New Mexico lawmakers, governor seek $1B spending increase - By Morgan Lee Associated Press
New Mexico's governor and leading state legislators on Thursday proposed a $1 billion increase in general fund spending for the coming fiscal year — a roughly 14% boost aimed at shoring up access to health care, improving public education and providing new investments in child wellbeing and public safety.
The lead budget-writing committee for the Democrat-led Legislature outlined its spending priorities ahead of a 30-day legislative session starting Jan. 18 that focuses primarily on spending and taxation.
"New Mexico has an opportunity for generational change with the amount of money that we have," said Democratic Sen. George Muñoz of Gallup.
The Legislature's spending plan shares major priorities with a separate budget proposal from Democratic Gov. Michelle Lujan Grisham, including a 7% pay increase for public education workers, plus additional taxpayer support for pensions and medical care.
Public employees at most state government agencies would receive similar pay raises in two stages, starting in April, under the Legislature's plan.
Lujan Grisham promoted her spending proposals to combat hunger, recruit teachers, hire and retain state police officers and to establish a new state "climate change bureau" with 15 employees that would help reduce greenhouse gas emissions.
"These are investments that take us beyond the status quo, beyond decades of unnecessary austerity" said Lujan Grisham, alluding to her Republican predecessor.
Lujan Grisham also called for $50 million in spending to create a training academy for the film and media industries that would be run by a consortium of existing state colleges and universities.
General fund spending under the legislative proposal would increase to $8.46 billion, while the governor's budget calls for nearly $8.45 billion. That's up from $7.46 billion for the current fiscal year that ends in June 2022.
Under the Legislature's budget blueprint, spending on public education alone would increase by more than 12%, or at least $410 million.
The state would funnel an additional $243 million to support Medicaid health care for the needy as the federal government winds down pandemic-related subsidies to the insurance program for people living in poverty or on the cusp. Medicaid enrollment has surged across New Mexico amid the economic disruption of the pandemic.
Public schools would be required to extend classroom learning time amid resistance from many teachers and parents, under the Legislature's budget plan. At the same time, schools would get new flexibility to design their own mixture of extended school hours and additional calendar days.
The Legislature's budget and accountability office has assembled extensive research showing that extending the school calendar or daily classroom time without switching teachers can lead to lasting academic advancement among students.
New Mexico's education system routinely ranks last in the U.S. amid high rates of childhood poverty.
Lawmakers are seeking to resolve a court ruling that the state fails to provide adequate educational opportunities to poor and minority students and those with disabilities.
The state budget plan allocates $180 million to address educational shortcomings identified in the litigation, shifting more spending toward schools with high concentrations of "at-risk" students.
The state's surge in income is linked primarily to the oil and natural gas industry and surging petroleum production in the Permian Basin that overlaps southwest New Mexico and western Texas.
Monthly earnings from natural resources development on state trust lands set a new record for December, adding $141 million to a permanent fund that uses investment returns to underwrite spending on public schools, hospitals and universities.
The budget proposals leaves room for a possible reduction in current rates for gross receipts taxes, which add a charge on top of sales and business-to-business transactions. The tax currently varies from about 5% to more than 9% depending on local taxation.
Legislators indicated that a tax rebate proposal is likely, without further details.
Both budget plans set aside money equal to at least 30% of annual spending obligations — a hedge against any economic turmoil including a possible collapse in world oil prices and local petroleum production.
Democratic State Rep. Patricia Lundstrom of Gallup, chairwoman of the Legislature's lead budget-writing committee, said that it's the right time to boost spending with precautions.
"At this point, we feel that it's just right, and it's because we have a 30% reserve," she said. "That's just the way we roll."
Ex-New Mexico tax employee pleads guilty to money laundering -Associated Press
A former New Mexico Taxation and Revenue employee has pleaded guilty to wire fraud, identity theft and money laundering.
Prosecutors say 45-year-old George Martinez of Albuquerque was indicted by a federal grand jury last March. They say Martinez pleaded guilty yesterday to 42 counts each of wire fraud and aggravated identity theft and six counts of money laundering.
According to the indictment, Martinez was accused of using his position as a unit manager at the New Mexico Taxation and Revenue Department to fraudulently alter tax refunds and direct nearly $690,000 dollars to bank accounts that he controlled between May of 2011 and July of 2018.
Prosecutors say Martinez faces up to 32 years in prison when he's sentenced.
Most New Mexico students back in class amid virus surge - By Cedar Attanasio and Susan Montoya Bryan Associated Press
Only a couple of school districts and a handful of individual schools in New Mexico are pausing in-person learning for a week amid rising COVID-19 cases as state health officials remain hopeful that the latest surge brought on by the omicron variant will begin to ease within a month.
New Mexico's largest districts have plans aimed at keeping kids in the classroom this semester, and top health officials said during a briefing Wednesday that the classroom is probably the safest place for children given that it's an environment where they have to wear masks and keep their distance from one another.
Health and Human Services Secretary Dr. David Scrase acknowledged that given the experience of other states, the challenge might be staffing shortages that could force schools to return to remote learning until the peak is over.
"If omicron is as narrow a peak as we're hoping it is, that could be four to six weeks. And if we can get to the other side of it, that would be good," he said.
Like other states, New Mexico is seeing more cases due to the contagious nature of the omicron variant and Scrase said the potential effect on schools is a constant topic during the state's planning and modeling meetings.
He added that New Mexico schools have atest-to-stay program and availability is a concern given the recent rush on tests.
Few school districts offered testing on campus at the beginning of the fall semester, but some now offer them every weekday, including many schools in Las Cruces in southern New Mexico.
"Our goal is to keep schools open and keep kids in school," Las Cruces Deputy Superintendent Gabe Jacquez said at a school board presentation Wednesday.
The state's largest school districts like Albuquerque, Santa Fe and Las Cruces remain near or at full capacity for in-person learning. Officials have said case counts among students remain low compared to last spring when school reopened and few students were vaccinated.
Now, state data shows 17% of 5 to 11-year-olds and more than 57% of those 12 to 17 have completed their primary vaccination series. Overall, nearly 65% of all New Mexicans are vaccinated and more than 579,800 residents 16 and older have received boosters.
Jacquez said that in the county surrounding Las Cruces, more than one-third of children and around 80% of adults are fully vaccinated. School officials are sponsoring vaccine drives for students and staff, including boosters for adults in the coming week.
State health officials reported an additional 2,514 COVID-19 cases on Wednesday. Overall, about 17% of New Mexico residents have been infected, with nearly 6% of cases resulting in hospitalization and 1.6% ending in death.
Scrase said the death rate so far is about 12 times that of influenza but that early data seems to indicate less severe illness with the latest variant and he's hopeful that subsequent variants continue on that trajectory.
The state plans to begin distributing the first of 35,000 tests to socially vulnerable communities soon and people will be able to report the results of their home tests to the Health Department beginning Thursday.
Pattern Energy completes New Mexico wind project - Associated Press
A California-based renewable energy company says work is complete on four wind farms in New Mexico that total more than a gigawatt of capacity.
Pattern Energy officials announced Thursday that the Western Spirit Wind project has started commercial operations. The company had billed it as the largest single-phase construction of renewable power in the U.S.
The wind farms span three counties in central New Mexico and while electric consumption varies by state and the size of homes, company officials have that Western Spirit's generating capacity can provide enough electricity to meet the needs of about 365,000 homes.
Power purchase agreements already are in place to serve several California utilities, including the Los Angeles Department of Water and Power and the city of San Jose. Some of the electricity will also serve customers in New Mexico.
Western Spirit is projected to provide nearly $3 million per year in new property tax revenues for Guadalupe, Lincoln and Torrance counties and the two school districts that encompass the area over the next 25 years. Pattern Energy also plans $6 billion in wind energy and related infrastructure projects in New Mexico over the next decade that will net more tax revenues.
Pattern CEO Mike Garland said in a statement that the Western Spirit project generated over 1,100 construction jobs during the 15 months that work was underway. More than 50 workers will operate and maintain the wind facilities going forward.
"Western Spirit Wind is a groundbreaking mega-project that demonstrates large-scale renewables can be developed and built in the United States," Garland said. "These projects create significant job opportunities and local economic investments."
The transmission line that connects the Western Spirit wind farms took much longer to build than installing the wind turbines. It was about 11 years before all the federal, state and local permits were in place, and officials have said that streamlining the process for transmission approval will be key to ramping up renewable energy development in remote areas like eastern and central New Mexico as more utilities face zero-carbon emissions mandates.
In New Mexico, investor-owned utilities have to be carbon-free by 2045.
New Mexico regulators work on rules for new solar program - By Susan Montoya Bryan Associated Press
The New Mexico Public Regulation Commission has until April to finish crafting rules for the state's new community solar program, and the public has just a couple weeks left to weigh in.
The commission has held several workshops and meetings over the past year as part of the process. They were set to hear from members of the public Thursday, but only two people signed up. Commission staff said most interested parties have submitted comments in writing.
Under legislation approved in 2021, the commission was charged with creating a framework for community solar programs. That includes a cap on how large the programs can be within each utility and other requirements for utilities, developers and subscribers.
Community solar projects open the door for households and businesses that don't have access to solar because they rent, don't have the rooftop space or can't afford the upfront costs of a photovoltaic system. Instead, developers build small, local solar facilities from which customers can subscribe and receive credit on their electricity bills for the power produced from their portion of the solar array.
Advocates say their goal is to ensure all communities that want access to renewable energy can connect to community solar, especially low-income households and underserved areas.
Under the legislation, 30% of electricity produced from each community solar facility must be reserved for low-income customers and low-income service organizations.
Ona Porter, president and CEO of Prosperity Works, said during Thursday's hearing that her Albuquerque-based nonprofit has partnered with community groups to get the word out about existing energy efficiency programs over the past couple of years. She said the challenges revolve around building trust, combatting misinformation and addressing costs.
She said most families her group works with have annual incomes of $25,000 or less and can't benefit from tax rebates or wait to get reimbursed for any out-of-pocket expenses. She suggested that a fund be developed so people could subscribe to community solar at no cost.
Porter said regulators should also think about ways for low-income residents to participate in training and the renewable energy workforce as the state looks to address the affects of climate change by mandating more clean energy.
"We think this is really a huge opportunity," she said.
More than 40 states have at least one community solar project online, with more than 3 gigawatts installed through the third quarter of 2021, according to the Solar Energy Industries Association. The industry group estimates that the next five years will see the community solar market add more than 4 gigawatts nationwide.
Electricity consumption can vary by state and the size of a home, but 1 gigawatt would be enough to power roughly 10 million 100 watt light bulbs.
Bernalillo County reports suspected ransomware attack -Associated Press
Bernalillo County says it has discovered a suspected ransomware attack directed at its computer systems, prompting the government of New Mexico's most populous county to take affected systems offline and to close most county buildings to the public on Wednesday.
Public safety agencies such as the sheriff's office and the fire and rescue department were operating normally by using unspecified ""backup contingencies" but the Metropolitan Detention Center canceled inmate visits Wednesday, according to a county statement.
County spokesman Tom Thorpe told The Associated Press that the suspected attack meant that county officials couldn't access the affected systems.
Thorpe said he wasn't aware of any demand being received by the county and that officials are checking the county's computers systems for various departments to learn more about the suspected attack.
Bernalillo County includes Albuquerque, New Mexico's most populous city. The county has a population of 676,000, including 106,000 people who live in unincorporated areas.
Navajo leader OKs $557M in virus relief funds for members -Associated Press
Navajo President Jonathan Nez has signed legislation to provide $557 million in hardship assistance to tribal members amid the coronavirus pandemic.
Nez approved the bill late Tuesday to send $2,000 checks to adult tribal members and $600 for each child using federal virus relief funding. The Navajo Nation doesn't issue per capita payments to tribal members, which made the widespread financial assistance rare and highly anticipated.
Nez urged tribal members to use the money responsibly, including to help the elderly, students and veterans or pay outstanding bills.
"Remember, we're not out of this pandemic yet," Nez said Wednesday morning. "So don't go and spend all this money. Put some aside, the pandemic is still here. Plan."
Later Wednesday, Navajo Nation health officials reported 168 new confirmed COVID-19 cases along with two more deaths. The numbers pushed the totals to 41,971 cases and 1,592 deaths on the vast reservation that covers parts of Arizona, New Mexico and Utah since the pandemic began.
The Navajo Nation Council voted to tap some of the $2.1 billion the tribe received from the American Rescue Plan Act that President Joe Biden signed last year. The money will be sent automatically to tribal members who applied a year ago for relief funds under a previous round of hardship assistance.
An estimated 250,000 adults each will receive $2,000 payments, and the parents or guardians of 95,000 tribal members under the age of 18 will receive $600 for each child.
Nez previously approved $300 checks for tribal residents age 60 and older who showed they needed extra assistance under separate legislation. The tribe was up against a deadline to spend the $16 million it had from the federal Coronavirus Aid, Relief and Economic Security Act approved by former President Donald Trump, or have it reverted to the federal government.
The Navajo Nation also used CARES Act funding to send the first round of hardship assistance payments.
Navajos clamored to enroll or fix their records to apply for the funding, boosting the tribe's rolls from about 306,000 members to nearly 400,000. That figure briefly put the Navajo Nation in the No. 1 spot for enrollment among all 574 federally recognized tribes before being topped again by the Cherokee Nation in Oklahoma.
The tribe paid out about $360 million to 312,000 applicants, according to the tribal controller's office said. Adults received up to $1,350 and children up to $450. Other tribes around the country also used federal relief funding to issue hardship payments to tribal members.
Navajo leaders say they now will turn to funding infrastructure projects, including electricity, broadband, water lines and roads.
Former New Mexico spaceport CFO alleges fraud, retaliation - By Susan Montoya Bryan Associated Press
The former chief financial officer for the New Mexico Spaceport Authority filed a whistleblower lawsuit alleging that he was forced to resign after raising concerns about financial malfeasance that he said cost taxpayers millions of dollars.
Among numerous allegations, Zach DeGregorio said in the lawsuit filed Dec. 28 that top officials committed securities fraud by refinancing spaceport gross receipts tax bonds under false pretenses.
He also said secret meetings held between state officials and Spaceport America's most notable tenant — Virgin Galactic — may have resulted in violations of the state's anti-donation law, which restricts government donations to personal and private-sector enterprises as a precaution against graft and corruption.
The civil complaint filed in state district court lists numerous officials, including Gov. Michelle Lujan Grisham, Economic Development Secretary Alicia Keyes, officials with the New Mexico Finance Authority and members of the Spaceport Authority board.
Nora Meyers Sackett, the governor's spokeswoman, said her office will not comment on pending litigation. Other officials did not immediately respond Wednesday to messages seeking comment about the allegations.
DeGregorio, a certified public accountant who had worked for the spaceport authority for more than four years, posted a video statement about his lawsuit on social media. He said he wanted to set the record straight.
"I believe one person can make a difference in this world and I believe it's important to stand up for what is right," he said.
The lawsuit also details alleged procurement violations and retaliation that DeGregorio faced after first reporting his concerns to officials in 2020. DeGregorio asked for a jury trial for the lawsuit, which seeks back pay, lost future earnings and other financial damages, including punitive damages.
DeGregorio's initial complaints triggered a 2020 investigation into allegations of financial mismanagement, ethical violations and abuse of power by former spaceport director Dan Hicks, who was fired in 2021. Hicks has never commented publicly about the claims.
New Mexico Attorney General Hector Balderas' office said Wednesday that prosecutors have reviewed the financial oversight concerns raised during Hicks' tenure and directed the Spaceport Authority to strengthen its governance and oversight structures to ensure the appropriate use of taxpayer dollars.
"However, no conclusion has been reached on any related criminal matter at this time and we are still evaluating the new allegations contained in the complaint and will respond accordingly," the office said in an emailed statement to The Associated Press.
DeGregorio also listed Balderas and State Auditor Brian Colón as officials who were part of what he described as a cover-up involving problems at the spaceport. Colón noted that only the state of New Mexico was named as a party in the civil complaint.
DeGregorio said the 2020 investigative report prepared for the state auditor's office was flawed.
That report alleged DeGregorio assisted Hicks in circumventing procurement policies and evading internal controls. However, DeGregorio in his complaint stated that Hicks had repeatedly tried to get him to skirt the rules and that other spaceport employees were too scared to speak up.
DeGregorio alleged that the procurement violations continued after he resigned.
DeGregorio in the lawsuit accused Keyes — who also was appointed by Lujan Grisham as chair of the spaceport authority board — of ordering him to alter a report that projected the spaceport's economic impact at almost $1 billion between 2016 and 2025. He said he refused and reported the matter to the governor's office.
Sierra and Doña Ana counties both enacted local taxes to help repay bonds that funded construction of Spaceport America, a desert outpost just north of Las Cruces that is designed to support a range of aerospace businesses — from commercial tourism ventures like those planned by Virgin Galactic to vertical rocket launches.
DeGregorio accused state officials of using the Spaceport Authority to refinance the gross receipts tax bonds with the New Mexico Finance Authority under false pretenses.
He said rather than refinancing in the public market, the bonds were refinanced at higher interest rates and under poor loan terms that included a requirement for a large reserve fund.
DeGregorio alleges that Keyes was attempting to perform a sole source refinance directly with the New Mexico Finance Authority rather than putting the refinancing out to bid. If the bonds would have been refinanced in the public markets, he claimed that the Finance Authority would be required to give back millions of dollars in reserve funds and would not receive any future spaceport tax revenues.
According to the lawsuit, the Finance Authority collected the tax revenue from the two counties and repackaged it into low interest loans to provide to other projects in other locations around New Mexico.
Free masks and test kits may be in the future for New Mexicans – Dan McKay, Albuquerque Journal
High quality masks, and covid-19 at home test kits all provided to the public for free–-that's according to a 60 million dollar plan pre-filed for the upcoming legislative session.
The Albuquerque Journal reports 10 million would be set aside for KN95 or equivalent masks, and 50 million would be provided for test kits—the money would be coming from federal funds allocated to New Mexico for covid relief.
With the recent spike in cases from the omicron variant, there has been a push for increased testing options and better quality personal protective equipment.
The positive test rate has jumped 8 points from last week to almost 20 percent for the last seven days.