bureau of Economic Analysis has the latest GDP “growth” (3rd quarter of 2016) data for each state. Per the usual these days, the data are not good for New Mexico (see below). New Mexico was one of two states (Alaska being the other) to see a decline in GDP. Neighboring states like Colorado, Utah, and even oil-producing Texas raced ahead with growth rates exceeding 4 percent.

What does this mean? Well, it is a small sample size. Quarterly growth is volatile, but we know that New Mexico is in bad shape economically. Basic economic theory (as expounded upon nicely by President Obama) also tells us that tax hikes in bad economic times aren’t the best idea. So, what is our Legislature doing?

According to the ABQ Journal, the Senate Finance Committee voted to raise taxes. Unlike some votes, this was a bi-partisan vote with Republicans (minus Sen. Carroll Leavell) voting to raise taxes. It places these Republicans and any others voting to raise taxes uncomfortably to the left of President Obama (who at least claimed to oppose raising taxes during a recession) on the issue of taxes.

 

https://www.bea.gov/newsreleases/regional/gdp_state/2017/_images/qgsp0217.png

Not Bad Investment — No Investment

02.28.2017

Let’s all hope for the best for Sigma Labs. The Santa Fe-based firm “has uplisted … to the NASDAQ,” according to Albuquerque Business First. Under CEO Mark Cola, Sigma “develops and engineers advanced, in-process, non-destructive quality inspection systems for commercial firms worldwide seeking productive solutions for metal-based additive manufacturing or 3D printing, and other advanced manufacturing technologies.”

But there’s a dark cloud to every silver lining, and the company’s status shift is a reminder that New Mexico is woefully bereft of investable enterprises. The state does have a smattering of publicly traded corporations, but Sigma joins PNM Resources — a regulated monopoly — to comprise the only state-based companies listed on major stock exchanges.

Several of the Land of Enchantment’s other public corporations have been de-listed, while others (Santa Fe Gold, Net Medical Xpress Solutions) trade on the over-the-counter market. No offense — and as a reminder, Errors of Enchantment is not an investment-advice blog — but shares for the OTC firms are in the penny-stock range, and demand is rather limited.

For a state that prides itself on high-tech “investment” from Washington, it’s really appalling that PNM and Sigma are all we’ve got. New Mexico’s deep-in-denial pols can continue to ignore reality, but all the big-brained men and women working on nuclear-weapons systems at Los Alamos and Sandia aren’t entrepreneurial types. As Greg Mello at the Los Alamos Study Group noted in 2012: “It’s simply a fact that the economic standing of the state has not tracked lab spending. If anything, our standing relative to other states has declined as lab spending has increased.”

New Mexico is not the place for red-hot tech companies, explosive IPOs, and instant millionaires. Maybe D.C. dependency isn’t the best route toward STEM-based economic development?

If You Exempt It, They Will Come?

02.28.2017

SB 429, sponsored by Sen. Mary Kay Papen (D-Las Cruces), is titled the “Spaceport Confidential Records Act.” The bill would make “sensitive and proprietary private entity customer information” maintained by New Mexico’s spaceport authority — proprietor of “Spaceport America” — exempt from the Inspection of Public Records Act.

Given how little activity is occurring at New Mexico’s boondoggle-in-the-desert, the legislation seems rather unnecessary. With zero launches in all of 2016, and nothing headed for space so far in 2017, it’s not likely that many launch companies are concerned over prying eyes using New Mexico’s freedom-of-information law to ferret out trade secrets.

Meanwhile, the space industry stubbornly refuses to come to New Mexico to put its payloads in orbit. Recent developments at other facilities include:

* World View Enterprises opened “its new Global Headquarters campus, collocated with Spaceport Tucson,” calling it “the world’s first purpose-built commercial gateway to the Stratosphere.” For years, Spaceport America bureaucrats mentioned the company as a potential tenant. WVE decided otherwise, picking Arizona “after a rigorous nation-wide search and negotiations with multiple state agencies.”

* The FAA continues to evaluate LauncherOne’s proposal to place small satellites in orbit from California’s Mojave Air and Space Port. Virgin Galactic, the company that was supposed to start sending tourists on suborbital flights from Spaceport America years ago, owns LauncherOne.

* Way up in Canada, Maritime Launch Services, “a newly registered company in Nova Scotia with roots in the U.S and the Ukraine,” is looking to send medium-class payloads into orbit from the Maritime province.

* Way down in New Zealand, Rocket Lab is conducting “pre-flight tests and checkouts” for the inaugural launch of its Electron rocket. In January, The Wall Street Journal reported that the startup firm’s facility, located on the Mahia Peninsula, has locals sensing “an opportunity for jobs and rocket tourism in their new but still alien industry, with plans to build holiday units and offer bus rides to starry-eyed space tourists.”

Maybe instead of drafting legislation that doubles down on New Mexico’s dismal “investment” in Spaceport America, Sen. Papen should work with Sen. George Munoz (D-Gallup) to offer the white elephant to the highest bidder.

Dental therapy legislation could address “dental deserts” like Harding County (as seen on KOB)

02.24.2017

An excellent KOB TV story recently highlighted problem of rural health care in New Mexico including Harding County which doesn’t have a single dentist practicing within its borders. The good news is that we have the solution. HB 264, the “Access to Dental Care Act” would create a new level of mid-level dental providers (dental therapists) that would put a serious dent in this problem. By creating a new subset of providers who don’t have to take on dentist-level-debt, but could provide basic procedures, we could see great benefits in our rural communities.

It is to be heard in the House State Government, Veterans, and Indian Affairs Committee on Tuesday, February 28.

Santa Fe New Mexican Column: Before taxes, reform bloated government

02.23.2017

The narrative that New Mexico’s government has been “cut to the bone” has taken hold among many in Santa Fe. In a recent news article, Senate Majority Leader Peter Wirth asserted, “The cuts that we have imposed during the 2017 budget year have been devastating.” He went on to say, “I just think the future of our state is really at stake and we’re at a defining moment: Are we just going to obliterate key government functions, including our public schools, or are we going to step up and find measures to bring the revenues in we have to have?”

With all due respect Sen. Wirth, you’re full of it. Despite relatively slow growth in recent years, government at all levels in New Mexico remains far bigger than it is in any of our neighbors or in almost any other state.

The data are plentiful, but let’s start with data from USGovernmentSpending.com. According to the site, state government in New Mexico spends 15.35 percent of overall state gross domestic product. Only Alaska, Hawaii and Vermont outpace us.

Some have asserted that because K-12 education is a state, as opposed to a local, priority, that New Mexico state government seems larger than it really is. Data from the same website show otherwise. In fact, New Mexico moves into third place nationally. Factoring both state and local spending, New Mexico spends 25.03 percent of GDP. This puts us behind only Alaska and Vermont.

By way of comparison with our economically successful neighbors, state and local government in Texas consumes only 15.67 percent of GDP while allegedly “blue state” Colorado spends 18.48 percent.

Despite all of this, we are constantly told (and dozens of bills are introduced) to raise taxes or take money out of the permanent fund. Why?

The fact is that New Mexico’s government is bloated and inefficient. Take K-12 education which, according to Wirth, is in danger of being “obliterated.” According to U.S. Census data, our state spends 15 percent of per-pupil spending on administration, and the next-highest state (North Dakota) spends just 9.4 percent. New Mexico spends $11,026 per-pupil on K-12, which is again more than any of our neighbors. Arizona spends $8,786 and Utah spends a paltry $7,714 per pupil, for example.

Yet, on the important fourth-grade reading portion of the National Assessment of Education Progress (the gold-standard test given nationally) New Mexico came in 52nd (dead-last). Even the notoriously bad Washington, D.C., schools outperformed us.

I could go on and on about ways in which New Mexico government underperforms and how it has nothing at all to do with a lack of resources. Why does this situation persist?

The obvious culprit is New Mexico’s lack of something called “economic freedom.” According to the Fraser Institute, a Canadian think thank that studies the issue, economic freedom means: the ability of individuals to act in the economic sphere free of undue restrictions. According to the institute, New Mexico is the 47th-freest U.S. state. In other words, we’re among the least free places in the United States.

This can be overcome by adopting market-based reforms. Unfortunately, unlike in many other economically challenged (but striving to change states), policymakers in New Mexico find it politically rewarding to demand more tax revenue from an already overburdened and relatively small group of businesses and taxpayers as opposed to telling the various interest groups “no.”

Until New Mexicans educate themselves on why economic freedom works and redistribution doesn’t; until they reject the politics and policies of the status quo; and until they organize themselves to force their elected officials to pay attention, New Mexico will remain impoverished with little hope for improvement.

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

Santa Fe’s Silly Billies

02.23.2017

Milan Simonich recently lamented that despite the state’s fiscal woes, “many legislators still introduce unnecessary bills that waste time and staff resources.”

No kidding. Simonich cited SB 99, which “would make it a crime for a prison inmate to possess a cellphone,” despite the pesky fact that the “Corrections Department already prohibits prisoners from having cellphones.” Another bill would “make the green chile cheeseburger the official hamburger of New Mexico,” while HB 204, which “should be called the Sore Loser Initiative,” mandates that “candidates for president … provide copies of their last five federal income tax returns to qualify for the ballot in New Mexico.”

Errors of Enchantment has a few “silly billies” of our own. Near the top of the list is HB 252, which seeks a $125,000 appropriation “to educate the people of New Mexico about the missions of the nuclear-powered submarines USS New Mexico, SSN-779, and USS Santa Fe, SSN-763, and the effort to retire the USS Albuquerque, SSN-706.” The money’s also to be spent on recognizing “the state’s naval junior reserve officers training corps” and lobbying to “name a navy warship after Los Alamos county.” We’ve got nothing against the fine men and women of the U.S. Navy, but perhaps $125,000 would be better devoted to addressing the state’s dire fiscal condition.

Are New Mexico educators engaged in an orgy of shaming students who have deficits in their school-lunch accounts? Errors of Enchantment can’t find any evidence of such abuse, but that didn’t stop the drafting of SB 374, the “Hunger-Free Students’ Bill of Rights Act.” It directs schools not to “publicly identify or stigmatize a student who cannot pay for a meal or who owes a meal debt by, for example, requiring that a student wear a wristband or hand stamp.”

No, that’s not a joke.

The good news is that the deadline for submitting bills, memorials, joint memorials, resolutions, and joint resolutions has passed. So there’s no way for the list of time-wasters to grow any longer.

Has New Mexico’s economic death spiral begun?

02.23.2017

There is no clear definition of what causes an economy to go into a “death spiral,” but declining revenues leading to tax hikes which lead to businesses and productive citizens leaving which in turn leads to declining revenues is the one I would put forth. To be sure, Forbes named New Mexico the #1 “death spiral” state in the nation (by a long-shot).

We’ve known about the declining revenues and young people leaving for a few years now, but it looks like the tax hike phase of New Mexico’s death spiral may be here. Democrats in the Legislature just passed a budget that includes tax hikes (although they will likely be vetoed by the Gov.) Even more troubling is that the largest County (by population) in our State is looking to pass major tax hikes.

As the Foundation has pointed out in the past, the GRT in Albuquerque has risen more than 20% since 2000 and Bernalillo County just increased the tax in 2015. Adding another tax hike (or hikes) on top of those already-rising rates may not seem like a big deal, but it may also be the thing that pushes more businesses and people out.

Doubts About an Ethics Commission

02.22.2017

Larry Barker’s exposé of the Division of Vocational Rehabilitation (DVR) is sure to be trumpeted by supporters of an ethics commission in New Mexico. The bureaucracy awarded a contract for veteran outreach to Clarence Gallegos, whose wife was a manager at the Public Education Department, which oversees the DVR. Gallegos, who had “no college degree, experience, or training,” then won a no-bid renewal of his deal, despite his failure to fulfill his obligation to hold “a minimum of two town hall meetings.” Contract #3 was awarded around the same time Gallegos wound up in jail, and … read KRQE’s coverage for the whole sordid, sorry tale.

There are currently two bills before the legislature to establish an ethics commission in New Mexico: SB 218 and HJR 8. Both would subject elected officials, bureaucrats, lobbyists, and contractors to scrutiny by a seven-member board. Civil penalties/sanctions would be imposed on offenders, and possible criminal activities would be referred to, as the House bill puts it, “the appropriate prosecutorial authority.”

The proposals have many similarities — seven commissioners, four-year terms that are staggered at the entitiy’s founding, an executive director — but some significant differences as well. SB 218 would let the state’s chief justice make an appointment the commission, while its counterpart in the House wouldn’t. The latter requires a five-member majority to act, the former doesn’t. SB 218 requires that the commission’s chairman be a retired judge, HJR 8 is silent on the issue. Most importantly, the Senate bill establishes the ethics commission by statute, while the House’s proposal submits the matter to the voters for possible addition to the state constitution.

But while no one would question that corruption is a disturbing reality in the Land of Enchantment, it’s not at all clear that creation of an ethics commission would, as Common Cause put it, be “a critical step in rebuilding voters’ trust in our system.” Some of the cleanest state governments in the nation — e.g., Idaho, Vermont, and Wyoming — have no such entities. And many corrupt-as-they-come states — e.g., Illinois, New York, and Louisiana — have ethics commissions.

You can’t have big corruption without big government. The best tool to combat fraud, greed, and sleaze remains state officials, whether elected or appointed, who understand what the “public” sector should and should not do — and prefer liberty, opportunity, and prosperity to ever-metastasizing government.

The Rio Grande Foundation has yet to score the ethics-commissions bills in our Freedom Index. What do you think? Would a new oversight body fight malfeasance and graft in the state? Or is an ethics commission just more wishful thinking by left-leaning proponents of “good government”? Let us know.

Federal Dependency, in One Table

02.21.2017

Democrats in the House of Representatives have approved a General Appropriations Act for the upcoming fiscal year, which begins on July 1st. The media are covering the plan’s spending priorities, and wonkier Errors of Enchantment readers can view the 191-page legislation here.

But one aspect of the budget is being ignored, though, and it’s a reality that should terrify the state’s taxpayers. The table above is taken from HB 2’s fiscal impact report. It shows that revenue from the federal government — the same government that has tens, if not hundreds, of trillions of dollars in unfunded liabilities — pays for a disturbingly high portion of state expenditures. Here’s how much D.C. covers spending in several major categories:

* Health, Hospitals, and Human Services (primarily Medicaid): 72.7 percent

* Transportation: 46.1 percent

* Other Education (regional education cooperatives, the Public Education Department, the Public School Facilities Authority): 22.6 percent

* Higher Education: 20.8 percent

So four of the General Appropriation Act’s accounts get at least a fifth of their revenue from the feds. (Agriculture, Energy, and Natural Resources just misses the cut, at 19.2 percent.) The biggest cost category, which includes healthcare coverage for the “poor,” is subsidized at a rate of nearly three-quarters.

That’s a fiscal relationship that cannot be sustained. Given the results of the 2016 presidential election and the makeup of New Mexico’s congressional delegation, don’t look for Trump administration officials and Republicans in Congress to be keen to subsidize the state at the rate to which it has become accustomed. All the more reason why the Land of Enchantment, at long last, must implement an economic-development strategy that fosters a vibrant, dynamic private sector.

New Mexico’s Path to Presidential Irrelevancy

02.20.2017

Happy Washington’s Birthday! Or Presidents’ Day. Or President’s Day. Or Washington’s and Lincoln’s Birthday.

Whatever you call it, the holiday offers a chance to check in with liberals’ targeting of the Electoral College. There are four bills before the legislature that would hand New Mexico’s five EC votes not to the candidate who garners the most support in the Land of Enchantment, but the victor in the national contest for votes.

SB 42, SB 54, and SB 102 make the adoption of the “Agreement Among the States to Elect the President by National Popular Vote” statutorily, while SJR 7 submits the idea to voters for possible addition to the state constitution.

There are plenty of strong arguments against electing the nation’s chief executive by popular vote. Probably the best criticism is that those pushing to do so today are solely concerned with politics. The GOP’s nominees in 2000 and 2016 lost the popular vote, but won the EC, and Democrats don’t like that — thus, their push to change the rules of the game. But the nation’s demographic profile is changing rapidly. The citizenry is aging, the birthrate is cratering, the South and West continue to draw refugees from California and the Northeast, and the future of immigration is anyone’s guess. The popular-vote advantage Democrats enjoy today might not last. Why let the vicissitudes of short-term politics usurp a provision enshrined in the U.S. Constitution?

As for the charge that the EC is an affront to democracy, the left-leaning Brookings Instruction’s Richard Lempert noted: “Built into our system of checks and balances are several undemocratic institutions, most notably our entire judiciary. Also several procedures, including amending the Constitution and overriding presidential vetoes require supermajorities. The nation seems to have survived these limitations on majoritarian democracy reasonably well, enduring, perhaps in part, because of them.” The Cato Institute’s Roger Pilon, a libertarian, concurred, writing that the Framers “were no friends of direct democracy. Indeed, they feared undiluted majoritarian rule almost as much as royal rule. They put liberty first, with democracy as one, but only one, means toward securing it.”

Diluting the power of large-population states is another reason to eschew EC “repair.” Grabbing big numbers of votes in a few key states might make entire areas of the country irrelevant. (Why bother with the concerns of the Intermountain West, for example, when the region’s eight states have fewer total votes than California alone?) Writing in the The Los Alamos Monitor, Bob Morgan predicted that the end of the EC would encourage candidates to “spend even more of their time and money on the big cities where most voters reside. New Mexico, which has never been more than a quick pit stop on the campaign trail, will become a mere administrative unit in a monolithic national government. End running the Electoral College is another step toward the increasing concentration of political power in the largest urban states, accelerating the decline of the more thinly-populated states into the status of imperial provinces.”

An intriguing final note about the campaign against the EC in the Land of Enchantment: Sen. Pat Woods (R-Broadview) has drafted a bill to adopt the presidential architectures in place in Maine and Nebraska. It would award EC votes by congressional district, with the statewide winner grabbing two EC votes. As Americans currently cast their ballots, the change would benefit the GOP, and thus, skepticism is warranted. (Besides, SB 127 has no chance of passage in a legislature controlled by Democrats.) But it’s an interesting concept — one that makes the EC more democratic, while not turning the presidential contest into a national plebiscite. An opportunity, perhaps, for compromise?

Not much action has been taken on popular-vote legislation so far, but the 2017 session is only half over. As the left’s hatred of “that man in the White House” intensifies, look for at least one of the bills to win approval from both chambers.

Update: Prediction confirmed! SB 42 has passed the Senate, 26-16, on a party-line vote.

What’s in that reform/reboot of New Mexico’s tax code? (a brief explanation from the author)

02.20.2017

There has been a fair amount of media coverage on the sweeping tax reform package introduced by Rep. Jason Harper and two Democrat co-sponsors (Sens. John Arthur Smith and Carlos Cisneros). The bill (HB 412) was introduced last week (but it is  As with any ambitious plan, there are lots of questions and concerns.

Rep. Harper (who calls his studies of New Mexico’s tax code his “second PhD”) has provided a short, but informational white paper on the plan which we have posted here. It beats reading all 347 pages of the bill.

Simply put, we at the Rio Grande Foundation believe that tax reform is a critical step for reforming New Mexico’s economy.  It is widely-recognized that New Mexico’s tax code is broken and it is holding us back (something we wrote a decade ago).

And, before anyone gets up in arms about re-instating the grocery tax as a means of broadening the base and lowering rates, Rio Grande Foundation opposed the reforms that eliminated the tax on groceries more than a decade ago…and so did NM Voices for Children (which now is leading the charge AGAINST re-instating the grocery tax).

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