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.

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

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.

Diversify New Mexico’s Economy Using Oil/Gas Surplus

Recently, it was announced that despite repeated attacks by the Biden administration, New Mexico’s oil and gas industry had a record year. It generated 35% of all general-fund revenue for the state budget in FY 2021 (which ended in June) – a share exceeded only once in the most recent eight-year period. In raw numbers, the industry generated almost $5.3 billion in revenue for state and local governments in the 2021 fiscal year. In other words, the industry that New Mexico has long (over) relied on and the “progressive” wing of the Democratic Party, in particular, would like to eliminate entirely, continues to prop up the State economy and budget. Ironically, the massive oil-and-gas-generated budget surplus available to legislators this January is also the ticket to the diversified economy that everyone of both political parties realizes New Mexico must have.

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.

Hydrogen is a false climate solution

Indigenous communities in New Mexico have long dealt with the negative impacts of experimental energy projects promoted by state and federal governments. 

This legislative session, as the state faces a climate crisis that is already disproportionately impacting Indigenous, low-income, and communities of color, the stakes of energy policies are higher than ever. 

Why, then, is New Mexico Governor Michelle Lujan Grisham touting the hydrogen fuel industry, which is nothing short of a scheme to subsidize oil and gas companies and keep the state dangerously reliant on fossil fuels? 

Related:

Striving toward net zero, New Mexico grapples with role of hydrogen

The governor’s proposed “Hydrogen Hub Act” promotes hydrogen as a clean energy solution. But 96 percent of hydrogen production in the U.S. requires fossil fuels, and burning hydrogen is worse for the environment than burning coal. 

Hydrogen development will only exacerbate the climate crisis the state is facing, while distracting state agencies from investing in meaningful climate solutions and renewable energy projects, like solar and wind. 

As leaders in an Indigenous organization whose members and communities would be directly impacted by hydrogen development, we have taken a stand against all false climate solutions in New Mexico, including hydrogen, and are calling on the Governor to stop sacrificing our lands, waters, and communities. 

Hydrogen is currently produced using methane gas – the “gas” in oil and gas. Converting methane to hydrogen promotes more fracking in our communities and releases carbon dioxide in the process. To boot, converting methane to hydrogen requires enormous amounts of energy, energy that today mainly comes from the burning of fossil fuels. Where will these fossil fuels come from?