At the Rio Grande Foundation, we have always stated clearly that gasoline prices are set largely by the marketplace with several additional factors impacting them. If there were a “vast conspiracy” on behalf of higher gas prices, they would be kept high all the time and would be far higher than they are. Enjoy lunch with us and find out more details not only on our perspective, but what one of the top national experts and several local ones have to say on the issue.

You can bet that gas prices will rise again some day and the conspiracy theorists will be there to blame “big oil” and point fingers (usually at the wrong parties).

Of course, the kicker is that the Federal Aviation Administration (FAA) is picking up 85% of the cost, so the project will hardly cost us locals anything. There is so much wrong with this story.

1) PNM is raising rates in large part to pay for so-called “renewables” like solar in the first place.

2) The problem with federal programs like this one from the FAA is that it lulls people into thinking it is “free” money. Who could be against having the Sunport project paid for by taxpayers around the country? It’s not “our” money! If this project were funded locally, we’d at least have an accounting for the costs and benefits, but not when the FAA is picking up the tab.

3) Oh, and solar is the most expensive way to generate electricity. No one is “saving” money on this deal.

And then there are articles by those who have seen behind the magic curtain like this one. Certainly, there are aspects of accountability measures like testing that can lead to incentives for teachers to “teach to the test,” cheat, or simply focus their efforts on those students most likely to help them generate positive results on these tests.

That’s why testing can only be one part of the education reform agenda (and it can be a useful tool in measuring student progress). True education reform must involve dramatically-enhanced educational choice on the part of parents and students (as was done in the 90s in Florida and more recently in Louisiana). Governor Martinez and Sec. Skandera are working to implement education reform 1.0 (Florida) here in New Mexico. Louisiana has moved on to 2.0. Will we be left behind on this second wave of reform as well?

HT: John Onstad

Interesting notes relating to the story. While New Mexico is 6th in federal spending per capita, it is number one in terms of federal spending relative to federal taxes paid. And, of course, there is the issue of the so-called “cuts” in federal spending under the sequester due to the failure of the Congressional “Supercommittee” which, while slowing federal spending growth may impact New Mexico, will not really make a dent in the federal budget.

Lastly, it is worth noting that, according to the report, “Non-farm employment in the state stood at 805,300 in March, which was 5,000 jobs ahead of March 2011 but still 50,000 jobs below the May 2008 peak.” In other words, there are 6.2% fewer non-farm jobs in New Mexico than existed before the financial crisis. That goes right along with national data indicating that if the work force were the same size as it was at the end of the Bush Administration, the unemployment rate would be 11.1 percent.

Rather than consistently opposing Solyndra-like programs of taxpayer-funding of corporations, the GOP leadership decided to increase the program’s size by 40%. Sure, many of the rank and file conservatives opposed House Leadership and voted against the bill, but all New Mexico House members (including Pearce) went along with the added corporate welfare.

Sure, Obama is a bad President that has expanded the federal government to unprecedented levels, but why are Republicans helping him?

The reality, as Veronique de Rugy points out, is that spending in Europe has continued to grow. Does that sound familiar (remember the so-called “Supercommittee” and its alleged cuts).

In Europe, taxes were raised, but spending wasn’t cut. Thankfully, conservatives here like Grover Norquist aren’t going to fall for that one. Also, it just shows how pathetic politicians are when it comes to actually cutting spending. They just can’t bring themselves to do it.

The easiest way to get Europe and America back on a pro-growth trajectory is to massively deregulate our economies. Unfortunately, the political will to do that seems limited as well.

According to this chart, New Mexico licenses approximately half (52) of what IJ calls “low-income occupations.” This is somewhat above average in terms of over-regulation. These are not doctors and lawyers, rather, many of the professions are as simple as being an interior designer, hairdresser, or some other profession that cannot harm anyone even if performed poorly.

Look for more from the Rio Grande Foundation on the issue of unnecessary government regulation in the near future. Also, there is a great video on the issue below:

Generally, the Rio Grande Foundation focuses on state and local policy issues. Nonetheless, given New Mexico’s status as one of, if not the, most reliant states on federal spending within its borders, the perilous condition of the federal budget must be of concern to all New Mexicans.

Particularly in this political season, the tendency is for the media and politicians to ignore what then- chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, called, “The biggest threat we have to our national security is our debt.” After all, no one running for office wants to be seen as taking government benefits away from people.

To make a dire, but complicated budget situation easier to understand, imagine a pie chart divided up into four approximately equal parts. They are: military, Social Security, Medicare/Medicaid, and everything else. About 25 percent of that “everything else” is not spent on actual programs; rather it is spent on interest payments on the national debt.

Unfortunately, the amount of spending done on these programs far exceeds tax revenues collected. This year, we are overspending by $1.3 trillion or so or more than 36 percent of the federal budget each year. That $1.3 trillion must be borrowed, thus adding to the burden on future generations). Total federal spending has doubled since the end of the Clinton Administration (from $1.8 trillion back in 2000 to $3.7 trillion this year).

Tax rates can be raised and lowered, but they cannot solve the problem. For starters, if the federal government simply confiscated all of the wealth of anyone in the country who earns $250,000 or more annually, we’d have about enough to bridge the deficit for one year. But, taking that wealth is a one-time operation. What do you do beyond that?

The reality is that spending must be the focal point of any serious discussion about New Mexico’s fiscal future. And, while eliminating or dramatically scaling back the Departments of Education, Energy, Commerce, Housing, and others is laudable, getting rid of them comes nowhere close to closing the gap between what the government takes in and what it spends on an annual basis.

If America is going to get back on track, we must go after the proverbial “big fish” in the federal budget: Social Security, Medicare, Medicaid, and the military.

The thing about New Mexico in this discussion is that it is in line to be disproportionately impacted. We have major federal installations under the Departments of Energy and Defense. We also have among the poorest populations in the nation which makes us heavily-reliant on Medicaid (New Mexico currently receives a 3-1 match from Washington for each dollar it spends on Medicaid).

Politically-speaking, Rep. Paul Ryan is among the only serious voices in Washington when it comes to reducing out-of-control entitlement spending. He does this by giving states more control over and responsibility for Medicaid spending (no longer can the program be expanded to take advantage of a generous match) and giving seniors greater control over decisions regarding their Medicare spending.

Ryan’s plan is not perfect, but it is the only serious one before Congress. Ryan makes what I believe are a few mistakes. He fails to make any reforms to a broken Social Security system that will continue to shortchange younger workers, he fails to address military spending (combined, that is 50 percent of the budget off the table), and he unnecessarily intermingles the tax reform issue with spending and entitlement reform issues, thus opening himself to attacks from the left.

But, as they say, “in the land of the blind, the one-eyed man is king.” And, Washington, DC is certainly blind when it comes to tackling crucial budgetary issues. With entitlements alone set to consume all federal tax revenues by 2050, the time for serious action is now.

Despite our reliance on the federal government, New Mexicans would be wise to accept an ounce of prevention now because the “cure” for fiscal incontinence will not be pretty.

Paul Gessing is the President of New Mexico’s Rio Grande Foundation. The Rio Grande Foundation is an independent, non-partisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility.

The fact is that businesses, unlike some individuals, have the money and wisdom to hire tax planners to reduce their tax bills. Is this a bad thing? No, tax competition insures that governments cannot get too out of control in terms of their tax and regulatory policies. Should the rest of us be concerned? Well, I for one would rather have resources stay in the private sector than in the coffers of inefficient governments. Sure, it may not be “fair” that businesses and the wealthy can legally avoid heavy tax burdens. Next time the government asks for more taxes, it is worth realizing that some of the very people targeted for higher taxes will simply flee or find a loophole to avoid the tax. That is why they are wealthy and successful in the first place.