Effort to cap interest rates contends with lobbying muscle

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.

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

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.

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

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.

Developers throwing money into race for mayor

Crime makes headlines, but more pragmatic considerations may explain the money flowing into the Albuquerque mayoral race. While fundraising this election has lagged compared to prior campaign years, a significant chunk of the money reported has come from individuals and companies in the business of developing and selling land. Half of the money flowing into a political action committee (PAC) supporting Bernalillo County Sheriff Manny Gonzales comes from development interests. And a quarter of the more than $500,000 he has personally raised since District Court Judge Bryan Biedscheid upheld the Albuquerque City Clerk’s decision to deny him public financing comes from that industry. Big spenders supporting Gonzales have names like Daskalos, a family of developers who’ve funneled at least $27,000 into the race through various entities.

Lawmakers continue secret spending

Government transparency is more than good, it’s essential. The dark corners of government make it difficult for the people (as in, all of us) to exercise our right and our duty to ensure those we elect are governing in our best interest. 

In a cash-strapped state like New Mexico, transparency in how elected officials spend public money is even more important. For that reason, we applaud the publication of a list of how individual lawmakers spent public infrastructure funds under their control. Lawmakers have long resisted making that information public, but finally relented this year after sustained public pressure. We’ll be able to see the so-called capital outlay spending of individual lawmakers from now on.

Democratic candidates for New Mexico congressional seat disclose funding to date, with some prodding

Following the confirmation of New Mexico Rep. Deb Haaland as Secretary of the Interior, New Mexico will hold a special election on June 1st to fill her seat representing the Albuquerque-centered first congressional district. But the public doesn’t get a say in who the nominees will be. 

Rather than a primary election, state law allows the political parties themselves to select their own candidates. These choices are being made even while there’s been a gap in public disclosure of who’s contributed money to the various candidates. 

Yesterday, the Republican state central committee, with less than 140 members, convened over Zoom to choose State Sen. Mark Moores, R-Albuquerque, while about 25 members of the Libertarian Party chose Chris Manning. 

The Democratic state central committee will select their candidate on Tuesday, a highly anticipated choice given the Democratic tilt in the district for more than a decade. Just over 200 people–– a smattering of local party members, elected officials and other party insiders–– will be eligible to vote for one of eight different candidates seeking the nomination. On March 23rd, the Democratic Party of Bernalillo County held a virtual candidate forum exclusively for their members.

New Mexico lawmakers snub lobbying transparency. In other states, it’s business as usual.

Despite some early optimism from advocates, state lawmakers took a pass this year on requiring greater transparency around the work of lobbyists. In fact, lawmakers didn’t even give the topic a full hearing during the recent legislative session.  That’s despite a significant lack of disclosure about how powerful lobbyists work to influence legislation in New Mexico.  In a 2015 report, the Center for Public Integrity graded the state an “F” for lobbying disclosure, the 43rd worst in the country. It’s not improved since then. Drive a few hours north, and the sort of transparency proposed for New Mexico is just business as usual.

Legislature shines light on itself

The Legislature concluded today, which also happens to be the final day of Sunshine Week, so it’s only fitting that we review a couple of transparency measures taken up by the Legislature. 

In short: it’s a mixed bag. One prominent measure five years in the making passed, and if the governor signs the bill, lawmakers will no longer be able to allocate public works dollars in secret. But another measure that sought to fix a loophole in campaign finance disclosure laws was dead in the water. 

Lawmakers shine light on themselves

Once a contentious measure among lawmakers, a bill that requires a list of how lawmakers allocate public infrastructure dollars be published on the legislative website sailed through the 2021 session. It’s momentous, considering the long history of secrecy surrounding how lawmakers decide what projects to fund. The public list will only pertain to projects this year and in the future.