Investments are projected to be NM’s top revenue source in 15 years - By Nash Jones, KUNM News
Investments are likely to take over as New Mexico’s top revenue source in the next 15 years, according to new projections.
The state’s Consensus Revenue Estimating Group presented its long-term outlook on state government income to lawmakers on the Legislative Finance Committee Tuesday.
Chief Economist with the Taxation and Revenue Department Lucinda Sydow reviewed how investments in the state’s permanent funds are expected to grow.
“It starts to exceed income taxes in 2030,” she said. “And then, by 2040, this forecast would have it exceed gross receipts tax revenue, becoming the No. 1 source of revenue for the general fund.”
The permanent funds will distribute more than $2 billion this fiscal year, according to the New Mexico Department of Finance and Administration. By 2030, that could more than double to $4.7 billion.
It is not just tax revenue the investments are expected to surpass — but the state’s biggest money-maker, oil and gas revenue, as well. The upturn in investment income comes along with an expected downturn in fossil fuel production.
DFA Chief Economist Leonardo Delgado presented trend lines to the lawmakers.
“The state is currently on the upslope of these curves,” he said, “but we do see that there’s a leveling-off and a plateauing towards 2029 or 2030 for New Mexico oil production.”
All presenters cautioned lawmakers not to overly rely on long-term forecasts, as they can change over time.
City Council paves the way for new film studio- By Elizabeth McCall, City Desk ABQ
Albuquerque is one step closer to being the home to a new film studio after city councilors approved millions for the project during their meeting Monday.
Councilors unanimously passed an ordinance that would issue $7 million in city and state funds for a new film and television production campus for Mesa Film Studios LLC on Albuquerque’s West Mesa near Double Eagle II Airport.
While three residents urged councilors to vote down the bill arguing that there was no tribal consultation on the project, Economic Development Director Max Gruner confirmed the city went through the proper tribal consultation process.
Manny Manriquez, deputy director of Innovation and Commercial Development for the city’s Aviation Department, said they have followed the rules in terms of tribal notification and are working with Terry Sloan, the city’s intergovernmental tribal liaison.
“We intend to do this outreach and talk to as many of the tribal groups as we are able to before Mesa Film Studios’ site plan goes to the [Environmental Planning Commission] later on this fall,” Manriquez said. “We have an open-door policy.”
Manriquez also said they are scheduling meetings with Laguna Pueblo, Isleta Pueblo, Sandia Pueblo and other tribal entities.
Read more about tribal consultation here.
The project would be more than 285,000 square feet across 60 acres.
The city will issue $1 million in Local Economic Development Act (LEDA) funds and the remaining $6 million will come from state LEDA funds.
Bernalillo County is set to issue $186 million in industrial revenue bonds for the construction project.
Read more about the project here.
Funding for new solar project
Councilors also unanimously passed an ordinance that would issue $11 million for a new Ebon Solar LLC facility in Mesa Del Sol.
The city will provide $1 million in LEDA funds and the remaining $10 million will come from state LEDA funds.
Crackdown on vacant property owners, sidewalk sleeping on pause – By Elizabeth McCall, City Desk ABQ
Owners of vacant properties in Downtown Albuquerque will not see increased registration fees and sleeping on sidewalks in the area is still allowed — for now.
After dozens spoke Monday night against an ordinance that aims to tackle an increased number of vacant buildings and create new rules for sidewalks in Downtown, the City Council voted 8-1 to defer the bill until the next meeting.
The Downtown Vacant Buildings and Properties Ordinance — sponsored by Councilor Joaquín Baca — proposes putting more pressure on owners of vacant properties by requiring annual maintenance licenses, property inspections and vacancy registration fees.
The ordinance also includes “no obstruction zones” to prevent people from blocking sidewalks in the “Downtown Center.” The zones would prohibit “wrongful use of sidewalks,” which includes “sleeping, sitting, kneeling, crouching or lying down” and carrying banners or signs on sidewalks.
Albuquerque resident Diane McCash told councilors the ordinance reminds her of an “upscale club with a dress code meant to exclude those of us unable or unwilling to meet their standards.”
“What about my right to peacefully protest?” McCash said. “This ordinance has the potential to price people out of these rights, this free expression, but my free expression, my free speech, pales in comparison to our unhoused community members’ right to existence.”
However, some people spoke in favor of the ordinance.
Lisa Curtis, an Albuquerque lawyer, told councilors she bought the State Theater Building in a dilapidated state and argued the proposal would actually help those who are unhoused.
“The vacancy provision is right, the fine provision is right, the obstruction section is right,” Curtis said. “I was a special prosecutor for homeless women that were raped Downtown. We’re not doing enough to take care of them, leaving them here is not helpful. “
After City Councilor Nichole Rogers proposed to amend the ordinance by removing the “wrongful use of sidewalks,” councilors realized there were multiple amendments that proposed something similar.
Councilors decided not to vote on the ordinance until their Oct. 7 meeting — that way there can be a summary of the amendments to avoid confusion and redundancy.
The ordinance states that vacant buildings and properties are a health and safety concern, a “public nuisance” and a “private nuisance” to neighboring properties that may lose retail and property value because of the unmaintained vacant properties.
The proposed fees would be based on the square footage of the property and how many years the property has been vacant. Owners of vacant properties would be required to pay whatever their square footage base cost is multiplied by how many years their property has been vacant.
The money collected will be used for “funding enforcement activities” such as property inspections, according to the ordinance.
Read more about vacant buildings Downtown here.
NM lawmakers get training to hire district staff - By Austin Fisher, Source New Mexico
About 16 percent of lawmakers have taken the required training to build field offices and hire staff to work in the places they represent across the state.
Lawmakers can choose whether to hire a district legislative aide. If they do, they must go through human resources training, according to policy adopted in June by the Legislative Council, the committee made up of representatives and senators that oversees all lawmaking between sessions.
Eighteen lawmakers have gone through the training so far, newly appointed Legislative Council Director Shawna Casebier said at a virtual meeting on Monday. There are 112 total seats in the House and Senate.
Fourteen district legislative aides have been hired, along with one district office manager, Casebier said. She did not specify which lawmakers hired them.
According to the policy, district legislative aides will be responsible for correspondence, scheduling, policy research, local constituent services, organization of nonpartisan town halls, and other duties assigned by the lawmaker as appropriate. Aides are explicitly prohibited from any election or campaign related work.
Any lawmaker without opposition in the upcoming elections, became eligible on Sept. 1 to hire district legislative aides, said outgoing Legislative Council Service director Raúl Burciaga during a previous meeting.
If the incumbent in a contested race wins in November, they can start hiring staff Dec. 1. Newly elected members will be able to hire in April 2025, Burciaga said.
A working group made up of Legislative Council Service staff is meeting to address questions that have come up in the rollout of lawmakers’ district offices, Casebier said. The group is considering potential revisions to the legislative district office policy, she said.
The Legislative Council’s next meeting is tentatively scheduled for Oct. 25. Casebier said she intends to have some recommendations for the Council then.
Sen. Antoinette Sedillo-Lopez (D-Albuquerque) said she wanted lawmakers to be able to use their district staff when the Legislature is insession as a legislative aide in Santa Fe, as well.
“I understand that’s not allowed, and I see that’s a real problem,” Sedillo-Lopez said. “Since I’m working with that individual on legislation, the idea of training a new person during the session seems kind of silly.”
Casebier said the working group is looking at the issue. Session staff are supposed to be hired by the chief clerks of the House and Senate, she said, and there is limited office space in the Roundhouse.
“To date, we have discussed that (district legislative aides) will not be working as session staff, in particular, that the position is focused on work in the district, but it’s certainly an ongoing discussion as part of those working group discussions,” Casebier said.
Sedillo-Lopez said it does not make sense to hire one legislative aide at the district level and hire a second one for the session.
“One idea that was thrown out was to have the staff resign from this position and then get hired on — which again, seems kind of silly to me,” Sedillo-Lopez said.
The Legislative Council Service has hired new staff to support current operations and additional support needed for district offices and district legislative aides, Casebier said.
The new hires include a web developer, a network administrator, two computer specialists and four new human resources workers, she said. The Legislative Council Service wants to hire two additional accounting staffers this fall, she said.
Rep. Dayan Hochman-Vigil (D-Albuquerque) asked when there will be guidelines to rent and furnish district offices.
Casebier said there isn’t a specific guide, but one is in the works.
She said current policies require the Legislative Council Service to approve leases and ensure any furniture is properly purchased or leased under the state’s procurement code.
The policy lets lawmakers pick where their district office will be, but requires them to consider public spaces before they seek out a space in the private market.
House Speaker Javier Martinez, who chairs the council, encouraged lawmakers to look for places they can rent for free like community centers, senior centers, universities or colleges, especially those representing urban areas.
“That’s not an official policy necessarily but I would certainly encourage us all to look for those options before we enter into any type of expensive lease agreement,” he said.
Poll shows Heinrich with a big lead over Domenici in US Senate race – Albuquerque Journal, KUNM News
New Mexico Democratic U.S. Sen. Martin Heinrich has a double-digit lead over his Republican challenger, Nella Domenici, according to a recent Albuquerque Journal poll.
Half of those surveyed said they planned to vote for Heinrich over Domenici’s 38% support. Nearly 10% of those surveyed said they weren’t sure who’d they’d vote for, and an even smaller minority — 4% — said they didn’t support either candidate.
The Journal reports those who identified as “moderate” were more likely to back Heinrich. The sitting Senator also received higher support than Domenici among women and Hispanic voters. Higher educational attainment also correlated with being more likely to vote for Heinrich.
Domenici had the strongest showing in eastern New Mexico, where she drew the support of 60% of likely voters in the deeply red oil and gas region. She also beat out Heinrich in the northwest, with just under half of those surveyed saying they planned to vote for her.
The Journal surveyed over 530 likely voters by phone earlier this month. These were New Mexicans who either voted in one of the last two general elections or registered since the 2022 election and said they were likely to vote this year.
How Project 2025 could lead to worse climate impacts while reducing support for communities - By Hannah Grover, New Mexico Political Report
Imagine a New Mexico where wildfires, extreme heat, flooding and drought are more common and more devastating, yet the impacted communities have fewer resources and support from the federal government in the aftermath of those disasters.
That is what climate advocates say could happen should Project 2025 be implemented.
Project 2025 is a series of policy proposals released by the Heritage Foundation. These are policies that the Heritage Foundation would like to see implemented should former President Donald Trump return to power. While Trump has tried to distance himself from the proposal, during the first year of his presidency, he implemented about two-thirds of the policies that the Heritage Foundation was pushing at the time.
Project 2025 calls for rolling back initiatives aimed at reducing climate change, increasing extraction of fossil fuels and reforming an agency responsible for aiding in disaster recovery.
These policy proposals could have devastating impacts on New Mexico, where the impacts of climate change are already acutely felt.
Tom Solomon, co-founder of 350 New Mexico, describes Project 2025 as a “pretty horrific document” and said that it could have wide-reaching consequences, including climate consequences.
“I think reading the document, it’s a pretty scary blueprint for the unraveling of, you know, the foundation of our democracy and the foundation of our conservation and climate commitments as a country,” Molly Taylor, the chief operating officer of Conservation Voters New Mexico, said.
INFLATION REDUCTION ACT
Taylor said Project 2025 calls for “a number of pretty significant reforms” including many that would reduce the federal government’s ability to act on climate change and move forward with climate policies.
That includes gutting President Joe Biden’s Investing in America Agenda and rolling back funding from the Inflation Reduction Act, Biden’s signature policy achievement which provided millions of dollars of federal investment into the state and led to expanded manufacturing particularly in the renewable energy sector.
“On the ground, there are a number of projects that have bubbled up and have been funded, even in rural parts of the state,” Taylor said about the Inflation Reduction Act’s impacts.
Those projects include helping small businesses install solar panels on their roofs and attracting new manufacturing companies to the state.
Since the Inflation Reduction Act passed, companies nationwide have invested more than $124 billion in clean energy projects. The possibility that Trump could rollback the Inflation Reduction Act or make changes to some of the tax credits embedded in the law has already caused concern for major companies like Samsung and Volkswagen. Trump has said that he will pull back any of the unspent Inflation Reduction Act funds should he be elected.
Project 2025 calls the Inflation Reduction Act and the bipartisan infrastructure law, or Infrastructure Investment and Jobs Act, “massive spending bills” that “established new programs and are providing hundreds of billions of dollars in subsidies to renewable energy developers, their investors, and special interests.” The authors call for a future conservative president to rescind all unspent money from those two laws.
Solomon said the Inflation Reduction Act paved the way for announcements like Maxeon Solar and Ebon Solar coming to Albuquerque.
“Those are thousands of jobs building solar panels, but they are dependent upon tax credits and other incentives that are embedded in the Inflation Reduction Act,” he said.
But even if Republicans do not pass any legislation rolling back the funding from the Inflation Reduction Act, the money is administered by federal agencies.
“They could very easily just say, ‘all of those incentives for clean energy production, they’re just going to be stopped. And anything that you counted on to benefit clean industries growing and expanding in the country, including in New Mexico, it’s just going to come to an end,’” Solomon said.
He said changes to funding from the Inflation Reduction Act or to incentives could essentially pull the rug out from under those companies and a lot of the investment in New Mexico, particularly in the clean energy sector, could come to a halt.
The Inflation Reduction Act doesn’t just benefit companies. It also created some new home energy rebates that will help homeowners purchase energy-efficient appliances, thus lowering both their utility bills and their carbon footprint.
Taylor said without the funding from the Inflation Reduction Act, people will face more expensive utility bills and impacts to their health.
“Something as simple as just being able to have access to resources to buy a new appliance, an electric appliance, won’t be on the table anymore,” she said.
INCREASED EXTRACTION
Project 2025 calls for increased oil and gas production, much of which would take place in New Mexico and Texas’ oil-rich Permian Basin. Project 2025 states that the Permian is “second only to Alaska in petroleum potential.”
Project 2025 would accelerate extraction in the Permian while also removing regulations.
“They would do more drilling on public lands,” Solomon said.
He said the communities across the country that are already feeling the health consequences of living near oil rigs would face even worse impacts.
Solomon highlighted an analysis published by the United Kingdoms’ based group Carbon Brief in March. This analysis found that a Trump presidency could lead to an additional 4 billion tons of emissions from the United States by 2030, which would in turn lead to $900 billion in damages related to climate change worldwide.
The analysis states that the 4 billion tons of emissions would more than negate the emission reductions that have occurred over the last five years thanks to new wind, solar and other clean energy projects.
“Project 2025 also talks quite a bit about an all-of-the-above energy stance and position for the nation,” Taylor said. “However, it also heavily leans toward fossil fuel production, nuclear production, kind of leaning into more of the energy sources that are contributing significantly to the climate crisis.”
Cloe Dickson, communications manager with Conservation Voters New Mexico, said the state’s role in oil and natural gas extraction means that what happens at the federal level could have huge ramifications for New Mexico.
“There are thousands of abandoned oil and gas wells that have yet to be cleaned up and are not only contributing to climate change, but also contributing to significant health risk for the communities that live within the Permian and the San Juan basins,” she said.
The bipartisan infrastructure law that is targeted by Project 2025 provides funding to clean up those orphaned and abandoned wells.
Dickson warned that increasing oil and gas development creates a risk for future abandoned wells and, because of the gap between the bonding requirements and the actual cost of cleaning up those sites, New Mexico taxpayers could be left footing the bill.
LIMITED TIME TO ACT
Delaying the transition to clean energy could have major impacts both for present and future generations worldwide.
Carbon Brief states that the U.S. election this year is crucial if the world hopes to limit global warming to 1.5 degrees Celsius.
One analysis, the MCC Carbon Clock, says there could be fewer than five years until the planet reaches the threshold for an additional 1.5 degrees Celsius of warming and 22 years until the concentrations of greenhouse gasses in the atmosphere ensures that the world will experience 2 degrees Celsius of warming.
But Project 2025’s policies could accelerate that.
“Instead of 22 years from now, it might be 12 years from now that would have dire consequences for the planet and for New Mexico,” Solomon said.
Already New Mexico is one of the fastest warming states in the country and is seeing devastating impacts from climate change. Solomon highlighted this year’s wildfires in Ruidoso followed by the flooding.
“Everyone in our community across the state has been impacted by the record heat,” Taylor said.
She said that record heat has increased in severity to the point where basic infrastructure including schools and community centers are struggling to keep up with the needs.
“We have students sitting in classrooms that in the summer get up to 90 degrees or more, which makes learning really difficult,” she said.
That also creates challenges for unhoused people who need access to cooling centers and other resources.
She spoke about measures the state and federal government have taken to cut emissions and prepare for a warmer future.
“Project 2025 proposes that we undo all of that progress and shift back to the way things were before we took meaningful climate action, and that will derail any chance or hope of us just being able to prepare and be ready for the shift that we’re already in and address the worst impacts of the climate,” Taylor said.
LESS ASSISTANCE AFTER DISASTER STRIKES
While disasters like Ruidoso experienced this year will become more common thanks to climate change, the assistance the federal government provides would decrease under a Project 2025 agenda.
Project 2025 calls for reforming the Federal Emergency Management Agency and eliminating the Small Business Administration’s disaster loan program that helps communities rebuild.
Project 2025 also calls for FEMA to raise the per capita indicator for damages, which would make it harder for states and localities to qualify for aid following a disaster declaration.
Project 2025 also calls for reducing the amount of money the federal government provides so that states would be responsible for up to 75 percent of the costs of responding to catastrophic disasters. Currently, the federal government pays up to 75 percent of the costs and the states pay the remaining 25 percent.
FEMA also oversees the National Flood Insurance Program. Project 2025 describes this as the federal government providing insurance at a subsidized rate.
“The NFIP should be wound down and replaced with private insurance starting with the least risky areas currently identified by the program,” Project 2025 states.
Solomon said NFIP is needed because private insurance determined it was economically unfeasible to insure homes in flood-prone areas.
Solomon said ending NFIP would mean that the people in the Ruidoso area who lost their homes to fires and floods may not be able to rebuild. He pointed out how even getting home insurance is becoming harder in disaster-prone areas.
“With climate change, insurers are among the first to be impacted,” Solomon said. “They are the ones that have to cover the impacts of climate disasters and to pay for rebuilding it.”
Softening the workforce shortage squeeze in Albuquerque - By Damon Scott, City Desk ABQ
Construction projects across the state are booming, but contractors say finding enough skilled laborers to fill positions is a chronic challenge. The workforce shortages often cause project delays and increased costs — issues that have motivated officials to propose a fix in Albuquerque.
The Apprenticeship Empowerment ordinance would require contractors to dedicate 15% of a job’s labor hours to apprenticeships on city construction projects that cost more than $1 million. Contractors that voluntarily commit to 25%, would receive a preference in the bidding process for city construction projects.
“We’ve been looking for ways to increase job training and job pathways,” City Councilor Tammy Fiebelkorn said. “We know that one of the major problems that we have in our city is a lack of pathways out of poverty.”
She’s the co-sponsor of the bill with City Councilor Dan Champine. Fiebelkorn said the idea of increasing apprenticeships is one that kept rising to the top of a list of viable options.
“The number one thing I hear is that young people in particular don’t see a way to get those jobs,” Fiebelkorn said. “It’s a way to get more job training.”
Apprenticeships are the first step to higher wage journeyman positions in the construction trades, such as electricians, plumbers, carpenters and equipment operators.
Brian Condit, the executive director of the New Mexico Building Trades Council, said the proposed measure is welcome news.
“The demand for construction craft professionals is just going crazy,” he said. “I’ve never seen it this busy.”
The Trades Council represents a consortium of 15 construction craft unions. Condit said it’s clear that young people aren’t entering the trades at a sufficient clip to replace those who will be retiring soon. He said there are about 3,000 registered apprentices in the state out of 59,000 construction craft workers — less than 5%.
“The scary part is we know how many members we have that are approaching retirement age next year and the year after — 25% to 30%,” he said. “We’re playing catch up, but we can train our way out of this hole.”
Fiebelkorn said using apprentices can also benefit companies through reduced payroll costs and increased profits. She and Champine recently met with leaders of construction companies who said they were in support of the proposed bill.
“They were all pretty excited about this, because they see that we’re at a point where there’s a shortage of laborers,” Fiebelkorn said.
The proposed ordinance passed unanimously out of the Finance & Government Operations Committee last week with a “do pass” recommendation. It is scheduled to be voted on by the City Council at its Oct. 7 meeting.
Bernalillo County hosts online job fair Wednesday - By Nash Jones, KUNM News
Bernalillo County says it's looking to hire new people immediately, including nurses.
The state’s largest county is hosting a virtual job fair Wednesday, where it is looking to fill positions in behavioral health, corrections, IT, and natural resources. The county is also seeking RNs for its Youth Services Center, according to the announcement.
Attendees must register ahead of time to claim a spot at the online event, which they can attend using a computer, tablet or phone. The county says it will prioritize those who submit applications for specific positions beforehand.
During the virtual fair, participants will be able to interact directly with recruiters and hiring managers through text and video, according to the announcement.
In its announcement, the county touted its remote work options and benefits packages, including leave, health care and retirement plans.