Super Bowl Commercial Hits Close to Home
I watched the Super Bowl last night and while the game was quite good, the commercials were pretty lame overall. However, one commercial by Audi made an impact. If the greens have their way, this could come true:
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Economic Impact of New Mexico’s Pit Rule Explained
I (and I believe this is true for most economists) have always found the economic impact of taxes to be relatively straightforward. But regulations, particularly those pertaining to the environment, are a bit more difficult to figure out. After all, we all want a clean environment and environmentalists constantly remind us that regulations can push society and lead to resources being allocated to cleaning the environment.
This all leads me to the Pit Rules which have been adopted here in New Mexico. I have intuitively understood that the Pit Rule likely represented an overreach on the part of New Mexico’s regulators, but the ins and outs of drilling for oil and gas can be quite difficult to parse. So, I was pleased to see “Pit Rules Dry Up NM Drilling” which more clearly explained the economic impact of New Mexico’s pit rule than any analysis I’ve seen yet.
The article refuted Joanna Prukop, Former Secretary, New Mexico Energy, Minerals and Natural Resources Department, and her article, “Don’t Blame the Pit Rule…” Mr. Maxey, the author or the anti-pit rule piece displays far superior understanding of the oil and gas industry and how public policy impacts the migration of businesses between different political jurisdictions in a constant search for policies that are sensible.
I’m glad to see the oil and gas industry stick their necks out and oppose anti-business policies. Hopefully this is a trend that will continue and grow.
The Rise of Government Labor Unions
The Heritage Foundation blog had an interesting post about government labor unions. According to the blog, “2009 became the first year in American history that a majority of American union members work for the government.”
This is both unsurprising and troubling at the same time. First and foremost, while I have my concerns about the impact of private sector labor unions, the good news is that they ultimately benefit from private sector economic growth (just like the rest of us). To Government labor union members, however, the private sector economy is an irrelevant annoyance. They have absolutely no incentive to care.
Of course, as we have seen recently, government has continued to grow while the private sector is hurting and cutting back. Nowhere is that trend more prevalent than in heavily-unionized private sector industries where high-priced union labor unions have priced their members out of the market. Government knows no such check. That is why they are so dangerous.
New Mexico is an excellent case-study. As the Rio Grande Foundation has pointed out, our public sector work force is extremely bloated. And, as we see from recent efforts of the liberal House of Representatives to not cut government at all, the government labor unions (like AFSCME and The Albuquerque Federation of Teachers) have a very strong grip on New Mexico politicians.
I agree with Ellen Bernstein (just this once)
Ellen Bernstein is the radical left wing head of the Albuquerque Teachers Federation. She wrote an article in the Albuquerque Journal on the ongoing debate over the potential West Side split of Albuquerque Public Schools. She made the point that “there is no data showing school district size as a factor in student’s success.”
This is indeed the case. In fact, splitting districts, a topic which the Rio Grande Foundation is neutral on, is not the type of fundamental reform that is really needed in New Mexico. Rather, if we actually want to improve educational results in Albuquerque or anywhere else, it is Bernstein and her cronies that must be dealt with first. They (the teachers unions) are a primary obstacle to improved educational outputs.
The effort to split APS, while understandable given its broken nature, is not targeting the root problem. Instead, choice in the form of vouchers or tax credits (two different things), smaller schools, and merit pay and accountability for teachers will actually improve schools. Unfortunately, Bernstein and her allies oppose every one of these options.
RGF Looking for Capable Reporter to Cover New Mexico Government
The Rio Grande Foundation (RGF), New Mexico’s only free market think tank, is starting a new Capital Reporter project and is looking for an independent, self-starting journalist to cover state government, particularly issues with the state government in Santa Fe.
The idea behind this project is to cover tax, budget, and fiscal issues for an online newspaper. Currently, the paper is online at: www.capitolreportnewmexico.com.
We are hoping to expand operations with video, audio and written content with a capable reporter who can provide objective, factually accurate reporting in these formats for a Web-based audience.
This would be a full-time job, but schedule is flexible. Busiest time of year would be legislative sessions. Salary and benefits will be based on experience with a baseline and incentives based on quality content. We are a virtual office, so self-starter necessary.
Interested parties should send a resume and cover letter or statement of interest to:
HumanResources@RioGrandeFoundation.org
Santa Fe Opera does the right thing — Another “Pig Book” Success!
In case you haven’t noticed, New Mexico faces difficult budgetary times. Thankfully, the folks at the Santa Fe Opera seem to recognize this fact and have given back $1.3 million in taxpayer money that would have been used to build a recital hall. Maybe the folks at the Opera should try to instill this sense of fiscal responsibility in members of New Mexico’s House of Representatives, the leaders of which seem to have no clue that cutbacks are necessary.
Oh, and I would be remiss if I didn’t note that the Opera’s recital hall project was contained in our 2008 Piglet Book (check page 22). Chalk another victory up to Rio Grande Foundation efforts to expose wasteful and unnecessary spending.
New Mexico House budget needs to go back to the drawing board
According to Dan Boyd over at the Albuquerque Journal, House Speaker Ben Lujan has postponed the body’s vote on a $5.6 billion budget bill. Reason being, the House “progressives” (or socialists) want to add another potential tax hike to the mix in order to avoid making any tough decisions that could cut their beloved government programs. Instead, they’d rather push $400 million worth of tax increases on New Mexico taxpayers.
Thankfully, the Senate, led by stalwarts like John Arhur Smith remain opposed to massive tax hikes absent any real attempts to redress spending or make government more efficient (the House would cut spending by only 1 percent). Unfortunately, Governor Richardson seems to be willing to forfeit his title of “tax cutting governor” as he has sided with the House thus far. Thankfully, Republicans in both the House and Senate have remained opposed to balancing the budget based on tax hikes.
The House’s behavior is no surprise. They have a long track record of doing the Governor’s bidding and being to the left of him on tax and budget issues. The question that moderates in the House ultimately have to decide is whether they are facing a massive repudiation at the polls this coming November. Obama seems to have taken Republican Scott Brown’s upset victory in Massachusetts as an opportunity to double-down and attempt to pass his left-wing agenda. New Mexico’s House seems to be following the same tactic which I believe will ultimately lead to electoral despair.
For the time being, New Mexico hangs in the balance and the Atlases in the Senate dare not shrug!
Discussing Ethics Commission in NM Independent Forum
If you have never checked out the “Independent Forum,” I encourage you to check it out. Along with a handful of community leaders, I have been providing my own thoughts on various current-events issues, many of which are being considered by the Legislature in Santa Fe. This week’s forum question is on proposals for a “Ethics Commission.”
My thoughts are the first response (they typically are) so go ahead, put your own thoughts up there and if you agree or disagree, let me know: pgessing@riograndefoundation.org I’d be interested in your thoughts.
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NM Congressional District 3 Candidate Forum Scheduled
New Mexico’s free market think tank, the Rio Grande Foundation, is hosting a candidate forum for all current candidates – of both parties – for New Mexico’s 3rd Congressional Seat (currently held by Ben Ray Lujan).*
The forum will be held on Monday, February 22, 2010 from 6:00 to 8:00PM in the Jemez rooms of the Conference Center at Santa Fe Community College. The College is located at 6401 S. Richards Avenue, in Santa Fe. Admission is $5 payable at the door. Those who want to attend can send us an E-mail to: rsvp@riograndefoundation.org. Unfortunately, due to rules associated with this facility, no food or drinks will be available, but vending machines are available on-site.
This is not a formal debate format, rather it is an informal question and answer discussion that will allow average citizens, regardless of party affiliation, to “kick the tires” and find out more about the candidates who have declared for New Mexico’s highest offices. Attendees will have the opportunity to submit questions that help attendees determine each candidate’s stances on the issues and observe how they interact with the crowd.
The discussion will be moderated by Rio Grande Foundation president Paul Gessing. The event will be filmed by the Rio Grande Foundation with footage posted at: www.riograndefoundation.org. Media are encouraged to attend and cover the event.
School Choice Could Increase NM Graduation Rates 18%, Increase Tax Revenue
At least, that is how much a voucher system implemented in Milwaukee is estimated to have raised graduation rates in that city according to a new study. Now, does that mean we should adopt vouchers in New Mexico? Maybe not, but the fact is that choice is working where it has been tried. Tax credits would be another option and pursuit of the full-fledged reforms adopted in Florida is another option.
Based on a separate study, the annual impact from 3,352 more MPS graduates would include an additional $21.2 million in personal income and $3.6 million in extra tax revenue. Perhaps New Mexico could at least partially solve its budgetary problems through the aggressive adoption of school choice? One can only hope…after all, raising graduation rates and a healthier economy…that’s change I can believe in! The full report on Milwaukee’s school choice results can be found here.
