2022 Special Edition

Effort to cap interest rates contends with lobbying muscle

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Once a person has taken out a loan from a storefront lender in New Mexico, interest rates up to 175% can quickly spiral out of control. Because they target lower-income people who don’t have bank accounts, these storefront outfits are often referred to as “predatory lenders.”  A 2020 Think New Mexico report describes New Mexico as “saturated”: In New Mexico there is a small loan store for every 3,819 residents, according to the report. By comparison, there is one McDonald’s restaurant for every 23,298 New Mexicans. As lawmakers attempt to cap interest rates at 36% this session, they might keep in mind a new New Mexico Ethics Watch report that took a look at the industry’s lobbying efforts. It’s a report that quantifies some of the spending but also gets across just how much we can’t know about the influence peddling that goes on at the Roundhouse, bringing up an issue New Mexico In Depth has reported on repeatedly over the years: lobbying disclosure.

2022 Special Edition

Marathon hearing on Hydrogen Hub Act shows the challenge of an unpaid Legislature

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Gov. Michelle Lujan Grisham and other high-profile, powerful lawmakers hope to pass a highly complex and consequential energy bill through this year’s 30-day legislative session. They hit a wall yesterday in the House Energy, Environment & Natural Resources committee where a bi-partisan majority of the committee’s members voted to table the Hydrogen Hub Act. The marathon six hours about the 68-page bill brimming with technical and often arcane language demonstrated a challenge in New Mexico’s legislative system of relying on unpaid citizen lawmakers. 

While intense public pressure against the proposal surely contributed to the outcome, it was also clear lawmakers had little time to digest the legislation or its implications before the hearing. 

Like most of the public, I’ve had little opportunity to research the bill that was introduced earlier this week, much less develop an informed perspective about it. But I don’t have to cast a vote in the next few weeks on whether or not to use public resources to spur a new industry, especially one that in legislative time has popped up out of the blue. 

The principal bill sponsor, Rep. Patricia Lundstrom, a Democrat representing an area of the state that would benefit from the measure, made a point of telling the committee that the bill had been in the works for more than a year. It had been heard in two interim committees already, she said, and endorsed by the Legislative Finance Committee. 

But most of New Mexico’s lawmakers hold down other jobs and don’t have paid analysts to help turn hard-to-understand legislation into discernible facts. 

Listening to the lengthy committee hearing yesterday, it’s clear there are voluminous details lawmakers must master to make an informed decision about the economics of the proposal, the technical details involved in producing hydrogen, and the environmental impact.

2022 Special Edition

ICYMI: Amid record revenue, lawmakers fail to address risk of waste and fraud

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Legislative Finance Committee analysts described over reliance on emergency procurement as resulting from mismanagement in their October report. Legislative analysts have repeatedly warned since 2016 that government agencies’ increasing reliance on no-bid contracting puts New Mexico at increased risk of waste and fraud. Their most recent admonition came a month after a state grand jury indicted a former powerful lawmaker for racketeering, money laundering and kickbacks related to a no-bid contract. 

Lawmakers have largely ignored those warnings; in fact, a bill pre-filed for the legislative session starting Tuesday in Santa Fe appears to create new exemptions to the procurement code. Nor is reform a high priority for Democratic Gov. Michelle Lujan Grisham, whose three years in office have been marked by a sharp rise in no-bid contracting. 

“Such an item is not currently an element of the agenda,” said Nora Meyers Sackett, a spokeswoman for Lujan Grisham, who has the power to set this year’s 30-day legislative agenda, as lawmakers are otherwise limited to budget matters. “But the governor’s office will, as always, review and evaluate potential initiatives.” 

Since 2019, Lujan Grisham’s first year in office, her administration has circumvented competitive bidding on at least 886 occasions, approving sole-source and emergency contracts worth more than $796 million, greatly outpacing her Republican predecessor, according to New Mexico In Depth’s analysis of reports from state agencies under Lujan Grisham’s control.

2022 Special Edition

Lawmakers push forward housing bills

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Two housing measures aimed at alleviating New Mexico’s housing crisis passed their first legislative committees this week, but with just over three weeks in the session, the bills face a race against time and numerous legislative hearings. 

The bills mean to address a multi-layered housing crisis in which overall homelessness has increased, eviction has become a greater threat for low-income renters, and homes for low-income renters or first-time homebuyers are in short supply. The problems are interconnected, with greater demand for housing pushing rents up, and lower-income families finding it increasingly difficult to afford shelter.   

The pandemic has only aggravated the situation. “In the past year, rent has increased 13.7 percent nationwide and 18.5 percent in Albuquerque,” according to legislative analysts in a fiscal impact report for Senate Bill 19 in which they cited statistics from the Yardi Matrix National Multifamily Report.  The fiscal impact report, based on data from the New Mexico Association of Realtors, also noted a steep rise in home prices, with the median home sale price jumping from $185,000 in 2016 to $290,500 in 2021. 

Senate Bill 19, which cleared the Senate Health and Public Affairs Committee on a unanimous vote Monday, would boost the New Mexico Housing Trust Fund by $70 million. The cash infusion would enable the New Mexico Mortgage Finance Authority (MFA) to significantly expand programs that help people find and stay in housing, and it would help build affordable housing outright. “We’ve always needed more homes, more affordable homes, in New Mexico,” Sen. Nancy Rodriguez, the bill’s sponsor and a Santa Fe Democrat, said during Monday’s hearing in front of the Senate Health and Public Affairs Committee.

2022 Special Edition

Necessary Ethics Reform Efforts Hampered by Constitutional Restrictions, Politics

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Everyone who works around the Legislature – legislator, lobbyist, analyst, advocate, reporter, etc. — knows that it can take time for legislation to “ripen”. That sometimes moving in a new direction from what is currently in statute or what is commonplace can take years of lead time and advocating for a change or for reform. And sometimes there are issues that arrive with such exigency that they are embraced with apparent immediacy and acknowledgment of the necessity for action. This year saw the indictment of a powerful state representative on multiple corruption charges.

2022 Special Edition

Common Cause New Mexico Goes Back to the Basics for 2022 Session

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2021 has been a long year. Starting with the Jan. 6 insurrection at the U.S. Capitol, it  extended through attempts made by several state legislatures to erect barriers to voting and take back the authority to determine election results themselves rather than basing it on the tabulations of election officials—and votes cast by citizens.  Here in New Mexico we are fortunate to have robust election administration at the state and local levels, with secure,  accurate and accessible elections open to all qualified voters. But that does not mean we need to rest on our laurels. This session, Common Cause will focus on strengthening some of the basic safeguards to democracy at the local and state level.  Our priorities may not elicit much razzle dazzle, but we believe in adequately funding some of the protections we already have established in the new Ethics Commission and in the Secretary of State’s Office.

2022 Special Edition

Little-known public health councils are key to public health but chronically underfunded

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The COVID-19 pandemic has laid bare the limits of New Mexico’s understaffed and highly centralized public health system. 

Unlike most other states, New Mexico does not have county-based health boards. Instead, public health services like vaccination have traditionally fallen to the chronically understaffed state health department, which has struggled to contain the pandemic’s spread. “The big lesson is that we’ve underfunded public health,” said Sen. Jerry Ortiz y Pino, D-Albuquerque. “Our infrastructure was woefully inadequate and now we’re paying the price.”

That includes funding for the state’s 42 county and tribal comprehensive community health planning councils that, in the absence of local health boards, fill an important role identifying local public health gaps and needs. Many of the health councils have gone beyond their statutory mandates, in recent months, to pitch in with local COVID response efforts – helping to coordinate local testing and vaccination efforts, get word out to local residents about where they can get booster shots, and at times serving as an important channel of communication between state health officials and local governments. 

But the health councils are woefully underfunded, despite legislation passed in 2019 that expanded their mandates and directed the health department to provide them more funding.

2022 Special Edition

A fair and equitable recovery starts with supporting women of color

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New Mexicans share a belief that all of us – no matter where we live, how we look, or what we believe – deserve access to the same opportunities that help us achieve our unique potential. These opportunities – receiving a quality education, and having access to affordable health care, jobs that pay family-sustaining wages, and safe and affordable housing – are often referred to as social determinants of health and they impact everything from the conditions surrounding our births to the length of our lives. The COVID-19 pandemic made it apparent that these opportunities are not universally available and their lack has led to lower-quality social determinants of health for some communities. Clearly, communities of color and those earning low incomes were hardest hit by the pandemic as well as the economic aftermath. But another aspect that hasn’t gotten as much notice is how the pandemic and recession have hurt women more than men, with women of color being hurt the most.

2022 Special Edition

For the low income, housing is scarce — a challenge state lawmakers hope to address this session

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Cree Walker and her four children live in one room with two beds at an Albuquerque hotel that allows long-term stay. Credit: Marjorie Childress

New Mexico has a housing crisis. Homelessness is up and the inventory of homes and apartments is down. 

Ask Cree Walker, a 32-year-old mother of four children ages 5 to 12 who has experienced the crisis firsthand. “I haven’t been able to find anything,” said Walker, who has hunted for housing for six months. The 32 year old, who grew up in Pecos, moved to Idaho then returned to New Mexico but has scarce family to call on for help.

2022 Special Edition

New Mexico has opportunity to learn what works best from two years of extraordinary innovation

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The 2022 regular legislative session will be the second under the persistent shadow of COVID-19. For those of us who focus on child and family well-being, the situation is simultaneously dire and hopeful. The dire: Families with children, especially those with lower incomes, have been slammed by the simultaneous impacts of school and child care closures, job losses, and the anxiety and grief that have characterized this time for many. 

The hopeful: The sudden loss of in-person schooling and child care has renewed public focus on the importance of these sectors. States have received federal funding to stabilize them from the impacts of COVID, allowing new resources to flow into schools, child care, internet connectivity and other longstanding needs. 

During the session and in the coming year, our team at the University of New Mexico Cradle to Career Policy Institute will watch to see what New Mexico decides to keep from the pandemic, and what the state casts aside. In our policy and personal lives, the pandemic has offered a complex mix of things we are eager to lose forever, alongside those we hope to maintain. 

In the child care sector, COVID-19 has brought great instability for providers faced with decreased enrollment, family and provider fears about COVID exposure, and unpredictable closures and quarantines.