About Pete Dinelli

Pete Dinelli was born and raised in Albuquerque, New Mexico. He is of Italian and Hispanic descent. He is a 1970 graduate of Del Norte High School, a 1974 graduate of Eastern New Mexico University with a Bachelor's Degree in Business Administration and a 1977 graduate of St. Mary's School of Law, San Antonio, Texas. Pete has a 40 year history of community involvement and service as an elected and appointed official and as a practicing attorney in Albuquerque. Pete and his wife Betty Case Dinelli have been married since 1984 and they have two adult sons, Mark, who is an attorney and George, who is an Emergency Medical Technician (EMT). Pete has been a licensed New Mexico attorney since 1978. Pete has over 27 years of municipal and state government service. Pete’s service to Albuquerque has been extensive. He has been an elected Albuquerque City Councilor, serving as Vice President. He has served as a Worker’s Compensation Judge with Statewide jurisdiction. Pete has been a prosecutor for 15 years and has served as a Bernalillo County Chief Deputy District Attorney, as an Assistant Attorney General and Assistant District Attorney and as a Deputy City Attorney. For eight years, Pete was employed with the City of Albuquerque both as a Deputy City Attorney and Chief Public Safety Officer overseeing the city departments of police, fire, 911 emergency call center and the emergency operations center. While with the City of Albuquerque Legal Department, Pete served as Director of the Safe City Strike Force and Interim Director of the 911 Emergency Operations Center. Pete’s community involvement includes being a past President of the Albuquerque Kiwanis Club, past President of the Our Lady of Fatima School Board, and Board of Directors of the Albuquerque Museum Foundation.

City Moves To Be Released From Portions Of DOJ Consent Decree And Monitoring; Commentary: Intent And Purpose Of CASA Accomplished, Dismiss Case

On Friday, January 10, the City of Albuquerque filed a Motion to have certain portions of the federal Court Approved Settlement Agreement (CASA) suspended and placed into “sustained compliance” and “suspend monitoring” of those requirements by the Federal Court approved monitor. The city’s Motion highlights the progress made by the Albuquerque Police Department (APD) in implementing the court mandated reforms under the CASA. You can read the entire 25-page e-filed Motion on the United States District Court for the District of New Mexico docket Case 1:14-cv-01025-JB-SMV, Document 503 Filed 01/10/20, United States of America, Plaintiff v. The City of Albuquerque, Defendant v. The Albuquerque Police Officer’s Association, Intervenor

According to the Motion, the Albuquerque Police Officer’s Association, the sole intervenor in the case, agrees with the relief being sought by the City. However, the court appoint federal monitor takes no position on the City’s motion. The DOJ and the monitoring team have been working with the City and APD on a “self-assessment” plan to determine to what extent APD has in fact come into compliance with all the reforms and the extent of the need for further monitoring.

Under the Federal Court Rules, the Department of Justice (DOJ) is required to file a response to the Motion. The DOJ response will be filed only after the “self-assessment” plan is completed and filed with the court. The intent of the DOJ is to have the assessment completed and filed with the Court before the public hearing that is scheduled for Tuesday, February 11, 2020 at 9:00 am. (Location: Vermejo Courtroom, U.S. Courthouse, 333 Lomas Blvd. NW, Albuquerque.) This is the very first time in over 5 years that the City has filed any kind of Motion in an attempt to dismiss the CASA and the monitoring by the Federal Monitor.

This blog article is a deep dive into the contents of the motion, what the city is asking for and what it may mean in the long term for the City and APD. It is anticipated another blog article will be published on the DOJ’s response to the Motion once filed.

(EDITOR’S NOTE: A history of the federal litigation, a summary of the contents of Federal Monitors 8th, 9th and 10th reports are contained in the postscript to this blog article.)

SUSPENSION AND TERMINATION PROVISIONS OF THE CASA

As a backdrop to what is being requested in the motion, certain provisions of the settlement need to be reviewed. The CASA contains the following suspension and termination provisions:

“Termination of the Agreement

342. The City will endeavor to reach full and effective compliance with this Agreement within four years of its Effective Date. The Parties agree to jointly ask the Court to terminate this Agreement after this date, provided that the City has been in full and effective compliance with this Agreement for two years. “Full and Effective Compliance” shall be defined to require sustained compliance with all material requirements of this Agreement or sustained and continuing improvement in constitutional policing, as demonstrated pursuant to the Agreement’s outcome measures.

343. If after six years from the Effective Date the Parties disagree whether the City has been in full and effective compliance for two years, either Party may seek to terminate this Agreement. In the case of termination sought by the City, prior to filing a motion to terminate, the City agrees to notify DOJ in writing when the City has determined that it is in full and effective compliance with this Agreement and that such compliance has been maintained for no less than two years.”

The CASA does have a provision that allows suspension of the monitoring. Specifically, Paragraph 302 of the CASA provides:

“302. Where the Parties agree, the Monitor shall refrain from conducting a compliance review of a requirement previously found by the Monitor to be in sustained compliance for at least two years pursuant to audits or reviews, or where outcome assessments or other information indicate that the outcome intended by the requirement has been achieved.”

The link to the full 106-page CASA containing 276 mandated reforms can be read here:

https://www.cabq.gov/mental-health-response-advisory-committee/documents/court-approved-settlement-agreement-final.pdf

Under the CASA, the federal monitor evaluates compliance in three specific areas:

1. PRIMARY COMPLIANCE: Primary compliance is the “policy” part of compliance. To attain primary compliance, APD must have in place operational policies and procedures designed to guide officers, supervisors and managers in the performance of the tasks outlined in the CASA. As a matter of course, the policies must be reflective of the requirements of the CASA; must comply with national standards for effective policing policy; and must demonstrate trainable and evaluable policy components.

2. SECONDARY COMPLIANCE: Secondary compliance is attained by implementing supervisory, managerial and executive practices designed to (and effective in) implementing the policy as written, e.g., sergeants routinely enforce the policies among field personnel and are held accountable by managerial and executive levels of the department for doing so. By definition, there should be operational artifacts (reports, disciplinary records, remands to retraining, follow-up, and even revisions to policies if necessary, indicating that the policies developed in the first stage of compliance are known to, followed by, and important to supervisory and managerial levels of the department.

3. OPERATIONAL COMPLIANCE: Operational compliance is attained at the point that the adherence to policies is apparent in the day-to-day operation of the agency e.g., line personnel are routinely held accountable for compliance, not by the monitoring staff, but by their sergeants, and sergeants are routinely held accountable for compliance by their lieutenants and command staff. In other words, the APD “owns” and enforces its policies.

The CASA was negotiated to be fully implemented over a four-year period. However, because of the previous Republican City Administration’s “delay, do little and deflect” tactics, which was found by the Federal Monitor in his second report, it has taken much longer to implement the agreed to and mandated reforms.

http://documents.cabq.gov/police/reports/department-of-justice/independent-monitors-second-report.pdf

It has now been over 5 full five years since the CASA was signed. Under the terms and conditions of the CASA, once APD achieves a 95% compliance rate in all 3 of the compliance areas, and maintains compliance for 2 years, the case can be dismissed.

WHAT THE CITY IS SEEKING IN THE MOTION

The city wants the federal court to suspend the monitoring activity with respect to “certain requirements” of the CASA and to put other requirements into the two-year “sustained compliance” phase. There are 3 primary areas the city is seeking that sustained compliance be found suspending further monitoring:

1. Behavioral health training of APD officers
2. APD recruitment and
3. APD specialized units.

According to the motion, APD will take steps to remain “vigilant” in preserving the progress that has already be made under the CASA. The “center piece of these efforts is that APD shall conduct regular self-assessments of compliance and shall file self-assessment reports with the court every 6 months.” (Page 3 of Motion.)

If the federal court grants the motion and allows suspension of the monitoring in the identified areas, and after the city files a separate motion to allow self-assessment, the federal monitor will suspend the monitoring in those areas but will review APD’s self-assessment reports for compliance. The federal monitor will also evaluate whether the self-assessment reports reveal any significant concerns threatening continuing compliance with the requirements of the CASA. Further, the monitor will continue reviewing media accounts and other evidence provided to the monitor to determine whether there has been any substantial and significant lapse in compliance with the requirements of the CASA. (Page 3 and 4 of Motion.)

SPECIFIC AREAS OF COMPLIANCE IDENTIFIED BY CITY IN MOTION AS NO LONGER NEEDING MONITORING

The City’s Motion seeks suspension from federal monitoring of identified paragraphs and mandated reforms of the CASA. The specific areas are summarized as follows:

1.SELF-ASSESSMENT COMPLIANCE:

According to the motion, these paragraphs have been in compliance since July, 2017. APD will self-assess compliance and wants the federal monitor to suspend the compliance audits but monitor APD’s self-compliance reports for accuracy. The parties are developing a plan to be approved by the court defining the format and requirements of the self-assessment reports. (Page 6 of Motion)

2. MULTI-AGENCY TASK FORCE COMPLIANCE:

The CASA requires APD to participate in a Multi-Agency Task Force (MATF) under a “memorandum of understanding” (MOU) with other law enforcement agencies to investigate APD officer involved shootings, serious use of force incidents and in custody deaths, and to provide final reports to prosecuting agencies with jurisdiction over any allege criminal conduct by police officers. New use of force “standard operating procedures” will become operative in early 2020. APD Internal Affairs Force Division (IAFD) will be assuming responsibility for investigation Level 3 uses of force. The city is proposing that APD only investigate APD officer involved shootings, in custody deaths and alleged criminal conduct. The MATF and MOU are currently being revised. The Monitor found operational compliance by APD with the MATF and MOU. (Page 7 of Motion)

3.MENTAL HEALTH RESPONSE ADVISORY COMMITTEE (MHRAC):

The CASA requires the City and APD to establish a Mental Health Response Advisory Committee (MHRA) comprising of certain members and representatives from various entities or stakeholders including the UNM Psychiatric Department and providers to the homeless and to those who experience mental health crisis. In the 9th Independent Monitors Report (IMR), the Monitor found that the MHRAC continued to be one of the biggest success stories of APD’s community outreach under the CASA. The 10th IMR found operational compliance. (Page 8 of Motion)

4. BEHAVIORAL HEALTH TRAINING:

Under the CASA, the city and APD agreed to ensure that all APD Academy cadets, field officers and 911 emergency operators received behavioral health and crisis intervention training, including initial training of 40 hours and biannual update training. All such training has been completed. The 9th Independent Monitors report found that APD has continued to appropriately and effectively utilize training curricula that addresses field assessment, identification, suicide intervention, crisis de-escalation, community mental health participation and scenario-based exercise and role-playing exercises. The 10th Monitor’s Report found operational compliance with the behavioral health training mandates of the CASA. (Page 9 of Motion)

Not identified or even mentioned in the City’s motion are 3 major programs that have been implemented to deal with the Albuquerque Police Department’s (APD) interactions with the mentally ill and substance abuse defendants. All 3 programs involve the training of police officers. All 3 programs have the potential to reduce or have reduced the use of excessive force and deadly force by APD.

The 3 APD programs are:

CIT-ECHO Project:

CIT stands for Crisis Intervention Training and ECHO stands for Extension for Community Healthcare Options. In 2014, the CIT-ECHO project was launched by the city with a grant from the Department of Justice (DOJ) Bureau of Justice Assistance to raise awareness of how law enforcement should deal effectively with those struggling with mental health issues. The CIT-ECHO Program consists of weekly video conference workshops with APD and CIT officials.

The EPIC Program:

The acronym “EPIC” stands for “Ethical Policing Is Courageous.” The EPIC program aims to stem police officer misconduct and use of force and deadly force by police officers. The program uses “hands-on scenarios” and role-playing enactments and demonstrations to teach police officers on how to defuse calls for service that start escalating and that could easily result in the use of excessive force or deadly force.

EPIC focuses on proactively preventing uses of force, rather than just punishing officers when damage is already done, including the killing of a suspect. The primary purpose of the EPIC program is to provide police officers with effective and proper training to learn just how and when to intervene when they themselves see other police officer misconduct. The EPIC program is designed to show police officers how to recognize problematic behavior in fellow officers that may trigger a fellow officer to engage in misconduct.

The “LEAD” Program:

LEAD stands for “law enforcement assisted diversion” program. The LEAD Program allows APD officers to determine whether the person they’ve arrested needs to go to jail or would better benefit from a trip to a detox facility or a meeting with a case manager who can help them plug into services such as Medicaid, housing vouchers and substance abuse treatment. APD officers are given full discretion to decide to arrest people on low level charges or to rely on the LEAD diversion program. The main goal of the LEAD program is to send people to services before charges are ever filed which is unlike other court diversion efforts such as the Drug Court.

5.FIELD TRAINING OFFICER PROGRAM:

The CASA requires APD to provide academy graduates with 16 weeks of field training following the academy. The Casa also states requirements for the training of field training officers and the training provided to cadets. The 9th and the 10th Independent Monitors Reports found 100% compliance with requiring cadets to complete 16 weeks of field officer training ensuring that the recruits are trained in multiple area commands, on different shifts and establishing a mechanism for confidential feedback. The motion seeks that the mandate be found in substantial compliance. (Page 10 of Motion)

6.STAFFING STUDY:

The CASA originally required APD to conduct a staffing study to determine what level of sworn officers were required to carry out its functions. On December 11, 2015, the 62 page “Albuquerque Police Department Comprehensive Staffing Assessment and Resource Study” was released by the Alexander Weiss Consulting, LLC. The 10th Independent Monitor’s Report found that the staffing study analysis has become less relevant because of the sure passage of time. The parties have agreed that it is premature to conduct another staffing study and therefore the motion seeks that the mandate for a staffing report be suspended. (Page 11 and 12 of motion.) Notwithstanding, the Police Union President has advocated in news interviews the need for yet another staffing report, even though APD is undertaking an aggressive expansion of the Department to recruite 100 officers a year with the goal of having 1,200 sworn police. You can review the 2015 staffing report at this link:

https://www.cabq.gov/police/documents/monthly-reports/comprehensive-staffing-assessment-and-resource-study.pdf

7. RECRUITMENT AND SELECTION:

The CASA has mandates relating to the recruitment of new cadets and lateral hires from other law enforcement departments. Under the CASA, APD was required to develop a comprehensive recruitment and hiring program and a strategic recruitment plan that clearly identified goals of recruitment efforts. The recruitment plan had to include specific strategies for attracting a diverse group of applicants.

According to the CASA, APD’s hiring and selection process must be based on objective minimum standards that comport with best practices and applicable anti-discrimination laws. Further under the CASA, all APD recruits must undergo psychological, medical, polygraph, and drug testing and be subject to background investigations dealing with credit history, employment history, prior use of lethal force and less lethal force and force training and complaint history. An annual recruitment report is also mandated under the CASA. Independent Monitor Reports 9 and 10 found that APD has been in operational compliance with the recruitment and selection requirements of the CASA and therefore the motion is seeking the monitoring be suspended because of operational compliance. (Page 13 of Motion)

8. PERFORMANCE EVALUATIONS AND PROMOTIONAL POLICIES:

The CASA has requirements for APD’s performance evaluation and promotional policies. The requirements are that:

“APD shall develop a fair and consistent performance evaluation system that reviews particular areas relating to constitutional policing, community policing and more.”

The performance evaluation system under the CASA must be formal and supervisors must be held accountable for failing to timely complete performance evaluations. Supervisors are required to meet with reporting officers, discuss the evaluations and develop work plans. Independent Monitor Reports 9 and 10 found that APD has been in operational compliance for the past two years with the performance evaluations and promotional policies of the CASA. The motion seeks to have the performance evaluations and promotional policies be found in operational compliance and the monitoring suspended. (Page 13 of Motion)

REQUEST FOR SUSTAINED COMPLIANCE FINDING BY COURT IN SPECIFIED DIVISIONS

According to the Motion, there are 5 APD Divisions that have now been in operational compliance for the past two years. The motion asserts that APD has demonstrated the outcome intended by the requirements under the CASA and has achieved and demonstrated sustained and continuing improvement in constitutional policing. The Motion requests that the divisions be placed in sustained operational compliance and that FEDERAL monitoring suspended.

Following are the APD Divisions:

1.SPECIAL OPERATIONS DIVISION:

APD’s Special Operations Division (SOD) consists of 4 tactical units: Special Weapons and Tactics Unit (SWAT), Explosive Ordinance Disposal Unit, and the K-9 Unit. The CASA mandates reforms and policies for all 3 divisions as follows:

A. Specialized and enumerated training for the divisions.

B. Policies that address enumerated criteria, including for use of force, force reporting and investigation.

C. Personnel and retention criteria.

D. Annual review of policies including consideration of legal developments and evaluations of after-action reviews.

E. Detail documentation of all call-outs and deployments.

F. Briefings prior to deployment.

G. Annual review of personnel to ensure they meet eligibility criteria.

H. Tracking canine deployments, apprehensions, and dog bite ratios and inclusion of bite ratios in the Early Intervention System.

I. Tracking and analyzing specific data for deployment of tactical units.

(Page 16 of Motion)

According to the motion, with the exception of Force Review Board reviews, all 3 Divisions have been in operational compliance for more than 2 years. Independent Monitor Reports 9 and 10 noted the quality of the documents prepared by the tactical units. The 9th IMR report noted:

“… reports show that members from the tactical units are displaying exemplary work in constitutional policing, integrity, community policing, and critical policing functions.”
The 10th IMR noted that the Special Operations Division improved its operations and exhibiting a culture of “continuous growth and quality improvement.”

2.SPECIAL INVESTIGATIONS DIVISION (SID)

The CASA includes mandates for the management and supervision of functions within the Special Investigations Division (SID). The CASA mandates include the following:

A. Each specialized investigation unit must have policies that incorporate APD’s agency-wide policies on use of force.

B. The specialized investigative units must have protocols to address coordination with specialized tactical units when high risk situations occur.

C. Annual inspections of the weapons used by specialized investigations unit to ensure that they are consistent with the unit’s training mission.

D. Tracking and reporting regarding APD’s specialized investigative unit responses.

(Page 18 of Motion)

The 9th and 10th Monitors Reports states that SID has been in operational compliance for the past 2 years justifying the suspension of monitoring.

3.PUBLIC INFORMATION ON CIVILIAN COMPLAINTS

The CASA mandates the establishment of the “Civilian Police Oversight Agency” (CPOA) by the city. The CPOA is charged with investigating civilian complaints against APD sworn personnel and to disseminate information on how complaints can be filed. The CASA mandates that when a civilian informs an officer that they wish to file a complaint the officer must inform their supervisor. The supervisor must respond and go to the scene and provide to the civilian complaint forms and accept the complaint. The officer that is the subject of the complaint must provide their name and badge number upon request by the civilian. (Page 19 of Motion)

The Civilian Police Oversight Agency has been created, fully funded and staffed with a full time director hired. The CASA requirements for the CPOA have been in full operational compliance for two years. The motion requests that the CPOA mandate be placed in sustained compliance.

4.PROMOTIONS

The CASA requires APD to adopt and implement promotional practices that are lawful and consistent with best practices. Promotions must be based on police officers’ skills, knowledge, and abilities to promote management duties in core, substantive areas and must consider an officer’s disciplinary history in making promotions. APD has revised its promotional policies that have been approved by the Federal Court. APD has been in operational compliance with the Promotion mandated reforms for two years. The motion seeks to place the CASA requirements on Promotions into sustained compliance. (Page 20 of Motion)

5.OFFICER ASSISTANCE AND SUPPORT

The CASA requires that APD provide confidential, comprehensive mental health services to police officers that comport with best practices and current professional standards. The CASA requires that APD must provide training to personnel regarding officer support protocols to ensure such services. APD now requires a mental health evaluation before allowing a police officer to return to full duty following traumatic incidents, including officer involved shootings, officer involved accidents, and involvement in uses of force resulting in death. All but two of the mandates involving Officer Assistance and Support have been in operational compliance for two years. The Motion requests the officer assistance and support mandates be placed in sustained compliance.

(Page 21 of Motion)

COMMENTARY AND ANALYSIS

It was in November 2014, that the City and the Department of Justice entered into the Court Approved Settlement Agreement (CASA). The link to the CASA is here:

https://www.cabq.gov/mental-health-response-advisory-committee/documents/court-approved-settlement-agreement-final.pdf

As of November, 2019, a full 5 years has expired since the city entered into the CASA with the DOJ. From all appearances and practical purposes, and from review of the Federal Monitor’s reports, the City and APD have completed the following mandated reforms under the Court Approved Settlement Agreement:

1. After a full year of negotiations, new “use of force” and “use of deadly force” policies have been written, implemented and all APD sworn have received training on the policies.

2. All sworn police officers have received crisis management intervention training.

3. APD has created a “Use of Force Review Board” that oversees all internal affairs investigations of use of force and deadly force.

4. The Internal Affairs Unit has been divided into two sections, one dealing with general complaints and the other dealing with use of force incidents.

5. Sweeping changes ranging from APD’s SWAT team protocols, to banning choke-holds, to auditing the use of every Taser carried by officers and re-writing and implementation of new use of force and deadly force policies have been completed.

6. “Constitutional policing” practices and methods, and mandatory crisis intervention techniques an de-escalation tactics with the mentally ill have been implemented at the APD police academy with all sworn police having received training.

7. APD has adopted a new system to hold officers and supervisors accountable for all use of force incidents with personnel procedures implemented detailing how use of force cases are investigated.

8. APD has revised and updated its policies on the mandatory use of lapel cameras by all sworn police officers.

9. The Repeat Offenders Project, known as ROP, has been abolished.

10. Civilian Police Oversight Agency has been created, funded, fully staffed and a director hired.

11. The Community Policing Counsels (CPCs) have been created in all area commands and the CPCs meet monthly.

12. The Mental Health Advisory Committee has been implemented.

13. The CASA identified that APD was understaffed. The City and APD are in the process of spending $88 million dollars, over a four-year period, with 32 million dollars of recurring expenditures, to hire 322 sworn officers and grow the department to 1,200 officers. As of January 1, 2020, APD has 949 full time police officers, up from 878 sworn police. The expansion thus far is attributed primarily to hiring from other departments and returning to work APD retirees.

14. In November, 2018 APD achieved 99.6% compliance with primary tasks, 75.4% secondary compliance and 59.5% operational compliance with APD making significant progress in overall compliance.

15. According to the Use of Force Report for the years 2017 and 2018, APD’s “use of force” and “deadly force” is down dramatically , which was one of the primary objectives of the CASA reforms.

CONCLUSION

After over five years of implementing the mandating DOJ reforms, APD has finally made significant progress in implementing the reforms. The city is to be commended for filing the motion. The motion should be considered precursory to dismissal of the entire case sooner rather than later.

After review of the city’s motion, the DOJ investigation report, the 276 CASA mandates, the 10 Independent Monitors Reports and the reforms implemented, the only conclusion that can be reached is the spirit and intent of the CASA has been fully attained. The City’s “…Motion to Move CASA PARAGRAPHS INTO SUSTAINED COMPLIANCE OR SUSPENDED MONITORING” should be agreed to by the Department of Justice and granted by the Federal Judge. The parties to the case should go even further with a full stipulated dismissal of the case.

The biggest complaint of all the DOJ consent decrees in the country is implementation and enforcement “go on and on” for years, costing millions in taxpayer dollars. With expected, continued implementation of the DOJ reforms a 95% to 100% compliance with all the CASA primary, secondary and operational compliance goals should be achievable within 12 months, if not much sooner. The role of the federal monitor should be reduced, as is being requested in the motion, as well as the continued costs of the monitoring team reduced.

The city should commence negotiations immediately with the DOJ for a stipulated “Order of Complete Compliance and Dismissal” of the CASA, and all causes of action the DOJ has against the city and APD. Otherwise, the city and taxpayers will be sucked into “year after year” of expenses and costs associated with a consent decree whose primary objective has been achieved and whose federal monitor wants another $4 million to audit progress.

All documents related to APD’s settlement agreement can be downloaded and reviewed at this city web site link:

https://www.cabq.gov/police/documents-related-to-apds-settlement-agreement

The documents include:

The Settlement Agreement between City and the DOJ
APD Progress Reports
Independent Monitor’s Reports
Compliance Reports
Use of Force Annual Reports
Use of Force Reports
Studies
Audits

_____________________________

POSTSCRIPT

Following is a history of the federal litigation and a summary of the contents of Federal Monitors 8th, 9th and 10th reports:

DOJ INVESTIGATION

On April 10, 2014, the United States Department of Justice (DOJ), Civil Rights Division, submitted a scathing 46-page investigation report on an 18-month civil rights investigation of the Albuquerque Police Department (APD).

The investigation was conducted jointly by the DOJ’s Washington Office Civil Rights Division and the United States Attorney’s Office for the District of New Mexico.

You can read the entire report here.

https://www.justice.gov/sites/default/files/crt/legacy/2014/04/10/apd_findings_4-10-14.pdf

The DOJ investigation included a comprehensive review of APD’s operations and the City’s oversight systems of APD. The DOJ investigation “determined that structural and systemic deficiencies — including insufficient oversight, inadequate training, and ineffective policies — contribute to the use of unreasonable force.”

Based on the investigation and the review of excessive use of force and deadly force cases, the DOJ found “reasonable cause to believe that APD engage[d] in a pattern or practice of use of excessive force, including deadly force, in violation of the Fourth Amendment … . and [the] investigation included a comprehensive review of APD’s operations and the City’s oversight systems.”

Federal civil rights laws make it unlawful for government entities, such as the City of Albuquerque and APD, to engage in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights, privileges, or imunities secured by the Constitution and laws of the United States.

The investigative report found a pattern or practice of use of “deadly force” or “excessive use of force” in 4 major areas:

1. The DOJ reviewed all fatal shootings by officers between 2009 and 2012 and found that officers were not justified under federal law in using deadly force in the majority of those incidents. Albuquerque police officers too often used deadly force in an unconstitutional manner in their use of firearms. Officers used deadly force against people who posed a minimal threat, including individuals who posed a threat only to themselves or who were unarmed. Officers also used deadly force in situations where the conduct of the officers heightened the danger and contributed to the need to use force.

2. Albuquerque police officers often used less lethal force in an unconstitutional manner, often used unreasonable physical force without regard for the subject’s safety or the level of threat encountered. The investigation found APD Officers frequently used take-down procedures in ways that unnecessarily increased the harm to the person. Finally, APD officers escalated situations in which force could have been avoided had they instead used de-escalation measures.

3. A significant number of the use of force cases reviewed involved persons suffering from acute mental illness and who were in crisis. The investigation found APD’s policies, training, and supervision were insufficient to ensure that officers encountering people with mental illness or in distress do so in a manner that respected their rights and in a manner that was safe for all involved.

4. The investigation found the use of excessive force by APD officers was not isolated or sporadic. The pattern or practice of excessive force stemmed from systemic deficiencies in oversight, training, and policy. Chief among these deficiencies was the department’s failure to implement an objective and rigorous internal accountability system. Force incidents were not properly investigated, documented, or addressed with corrective measures by the command staff.

What differentiates the DOJ’s investigation of APD from the other federal investigations of police departments and consent decrees is that the other consent decrees involve in one form or another the finding of “racial profiling” and use of excessive force or deadly force against minorities. The DOJ’s finding of a “culture of aggression” within APD dealt with APD’s interactions and responses to suspects that were mentally ill and that were having psychotic episodes.

COURT APPROVED SETTLEMENT AGREEMENT (CASA)

The DOJ Court Approved Settlement Agreement (CASA) was negotiated over a 6-month period after the DOJ released its investigation report finding that APD engaged in a “pattern and practice” of unconstitutional “use of force” and “deadly force.”

The City retained outside counsel paying two individual’s considered national experts $1 Million with the contract not awarded by the customary Request for Proposals (RFP) process. The Republican Berry administration considered it a “sole source contract”, meaning the services could not be provided by anyone else, which was highly disputed with the contract awarded by the Berry Administration after recommendations made to it.

The 106-page negotiated CASA agreement was filed on November 10, 2014. Under the CASA, the assigned Federal Judge is given the power to enforce terms of the agreement and issue orders for compliance and issue sanctions for noncompliance.

Major reform mandates under the settlement include:

1. Sweeping changes ranging from APD’s SWAT team protocols, to banning choke-holds, to auditing the use of every Taser carried by officers and re writing and implement new use of force and deadly force policies.

2. The CASA mandates the teaching of “constitutional policing” practices and methods as well as mandatory crisis intervention techniques and de-escalation tactics with the mentally ill.

3. The City agreed that APD would overhaul and rewrite all of its “use of force policies” and “deadly force” policies, recruitment procedures, training, internal affairs procedures and implement field supervision of officers.

4. Stricter training and restrictions on the use of nonlethal force is required under the CASA, and it requires more training and controls over the use of Tasers by officers along with quarterly audits of their use.

5. The city agreed to the creation of a Police Oversight Board (POB) as a civilian review agency that independently reviews citizen complaints, serious uses of force and officer-involved shootings by APD. The civilian agency also monitors, reviews and make recommended changes to APD policy on use of force.

6. Under the CASA, the city agreed to the creation of Police Civilian Advisory Councils (CPCs), one in each of the 6 APD area commands, designed to increase community interaction.

7. The CASA broadens and removes obstacles to the types of civilian complaints Internal Affairs and the civilian oversight agency can review.

8. The CASA provides for the appointment of a Federal Court Monitor selected by agreement of the parties with the City to pay for the auditing services of the federal monitor. The primary duties and responsibilities of the federal monitor is to report directly to the federal judge on APD’s compliance with the mandatory reforms.

9. The agreement mandates that APD adopt a new system to hold officers and supervisors accountable for all use of force incidents with personnel procedures implemented and outlining details how use of force cases would be investigated. It requires far more reporting by officers and field supervisors and also requires detailed reviews of those reports up the chain of command within the department. Sergeants and lieutenants are required to be much more involved in field supervision and review of use of force by officers.

10. Under the agreement, officers who point their firearms at a person, but don’t fire, must fill out a use of force report that will be reviewed by field supervisors. That review is separate from a city civilian police oversight agency that will be independent of the department and will review police use of force incidents as well as civilian complaints.

11. The City agreed to create a new “Use of Force Review Board” to oversee all internal affairs investigations of use of force and deadly force. A new chain of command for the review of Internal Affairs reports of officer-involved shootings was created that reviews the Internal Affairs Reports and makes recommendations on discipline or asks for further investigation of an incident, and the board makes recommendations on discipline to the APD Chief. The Use of Force Board is required to make quarterly reports after reviewing all use of force reports to identify trends and policy changes.

12. APD agreed to revise and update its policies on the mandatory use of lapel cameras by all police officers.

13. Under the CASA, the City agreed to abolish the Repeat Offenders Project, known as ROP, within three months of signing the agreement for the reason that members of the unit were involved in a number of the controversial shootings investigated by the DOJ.

14. The agreement provides that if the city fails to implement the reforms or shows bad faith in the implementation of the CASA, the DOJ has the option of filing a federal lawsuit against the city over the city’s unconstitutional policing practices found by the DOJ investigation.

15. Certain types of hand-to-hand techniques are barred under the CASA unless the officer is in a situation that require the use of lethal force if it were available. Neck holds, sometimes called choke-holds, are explicitly forbidden to be used by officers except in situations where lethal force would be authorized.

16. A major change in the CASA bans APD officers from firing their weapons at moving vehicles in all but life-threatening situations.

The CASA provides that it is “designed to ensure police integrity, protect officer safety, and prevent use of excessive force, including unreasonable use of deadly force, by APD.” The settlement agreement requires APD to strive and use its best efforts to come in compliance with all requirements within four years, and if that were to occur, the case would be dismissed.

https://www.cabq.gov/mental-health-response-advisory-committee/documents/court-approved-settlement-agreement-final.pdf

FEDERAL COURT APPOINTED MONITOR

The CASA mandated the appointment of a Federal Court Monitor agreed to by the parties who would report directly to the Federal Court. On April 14, 2015 the city entered into a 4-year contract negotiated by the former Republican Berry Administration to pay a federal monitor $4.5 million over 4 years and the city agreed to assume all costs for the auditing services of the Monitor. The contract in fact hired an entire team of experts not just one person. The federal monitors contract had to be extended after the expiration of the original 4 years and the extension was for $1.5 million more in taxpayer funding.

A misconception is that the Federal Court took over APD and that the Federal Monitor has management and control over APD which is not remotely near the truth. No “special master” appointed by the court that took over APD nor its management. Under the settlement, the Federal Court Monitor does not have any management, authority nor control over APD, its employees and is not in the “chain of command”. The Federal monitor was not given any authority to give orders to APD personnel and has no authority to impose discipline on APD personnel. Under the CASA, the primary responsibility of the Federal Monitor is to gather statistical data, audit performance of APD and report the Federal Court on APD’s progress on implementing the mandated reforms.

Since his selection and appointment, the Federal Monitor has submitted to the Federal Court 10 auditing reports on the status and progress APD has made with the reforms. Five of the first six federal monitor reports were severely critical of APD’s compliance with the CASA.

In his second report to the federal court, Federal Monitor James Ginger accused the City Attorney of what he called, “delay, do little and deflect” tactics saying his relationship with her was “a little rougher than most” compared with attorneys in other cities where he has overseen police reform.

In the July 1, 2016 third progress report the federal monitor found “Across the board … the components in APD’s system for overseeing and holding officers accountable for the use of force, for the most part, has failed … the serious deficiencies revealed point to a deeply-rooted systemic problem. … The deficiencies, in part, indicate a culture [of] low accountability is at work within APD, particularly in chain-of-command reviews.”

In November 1, 2016 fourth progress report, the federal monitor found that when “excessive use of force” incidents are investigated by the APD Critical Incident Team, it “[deploys] carefully worded excuses, apparently designed not to find fault with officer actions” and “[uses] language and terminology apparently designed to absolve officers and supervisors of their responsibility to follow certain CASA related provisions”.

On March 15, 2018, a little over 3 months after Mayor Tim Keller was sworn into office and appointment a new APD Chief, a status conference was held with the Federal Court on the progress made in implementing the DOJ mandated reforms.

The March 15, 2018 status conference was in very sharp contrast to the one held a few months earlier in November, 2017 where Federal Judge Brack eviscerated and admonished the former Administration and the former City Attorney and Assistant APD Chief for secretly recording the Federal Monitor in order to show bias and have him removed as the monitor.

Three major changes to the DOJ consent decree were reported during the March 15, 2018 federal court hearing:

1. A compliance bureau had been established within APD, something the Federal Monitor had recommended from day one and that was totally opposed to and resisted by the prior administration.

2. The new “use of force” policy was finalized to streamline the investigative process defining 3 separate levels of use of force and the process how they would be investigated.

3. The Federal Monitor suspended preparing six-month reports and the monitor’s consulting firm instead provided “technical assistance” to APD as opposed to performing audits and gathering data.

To complete the reforms, APD must reach and maintain 95% compliance in three categories: Primary Tasks, Secondary Task Compliance and Operational Compliance.

FEDERAL MONITORS 8th, 9th, 10th REPORTS

On November 7, 2018, the Federal Monitor’s 8th Report on the compliance levels of APD and the City with Court-Approved Settlement Agreement was filed with the federal court.
You can read the full report here:

https://www.justice.gov/usao-nm/page/file/1107721/download

In the 8th report, the Federal Monitor gave the Keller Administration high marks, “calling it exceptional” regarding APD’s compliance with a settlement agreement. According to the 8th report, APD was in a far different position in the reform project than it was the year before under the previous Republican Mayor Berry and APD Police Chief Gordon Eden administration.

In the November 14, 2018 8th monitor’s report, the monitor reported APD was in “Operational Compliance” with the settlement agreement 59.2% of the time meaning officers followed policies outlined in the settlement agreement and when they did not, supervisors identified and corrected the behavior.

Statistics in the report used to track progress showed that APD:

Achieved 99.6% compliance with primary tasks;
Achieved 75.4% secondary compliance and
Achieved 59.5% operational compliance.

According to the 8th report, it was the first time APD achieved above 50% operational compliance.

https://www.abqjournal.com/1232650/judge-gives-high-marks-for-reform-efforts-at-apd.html

In the 9th audit report that covered the time period of August 1, 2018 to January 14, 2019 the federal monitor found APD was 99.6% in primary compliance, 79% in secondary compliance and 63% in operational compliance. This was up slightly from the 8th audit report when the department was in 75.4% secondary compliance and 59.2% in operational compliance. Primary compliance remained the same between the two periods at 99.6% compliance.

In the 10th Federal Monitor’s Audit report, the monitor reported APD met 100% of CASA-established primary compliance requirements during the reporting period. According to the audit “This means, in effect, that policy requiring compliance actions and processes are complete, and are reasonably designed to achieve the articulated goals of the CASA.” Secondary compliance rates (training) were reported at 81%, up from 79% and overall compliance rates are at 63%, the same as the 9th audit report.

Following is the “Overall Status Assessment” contained in the 10th Federal Audit report:

“As of the end of the tenth reporting period, APD continues to make progress overall, having achieved primary compliance in 100% of the applicable paragraphs of the CASA. Primary Compliance relates mostly to development and implementation of acceptable policies (conforming to national practices).”

“APD is in 81% percent Secondary Compliance as of this reporting period, which means that effective follow-up mechanisms have been taken to ensure that APD personnel understand the requirements of promulgated policies, e.g., training, supervising, coaching, and disciplinary processes to ensure APD personnel understand the policies as promulgated and are capable of implementing them in the field.”

“APD is in 64% Operational Compliance with the requirements of the CASA, which means that 64% of the time, field personnel either perform tasks as required by the CASA, or that, when they fail, supervisory personnel note and correct in-field behavior that is not compliant with the requirements of the CASA.”

For related blog articles see:

City And APD Should Commence Negotiations To Terminate CASA

APD Reforms On Tract; Save Millions, Drop Case

10th Federal Monitor’s Compliance Report: “Counter Casa Effect” Alive and Well Within APD; Move To Dismiss Union From Case; Remove Sergeants and Lieutenants From Police Union

Mayor Tim Keller’s 2020 State Of The City Address As He Gears Up For Re-Election To A Second Term

Ever since Mayor Tim Keller assumed office on December 1, 2017, he has taken photo ops and press conferences to an all new level by attending protest rallies to speak at, attending marches, attending heavy metal concerts to introduce the band, running in track meets and participating in exhibition football games as the quarterback and enjoying reliving his high school glory days, and posting pictures and videos on his FACEBOOK page. He even posts his press conferences on FACEBOOK. People can take great pride with the young, positive image Mayor Keller and his wife and young family are portraying for Albuquerque and it is refreshing on many levels.

On January 11, 2020, Mayor Keller did not disappoint the public nor all the news media with public relations when he gave his 3rd State of the City Address held at the Albuquerque Convention Center Kiva Auditorium. It was open to the general public and widely advertised as a community event. About 1,000 people attended and the Mayor spoke for 45 minutes with City and County elected Officials sitting behind him on the stage as he spoke from a podium to the audience. The “Heavy Metal Mayor” as he likes to be called was introduced as heavy metal played as he stepped unto the stage with his two very young children with First Lady Kisten Keller also attending. Keller’s 3rd state of the city address was a far cry from his first that was held in 2018 at a luncheon before the contractor and developer organization NAIOP and the second held in 20219 at the Hispanic Cultural Center that took on the feel of a campaign speech including the waiving of placards.

CONTENTS OF 2020 STATE OF THE CITY ADDRESS

In his State of the City address, Mayor Keller outlined and summarized what he felt were his administration’s biggest accomplishments during his first two years in office.
Public safety continues to be Mayor Keller’s primary focus. The city continues to grapple with high violent and murder crime rates as it recorded 82 homicides in 2019, the largest number in the city’s history in one year. Mayor Keller came under fire late last year when APD acknowledged it had been inadvertently providing inaccurate crime statistics that significantly overstated improvements as he held press conferences announcing double digit reductions in crime statistics. APD subsequently released statistics that showed far more lower reductions in property crime and little change in the city’s violent crime rates.

Mayor Keller repeated his goal of adding 100 new officers each year and noted when he came into office, APD had 850 sworn police. As of January 1, 2020, APD has 949 police down from 980 reported in August. The reduction can be attributed to retirements. According to Keller, APD will hit 1,000 officers in 2020. Keller also said said the city also intends to clear the rape kit backlog this year.

Mayor Keller announced that the City has filed a Motion with the Federal Court in the of a five-year-old agreement with the U.S. Department of Justice, citing APD’s consistent progress toward the mandated police reforms. According to Keller about 25% of the 276 requirements outlined in the Court Approved Settlement Agreement (CASA) have been implemented and he said:

“It is one giant step closer to freeing up additional officers and tax payer funding to focus back on crime. … This is going to be the largest step forward the city has taken to address these challenges since it all started in 2014”

Keller also praised the addition of 100 new officers to the ranks of APD during 2019 by saying:

“In 2020, for the first time in years, our department is going to be one thousand officers strong. ”

Mayor Keller also said he would work to reduce the city’s carbon footprint, starting with constructing a solar power plant that will power half of the city’s government buildings and said:

“In addition to that, we’ve put $25 million in solar panels on just about every building we can find that the city owns. ”

In his address, Keller talked about the increase homelessness in the city and how to combat drug addiction . The city recently announced they would keep their winter homeless shelter open year-round until a the new centrally located shelter is built. On November 5, 2019, voters approved for $14 million in general obligation bond funding to build a 24 hour, 7 day centralized homeless shelter that will accommodate an estimated 300 people and help guide them to social services and permanent housing. The city is also requesting an additional $14 million from the 2020 New Mexico Legislature to build the shelter. The city is in the process of identifying a location and is expected to break ground on the new shelter next winter.

The mayor also said he would work to reduce the city’s carbon footprint, starting with constructing a solar power plant that will power half of the city’s government buildings and said:

“In addition to that, we’ve put $25 million in solar panels on just about every building we can find that the city owns” .

Mayor Keller discussed the state of the local economy. According to Keller, the city added 3,100 jobs in 2019 citing the state Department of Workforce Solutions most recent labor market review. The city made great strides last year in economic development with the announcement of Netflix locating production facilities, TopGolf golf complex, NBC Universal purchasing Albuquerque Production studeos, Kairos Power and more. The industries making the biggest gains were “professional and business services” and the leisure/hospitality sector. Mayor Keller said:

“For the first time, total employment is officially higher than it was before the recession”

News coverage can be found here:

https://www.kob.com/albuquerque-news/mayor-keller-reflects-on-years-progress-during-state-of-the-city-address/5605947/?cat=500

https://www.koat.com/article/takeaways-from-albuquerque-state-of-the-city/30483917

https://www.abqjournal.com/1408985/city-wants-release-from-part-of-doj-agreement.html

CONCLUSION AND ANALYSIS

Mayor Tim Keller made it know on election night November 5, 2019 in a radio interview he intends to run for a second 4-year term as Mayor. Two years ago, Candidate Tim Keller campaigned to be elected mayor on the platform of implementing the U.S. Department of Justice-mandated reforms, increasing the size of the Albuquerque Police Department to 1,200 sworn police, returning to community-based policing and promising to bring down skyrocketing crime rates and promising not to raise taxes without a public vote even for public safety. Keller broke his promise when he signed a gross receipts tax increase enacted by the City Council in May, 2018. Based upon the contents of his 2020 State of the City Address, it is apparent that the issues have not changed much and they will be the same issues in the 2020 election. The difference is, voters will be deciding if in fact Mayor Tim Keller has kept his promises and done a good job. It easier to run for office making promises with no record as opposed to defending a record.

Bernalillo County Sheriff Manny Gonzalez has made it known that he intends to run for Mayor in 2021 on a law and order platform saying Keller has made things worse when it comes to crime and the management of APD, a theme that just may resonate with voters. It is anticipated that the Republican party will be seeking a candidate of their own that could win the election with the Democrat vote split between Keller and Gonzalez. Keller and Gonzales could easily split the Democratic Vote as was the case in 2009 when incumbent Mayor Marty Chavez lost his bid for a 4th term to Republican Richard Berry.

Guest Editorial: “Gov. Takes Too Much Too Soon Route To Fix Pension”; “Revamping PERA Governing Board; Governor MLG Risking Major Backlash From Core Constituency

The Public Education Retirement Association (PERA) is the legislative created and state regulated retirement association for all state, county and municipal government employees. PERA administers the pension funds for active, inactive, and retired public employees in New Mexico. PERA includes state, county and municipal plans, firefighters, police officers, blue collar workers and various municipal plans.

PERA pays pensions to more than 40,000 retirees and also has upwards of 50,000 active members who are working and paying into the system. PERA manages a $15 billion pension fund and income from fund investments that helps pay pensions owed.

PERA SOLVENCY MEASURES ON 2020 GOVERNOR’S CALL

Over the last few years, it has been reported that PERA is in serious financial trouble because of long term liabilities of benefits to paid retirees in the future will exceed literally by the billions the funds that are available. PERA’s estimated unfunded liability, which is the gap between future retirement benefits owed and expected future assets on hand, has increased over the past four years from $4.6 billion to $6.6 billion in unfunded liability.

The PERA’s retirement system’s funded ratio, which is the plan’s assets divided by its liabilities, is now at 70%. The PERA governing board has set the goal to reach 100% funding of liabilities by the year 2043. The PERA pension system’s $6.6 billion in unfunded liabilities, or shortfall, has already damaged New Mexico’s credit rating.

For the 2020 legislative session, Governor Michelle Lujan Grisham has endorsed a complex proposal to overhaul New Mexico’s chronically underfunded PERA proposed by Democratic legislative leaders. The proposal builds on the work of a PERA task force established by the governor with some major changes. The most controversial recommendations by her task force involved the 2% cost of living (COLA) currently guaranteed to all retirees.

According to media reports, the legislation will establish a “profit-sharing” model for the annual cost-of-living adjustments that most retirees now receive. Rather than an automatic 2% increase in their pensions each year, the actual amount would fluctuate, anywhere from 0.5% to 3%, depending on investment returns.

Under the proposed legislation, government employers and employees will pay more into the system with a schedule that phases in higher contributions. Other changes will help retirees who are older than 75, disabled or receiving pensions of less than $25,000 a year, despite 25 years of service.

With respect to annual cost-of-living adjustments, they would be increased by half a percentage point to 2.5% for retirees who are 75 or older. This was a change made after requested by Governor Lujan Grisham.

Under the proposed legislation, many retirees would receive a temporary reduction in their cost-of-living increases. For 3 years, retirees would get an extra check equal to 2% of their pension. Such a “one lump” sum payment in one check would eliminate the compounding effect of having each 2% build on the previous 2% increase.

The PERA reform legislation also calls for allocating $76 million in state funding into the system to cover the cost of the extra checks. According to PERA officials and legislative finance analysts, the net effect would be an immediate $700 million reduction in the pension system’s unfunded liability.

The retirement system’s funded ratio is now about 70% and the legislative changes are aimed at wiping out the liability within 25 years resulting in 100% funding of future liabilities.

https://www.abqjournal.com/1397498/governor-key-legislators-endorse-pension-changes.html

GOVERNOR’S PROPOSED 2020 BUDGET AND LEGISLATORS PROPOSED BUDGET

On January 21, 2020, the 30-day New Mexico legislative session begins. The 30-day session is referred to as the “short session” which are held in even number years while 60-day sessions occur in odd number years. Thirty-day sessions are limited to budgetary matters and issues approved for consideration and placed on what is referred to as the Governor’s call. Revenue bills, such as taxation, may also be considered during 30-day sessions. Governor Michelle Lujan Grisham has announced that she will place on the agenda the PERA Solvency measures.

On January 6, 2020, Governor Michelle Lujan Grisham released her proposed executive budget to be considered during the 2020 New Mexico Legislative session. The proposed budget is a $7.68 billion dollar budget reflecting a 8.4% increase with a 25% General Fund reserve set aside in case projected revenue levels do not materialize. Under the proposed budget, spending will again rise for the second consecutive year. If adopted by the legislature state spending will increase by $596.3 million, the 8.4% increase over the current fiscal year that ends June 30, 2020. Under the Governor’s budget, money is also being set aside in cash reserves in case projected revenue levels do not materialize. In her 2020 proposed budget, the Governor is proposing a $76 million allocation for PERA but is not proposing any funding for Educational Retirement Board (ERB), the educators retirement plan.

On January 7, 2020, one day after Governor Michelle Lujan Grisham released her proposed executive budget, the New Mexico Legislative Finance Committee (LFC) released its own 2020 proposed budget. The Committee’s proposed budget calls for about $7.5 billion in ongoing spending which is an increase of 6.5% over current levels. The Governor’s proposed budget calls for an 8.4% increase. The Legislative Finance Committee is recommending $150 million to help the state’s two main pension systems, the PERA system and Educational Retirement Board (ERB) for educators. The Governor is proposing $76 million for PERA and no funding for ERB, the educator’s retirement system.

PRESIDENT OF RETIRED PUBLIC EMPLOYEES OF NM RESPONDS

On December 30, the Albuquerque Journal published a guest editorial column on the PERA solvency legislation written by Joel Pafford, the president of the Retired Public Employee’s of New Mexico Association board of directors. Following is the column with the link to the article:

TITLE: Gov. takes too-much-too-soon route to ‘fix’ pension

“The governor’s recent proposal regarding PERA is particularly alarming and galling because it is completely unnecessary.

Her idea is to cobble together over $6 billion in just 25 years to fully pre-fund one of New Mexico’s two large public pension funds. She is not proposing to do the same thing with the other fund, which has an even worse funding ratio.

There are almost 4,000 public pension funds around the country and only a handful are 100% funded. In aggregate, these funds have always operated far short of full pre-funding.

What’s going on? Quite simply, it has become the mantra of some pension fund administrators, financial consultants that benefit from such schemes and ideological zealots that government pension funds should be 100% funded. These individuals are wrong. A recent report from the highly respected Brookings Institution, “The Sustainability of State and Local Government Pensions: A Public Finance Approach,” debunks this false narrative. Tom Sgouros also discusses these issues in his 2017 report for the Haas Institute at the University of California, Berkeley.

Not only is it not necessary for these funds to achieve 100% funding, there are serious risks in attempting to achieve full pre-funding. Funds attempting to reach full pre-funding generally take more risks in their investment portfolios. Most importantly, trying to achieve full pre-funding, especially over a relatively short period, requires significant sacrifices and financial pain. This includes cuts to retirees’ COLA benefits, increases in contribution rates and significant subsidies from state government, all elements of the governor’s proposal.

The Brookings report argues for sustainability and a pay-as-you-go (PAYGO) model, rather than full pre-funding. The authors make a compelling case not to fully prefund public pension funds, especially in today’s low-interest rate environment. In addition, there is almost no advantage to starting the stabilization process immediately as opposed to years in the future.

It is worth noting that PERA has not met its own performance benchmarks for several years, during a time of record stock market highs. A new study also found that PERA is among the worst-performing public pension funds in the Southwest over the past decade.

There should be a fair and honest process to address PERA. We envision a process where independent expert consultants analyze multiple models and seek extensive public input in a transparent and collaborative manner. The Legislature should issue [Request For Proposal] … to analyze models that run the full gamut of options. They should consider ideas such as reducing the annual multiplier as well as closely look at the individual funds or divisions within PERA, as several divisions are underfunded while others are fine or over funded.

There is no immediate crisis. In the private sector, pensions should probably be 100% funded to protect workers in case of bankruptcy. Governments, on the other hand, may encounter periodic difficulties due to economic cycles and fluctuating revenues, but they are generally not going to declare bankruptcy and go away. Current employees help pay the benefits of current retirees and this cycle continues indefinitely, much like social security.

Fully prefunding public pension funds amounts to covering the total future benefits of current retirees and workers, even young workers that have just started their careers and will not retire for several decades. The real question of a plan’s fiscal viability is whether it can continue to pay its obligations each year, not whether it can cover all future obligations today. We likely only need to reach a funding ratio of 70-80% to achieve complete stability and sustainability.

It is much more important to have a plan that attempts to reach sustainability over a long period rather than have a quick fix that may be overly burdensome to one generation or group. The current proposal will create lasting divisions and resentment and embarks New Mexico on a path most commonly advocated by ideological zealots rather than our traditional path of consensus and working together as one community.”

Following is the link to the Journal guest column

https://www.abqjournal.com/1404955/gov-takes-toomuchtoosoon-route-to-fix-pension.html

PROPOSED CHANGES TO PERA BOARD SELECTION AND QUALIFICATION

According to Democratic State Senator George Munoz, (D) Gallup, he has seen the Public Employees Retirement Association Board degrade into petty bickering and fighting at board meetings. During the past year, the monthly PERA boarding meetings have had discussions ranging from who should pay for snacks, to one member accusing another member of trying to steal her phone which led to a pause in the meeting.

After sitting in on multiple PERA meetings and seeing the board’s conduct, Munoz decided to sponsor a bill to be introduced in the upcoming 2020 legislative session that will change how board members are selected. The current board members are voted into their positions by PERA retirees and participants.

In response to the Board’s conduct, State Senator Munoz has pre-filed legislation for the 2020 legislative session that begins on January 21 that if enacted will change how the PERA Board functions. If the bill passes, it will change how the board is formed and require all members to have financial experience.
According to Munoz:

“We want the Governor to appoint three members. We want the counties and municipalities to appoint two members. We want the retirees to have two members, so we get diversity. … We need a board that’s constant, stable, and steady and understands the problem with our PERA fund right now.”

Think New Mexico, a local think tank, supports the proposed legislation.

https://www.krqe.com/news/politics-government/state-senator-sponsors-bill-to-revamp-pera-board/

On January 21, 2020, the 30-day New Mexico legislative session begins. Thirty-day sessions are limited to budgetary matters and issues approved for consideration and placed on what is referred to as the Governor’s call. State lawmakers have already pre-filed nearly 90 bills ahead of the upcoming legislative session, but what actually gets put on the agenda is totally up to the Governor.

COMMENTARY AND ANALYSIS

Changing the process on how PERA board members are selected and adding pension finance backgrounds as qualifications in all likely will not be placed on the Governors call. Such a dramatic change also runs significant risk of alienating the overwhelming majority of PERA retirees and contributors who want a major say in the selection of board members by virtue of voting for them. The PERA Board employs a professional staff of analysts and pension experts which is how it should be but requiring board members to have financial background or expertise in pension investment will likely be counterproductive.

PERA Governing Board meetings held during the general election race for Governor were packed with standing room only by very angry and very upset PERA retirees demanding explanations and information on the solvency of PERA pension system which was being reported as failing. Audiences were extremely diverse, and retirees vote. The audiences were at times confrontational with the PERA Board members. Accusations of mismanagement of the funds were also made.

During her campaign, candidate for Governor Michelle Lujan Grisham said she would oppose cuts to benefits, including any reduction in the annual inflation-related pension adjustments that retired state workers and teachers receive. According to a campaign spokesperson at the time:

“She does not believe that New Mexico needs to eliminate our defined benefit system for current or future educators and state employees and opposes any reduction in cost-of-living adjustments.”

The PERA solvency plan the Governor supports runs a significant risk of alienating some of her strongest supporters that could signal trouble for her in three years when see seeks a second term. Governor Lujan Grisham received a significant number of union endorsements and campaign donations especially from state government unions such as AFSME. The PERA solvency changes could very well “poke the bear” of 90,000 PERA contributors, retirees and their family members.

The PERA governing board has set the goal to reach 100% funding of liabilities by the year 2043 declaring there is a PERA pension fund “crisis”. The truth is, there is no crisis and the PERA Pension plans are solvent for at least 23, if not more years. The PERA pensions funds have always operated in the red, with investments ebbing and flowing to pay retirement benefits as they incur. It is the funds financial advisors who want a 100% funded program, no doubt motivated by getting their hands on more money to invest and getting hirer investment fees.

The New Mexico PERA pension program has 70% of funded liability in current funding assets to future liability making it one of the strongest pension programs in the country. The two major pension funds that are currently problematic are shortfalls of 7.99% of State General pensions and 13.87% for Municipal Fire Pension programs. Contribution shortfalls of State General and Municipal Fire are up and until 2066. PERA management has failed to articulate in clear terms all the options available to insure PERA will reach a 100% funding ratio by 2043.

Notwithstanding, PERA Pension reform must again be undertaken in some form to deal with to some extent the shortfall of underfunded liabilities. The New Mexico Legislature has time to address the PERA pension system and the sky is not falling.

The legislature can make adjustments like increasing age of retirement, change the formula to calculate retirement, make increases in contributions and infuse state funding into the pension funds, but only those that are underfunded which currently the municipal fire fighters fund and the general worker fund. Better management of the pension funds and increasing returns on investment are always relied upon to pay for benefits.

Joe Monahan Blog: “Raise Retirement Age, Leave Worker Contributions And COLA Alone”; ALSO: PERA Task Force Recommendations; Study Shows There Is NO Immediate Crisis

Governor Michelle Lujan Grisham Seeks “Red Flag” Law Enactment In 2020 Legislative Session; Other Gun Control Measures Should Be Considered, Including Repeal Of New Mexico’s Open Carry

On January 8, during a press conference held in the city of Las Cruces, New Mexico Governor Michelle Lujan Grisham called upon state lawmakers to pass a “red flag law” during the 2020 legislative session that begins on January 21. The “red flag” legislation is being co-sponsored by State Representatives Daymon Ely, D-Corrales, Joy Garratt, D-Albuquerque and State Senator Joseph Cervantes, D-Las Cruces.

During the January 8 press conference held in Las Cruces at the Doña Ana County Sheriff’s office, the Governor was flanked by Doña Ana County Sheriff Kim Steward, Representative Daymon Ely and Senator Joseph Cervantes, D-Las Cruces. Both Ely and Cervantes have supported gun control legislation in past.

During the press conference Gov. Lujan Grisham said a young cousin of hers suffering from mental illness committed suicide with a gun in 2012, and she had this to say:

“That is a horrific tragedy that plays out in so many families across America. And we cannot afford to lose one more nephew, one more first cousin, one more son, one more daughter, one more mother, one father, one more brother, one more sister [to suicide] … This is a temporary removal of a firearm from an individual who poses an extreme risk or threat to themselves or others.”

Senator Cervantes said the mass shooting at a Walmart in nearby El Paso in August showed the clear need for a red flag law and commented:

“The tragedy of the Walmart shooting is even more deplorable because the shooter, the killer, the murderer published a manifesto before the shooting online, announced his intentions, specifically to target Mexicans, said he wanted to assure Hispanics did not have the voting voice in this county. … Yet with that warning, with that manifesto published and known, no action was taken.”

State Representative Ely noted that in New Mexico, suicides make up 70% of all firearm deaths and the state’s suicide rate is at least 50% higher than the national rate. During the press conference, Ely had this to say:

“I’m confident that we are going to get this bill out of the house and out of the senate and to the governor’s office. We can no longer turn a blind eye to what’s happening with guns in our community”.

PROPOSED LEGISLATION

The legislation was pre -filed on January 8 ahead of the 2020 Legislative session. Under the proposed law a law enforcement officer or family member requesting an extreme-risk protection order would provide a sworn affidavit explaining in detail the facts and circumstance as to why the order is needed against a person. A judge could then issue a 15-day emergency order to seize the weapons and ammunition from that person and would schedule a hearing to determine if there was a need for a one-year order. When the court order expires, the guns and ammunition would then be returned to the individual.

According Representative Ely:

“This bill is a good balance between people’s rights to bear arms and public safety … It protects the public. It protects people who might be an imminent threat of suicide, and it protects law enforcement. That’s what this bill does.”

According to Governor Lujan Grisham the bill assures due process for gun owners by saying:

“You have to have a sworn affidavit, you’re under oath so there are real repercussions for someone who might use this in a negative way because that’s not the intent here at all.”

Zac Fort, the President of the New Mexico Shooting Sports Association said his organization opposed the red-flag law saying previous versions of the bill failed to protect the rights of gun owners. You can also anticipate the the National Rifle Association (NRA) will oppose the legislation in some manner.

https://www.abqjournal.com/1407846/governor-asking-lawmakers-to-approve-red-flag-law.html

Sheriffs across New Mexico announced they are opposed to the “red flag” law. Sierra County Sheriff Glenn Hamilton says the New Mexico Sheriffs’ Association wants to ensure gun owners keep their due process protections.

https://www.kob.com/new-mexico-news/sheriffs-oppose-red-flag-gun-legislation-in-new-mexico/5603938/?cat=500

RED FLAG LAWS EXPLAINED

A “red flag law” is a gun control law that permits police, family members or third parties to petition a state court to order the temporary removal of firearms from a gun owner or a person in possession of a gun who may present a danger to themselves or others. The action is civil in nature and it is not a criminal action nor a civil commitment proceeding to determine mental competency. Red flag law court orders are also referred to as Extreme Risk Protection Orders (ERPOs). Red Flag laws as well as Universal Background Checks and closing the “gun show loophole” have become popular gun policy proposals raised in the aftermath of mass shootings like those in Sandy Hook, Parkland, El Paso and Dayton.

Usually under “red flag laws”, if a judge after an evidentiary hearing finds that person is dangerous to himself or others, that person must surrender all firearms within their possession or control to the police for a specified period of time. During that period of time, the person is also not allowed to buy or sell guns. Further, it is a temporary order, very much like a temporary restraining order, it does not permanently keep guns away from individuals who might cause significant risk. Such court orders are only as good as the enforcement behind it by law enforcement.

The biggest criticisms against “red flag” laws are that they violate a person’s US Constitution Second amendment rights to bear arms. Another major criticism is that a person’s constitutional right of due process of law is violated when a court can issue a temporary “ex parte” order to seize guns from people without an evidentiary hearing and without any notice. (NOTE: An “ex parte” order is a court order granted against a person not present at the hearing and at the request of and for the benefit of another party.)

If lawmakers pass the law, New Mexico would join 17 other states and the District of Columbia with “extreme risk protection orders.” Those states that have enacted “red flag” laws are: California, Colorado, Connecticut, Delaware, Hawaii, Florida, Illinois, Indiana, Maryland, Massachusetts, Nevada, New Jersey, New York, Oregon, Rhode Island, Washington.

https://gunsandamerica.org/story/19/08/05/what-is-a-red-flag-law/

NEW MEXICO’S TWO OTHER GUN CONTROL MEASURES

Enactment of a “Red Flag” law would be a natural extension or a continuation of the work of the 2019 New Mexico legislature. Two major gun control measures were enacted by the 2019 New Mexico Legislature, one requiring back ground checks on private sales of guns and the other requiring domestic violence abusers to surrender firearms.

On March 8, 2019, Governor Michelle Lujan Grisham signed into law Senate Bill 8 (SB-8) enacted by the 2019 Legislature which requires background checks for guns sold privately and at gun shows. Debate on the legislation was hot and heavy, but SB 8 passed the Senate on a 22-20 vote and passed the House 42-27 vote. The Governor signed the legislation and it became law effective July 1, 2019.

The 2019 New Mexico Legislature passed Senate Bill 328 which prohibits gun possession by someone who’s subject to an order of protection under the Family Violence Protection Act. The bill was jointly sponsored by Democratic Senators Joseph Cervantes of Las Cruces and Antoinette Sedillo Lopez of Albuquerque and Democratic Representative Deborah Armstrong of Albuquerque. Under the enacted legislation domestic abusers must surrender their firearms to law enforcement. The gun possession prohibition also applies to people convicted of other crimes such as battery on a household member.

UNITED STATES HISTORY OF MASS SHOOTINGS

Since 1995, the United States has had 95 mass shootings, including seven of the 11 deadliest. Three of the 11 biggest mass shootings in American history have now taken place in the United States during the last two years.

There is no doubt we have a deadly mass shooting epidemic on our hands.

The mass shooting with guns in the last 10 years include: Orlando, Florida (49 killed, 50 injured), Blacksburg, Va. (32 killed), San Ysidro, Cal (21 killed), San Bernardino, (14 killed), Edmond Oklahoma (14 killed), Fort Hood (13 killed), Binghamton, NY (13 killed) Washington, DC (12 killed), Aurora, Colorado (12 killed), Sandy Hook Elementary School, Newtown, Conn (21 children and 6 adult staff members killed) and the largest mass shooting in this country’s history that occurred in Las Vegas, Nevada with at least 59 dead and at least 515 wounded and the Parkland/Stoneridge High School shooting that resulted in 17 children’s deaths. Since 1995, the United States has had 98 mass shootings, including seven of the 11 deadliest. Three of the 11 biggest mass shootings in American history have now taken place in the United States in the last two years. . There is no doubt we have a deadly mass shooting epidemic on our hands.

NM AND ABQ VIOLENT CRIME STATISTICS REFLECT EPIDEMIC

It has been reported that 400 New Mexicans get killed every year to gun violence. On Monday, September 24, 2018 the FBI released its “Crime in the United States” report providing the statistics on all the crimes reportedly committed in New Mexico and Albuquerque and in 2017.

https://www.abqjournal.com/1224917/fbi-abq-crime-rate-up-in-2017.html

Since 2010, violent felony crime rates and property crime rates have steadily increased in Albuquerque and in New Mexico statewide. According to the FBI report, the increase in crime in both New Mexico and Albuquerque continued in 2017. Statewide, New Mexico violent crime rates rose by 12 percent and property crime rates were up by 0.5 percent in 2017. The FBI reported that New Mexico had 16,359 violent crimes reported and 82,306 property crimes reported in 2017.

All the statistics for New Mexico and Albuquerque are in sharp contrast with national trends that crime is going down in the United States as a whole. According to the FBI report summary, in 2015 and 2016, violent crime had been increasing across the United States but in 2017, violent crime decreased 0.2% with the overall rate falling 0.9% percent.
In the United States as a whole, the property crime rates dropped for the 15th straight year, decreasing by 3% across the country. Nationally, the crime rate is 383 violent offenses per 100,000 residents and 2,362 property crimes per 100,000 residents.

Albuquerque’s violent crime and property crime rates are more than triple the national crime rates. On January 10, 2019, it was reported New Mexico is number one 1 In fatal police shootings. According to the Fatal Force database created by The Washington Post:

“For the fourth year in a row, New Mexico placed either first or second in the nation for its rate of deadly shootings by law enforcement officers”
In 2018, New Mexico ranked first in the nation, finishing the year with 20 fatal shootings by police officers around the state, a rate of 9.59 per 1 million people. Alaska had 7 total fatal police shootings was a close second, with a rate of 9.5 fatal police shootings per 1 million people. Connecticut had the smallest number of fatal police shootings with 0 reported.
In 2017, the state came in as No. 2, behind Alaska, but it was first in the nation in 2016. In 2015 New Mexico was in second place, behind Wyoming.”

https://www.abqjournal.com/1266910/nm-ranks-no-1-for-fatal-police-shootings.html

On December 18, 2019, US Attorney General William Barr announced that the Department of Justice (DOJ) is initiating a major crackdown aimed at driving down violent crime in 7 of the nation’s most violent cities in the country. Not at all surprising is that Albuquerque is one of those cities. The other 6 cities are Detroit, Baltimore, Cleveland, Kansas City, Memphis and Milwaukee. All 7 cities have violent crime rates significantly higher and above the national average.

According to Attorney General William Bar, Albuquerque has a violent crime rate that is 3.7 times the national average per capita , and the cities aggravated assaults are 4 times the national average per capita. Albuquerque’s FBI Uniform Crime statistics for the years 2008 to 2018 reveal just how bad violent crime has increased in Albuquerque over the last 10 years. Violent crimes include murder, rape, robbery and aggravated assaults and have all increased. The hard numbers for the last 10 years reflect that crime has not declined much and that like a waive on a beach, it had “ebbed and flowed” over the years but have risen none the less to all-time highs.

https://www.petedinelli.com/2019/12/19/doj-operation-relentless-pursuit-includes-albuquerque-city-needs-to-ask-ag-barr-and-doj-to-dismiss-casa/

On December 31,2019 the Albuquerque Police Department (APD) officially recorded the 82 homicide for the city, an all-time record. On January 1, 2020, APD reported the first homicide of the year. It was on December 9, 2019, the city recorded its 74th homicide breaking the previous record of 72 murders set in 2017. Before 2017, the last time the City had the highest number of homicides in one year was in 1996 with 70 murders that year. In addition to the 82 homicides in 2019, APD Homicide detectives are also working on a back log of active cases from previous years.

DOMESTIC TERRORISM SUMMIT

On August 6, 2019 Democratic Governor Michelle Lujan Grisham announced a “Domestic Terrorism Summit”. She invited top state law enforcement officials and legislative leaders from both political parties. The call for the summit was in reaction to the August 3 mass shooting in El Paso, Texas that killed 22. The goal of the summit was to come up with precautions against domestic terrorism. By all news report accounts, the summit was a success.

After the summit, major proposals were announced including:

1. Increase hate crime penalties. The criminal penalty for those convicted of hate crimes would be increased. Currently, if a criminal defendant is proved to be motivated by the victim’s race, religion, age, gender or sexual orientation, the jail sentence can be enhanced by one year.

2. Expand the State’s mental health system. This has been a major priority of the Governor given her longstanding positions on mental health over the years.

3. Create a new anti-terrorism law enforcement unit. This no doubt will be the responsibility of the Department of Homeland security to implement and coordinate state wide law enforcement efforts.

4. Improve data-sharing about potential threats. The state Homeland Security and Emergency Management Department will start enrolling all 33 county sheriffs in a data-sharing program so that individuals deemed a potential risk can be flagged and monitored.

5. Extending background checks on private gun sales to sellers of firearms.

ANALYSIS AND COMMENTARY

It should come as no surprise to anyone that Governor Michelle Lujan is call upon the 2020 New Mexico Legislator which starts on January 21, 2020 to enact a “red flag” law. Throughout all her years as a congresswoman for the First Congressional District, Michelle Lujan Grisham was a strong advocate for gun control measures on the federal level and she continues to do so as Governor on the state level. Governor Michelle Lujan Grisham knows full well New Mexico needs to enact reasonable and responsible gun control measures and that a “red flag law” is just one step in the right direction.

STEEP CLIMB FOR RED FLAG LAW

During the 2019 session, a red flag bill sponsored by Democratic Representative Damon Ely past the house but failed in the Senate. The bill was one of the more controversial bills causing New Mexico Sheriffs around the state to lobby heavily against it. After the 2019 session, the Governor signaled that she would place another “red flag” law on the 2020 call. You can now expect the same opposition from law enforcement during the upcoming session unless she acts to get their support.

Elected County Sheriffs repeatedly spoke out against the gun legislation during legislative committee hearings. Some elected sheriffs testified that they simply would not enforce the legislation if it became law. Twenty-eight of New Mexico’s counties as well as a few municipalities in the state have passed “Second Amendment Sanctuary” ordinances in defiance to the enacted legislative gun control measures. Things got so bad that Attorney General Hector Balderas sent a strongly worded letter to all the elected Sheriff’s reminding them of their legal obligation to enforce the laws regardless of whether they agree with the legislation. The Attorney General wrote the sheriffs saying:

“As law enforcement officials we do not have the freedom to pick and choose which state laws we enforce. … In short, the taxpayers of your city or county assume the financial risk of your decision to impose your personal views over the law. … [Discretion] cannot subvert the rule of law. All New Mexicans, including public [law enforcement] officials, are equally subject to the law.”

https://www.petedinelli.com/2019/04/08/i-will-not-enforce-the-law-admission-of-negligence-by-law-enforcement/

Lujan Grisham has said a “red flag” law will make communities safer and for that reason she has attempted to work with the Sheriff’s to reach a compromise, but has been unable to win support for a “red flag” law thus far from the Sheriffs. The New Mexico Sheriffs Association opposes “red flag” laws believing they are ineffective and that they infringe on Second Amendment constitutional rights to bear arms.

Sheriffs are elected officials just like the Governor, and as such the Governor has little control over how they should approach law enforcement. For that reason alone, the Governor needs to do whatever she can to convince all New Mexico Sheriff’s to support the law. Also, Attorney General Hector Balderas should lend his weight and prestige of his office to get the law enacted.

Included in the discussions with the elected Sheriff’s should be an offer of state funding to support the enforcement of the law. The Governor needs to ensure that there are sufficient votes in both the House and Senate to enact the legislation even before the session begins, otherwise it may be a lesson in futility.

COMPREHENSIVE DOMESTIC TERRORISM AND GUN VIOLENCE ACT

The New Mexico Legislature needs to enact a Comprehensive Domestic Terrorism and Gun Violence Act. Such legislation needs to include:

1. A Ban in New Mexico the manufacture, sale and distribution to the general public of semi-automatic firearms, AR-15 style rifles, assault weapons, semi-automatic pistols, semi-automatic shotguns and weapons to the general public in New Mexico.

2. Prohibit in New Mexico the sale of “ghost guns” parts. Ghost guns are guns that are manufactured and sold in parts without any serial numbers to be assembled by the purchaser and that can be sold to anyone.

3. Require in New Mexico the mandatory purchase of “liability insurance” with each gun sold as is required for all operable vehicles bought and driven in New Mexico.

4. Expand restrictions on firearm possession by or transfer to a person subject to a domestic violence protection order or a person convicted of a domestic violence misdemeanor.

9. Allocate funding to the school systems and higher education institutions to “harden” their facilities with more security doors, security windows, and security measures and alarm systems and security cameras tied directly to law enforcement 911 emergency operations centers.

10 . Introduce a Constitutional Amendment repealing the New Mexico Constitutional provision that allows the “open carry” of firearms. This would require a public vote. There is no doubt such action would generate heated discussion given New Mexico’s high percentage of gun ownership for hunting, sport or hobby, but it’s a discussion that should be made.

CONCLUSION

The two major gun control measures enacted by the 2019 New Mexico Legislature, one requiring back ground checks on private sales of guns and the other requiring domestic violence abusers to surrender firearms, were a good start to addressing New Mexico’s gun culture. The enactment of a “red flag” law will be another small step in the right direction. Far more needs to be done by the New Mexico legislature to combat gun violence and to keep the public safe.

Unless congress acts, we can expect more mass shootings at soft targets such as schools, movie theaters, malls, department stores and major public events like concerts and at state fairs. The mass shootings will again be followed by the predictable cycle of news coverage, more outrage, more nighttime candle vigils, more funerals, more condolences, more rhetoric demanding action. It could easily happen in New Mexico

New Mexico Governor Michelle Lujan Grisham and the New Mexico State Legislature are wise to do all they can and enact as many state laws to prevent gun violence in the State as they can.

For a related blog articles see:

Gun Sale Background Checks And Requiring Domestic Abusers To Surrender Firearms Responsible Gun Control

Governor’s Domestic Terrorism Summit Called “Road Map” For 2020 Legislative Session; More Proposals; It Could Happen Here

NM Legislature Should Avoid Traditional Licensing Of Recreational Cannabis Based On Population; “Let Supply And Demand” Market Forces Decide

On January 21, 2020, the 30 day New Mexico legislative session begins. The 30-day session is referred to as the “short session” which are held in even number years while 60-day sessions occur in odd number years. State lawmakers have already pre-filed nearly 90 bills ahead of the upcoming legislative session, but what actually gets put on the agenda is totally up to Governor Michelle Lujan Grisham. The governor has made it known that she wants marijuana legalized at this year’s session, which begins January 21.

On January 1, 2020, the State of Illinois became the latest state to legalize recreational cannabis. The recreational use of cannabis is now legalized in 11 states: Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington, the District of Columbia. During the 2020 legislative session that begins on January 21, 2020, the New Mexico Legislature will likely attempt to make New Mexico the latest state to legalize recreational marijuana.

On January 1, 2020, New Mexico State Representative Javier Martinez, (D)-Albuquerque, made it known he is pre-filing a new bill to legalize cannabis. Representative Martinez served on the task force created by Gov. Michele Lujan Grisham the worked-on recommendation to legalize marijuana here in New Mexico. The group was made up of law enforcement, medical professionals and politicians and met several times throughout the state to discuss ideas and come up with recommendations to the governor.

According to Representative Martinez:

“I can’t wait for New Mexico to be next in line and be a leader in the country. … The country is following that lead, and New Mexico certainly wants to be among the first to legalization. … Not only to legalize but do it in the right way. One of the things I learned from the process is the openness and willingness of people across the state to look at recreational cannabis with an open mind. … There is going to be a very tight regulatory framework around the industry to ensure not only public safety, but quality for customers”.

Taking recommendations from the Governor’s Task force group into consideration, Martinez is pre-filing a new bill in the coming days to legalize cannabis. He said under the new legislation, recreational cannabis would be a private industry, regulated similar to the way the state does liquor stores. Martinez said his legislation will divert funding from cannabis sales to law enforcement programs statewide to help fight the war on drugs.

Martinez added that in order to protect the existing medical cannabis program, the gross receipts sales tax would be eliminated on any medical cannabis product to cut costs. He also suggested subsidies would be created for low-income patients.

A bill was passed in the House last year, but it never made through the Representative Martinez expressed high hopes that during the 2020 legislative session his colleagues in the House and Senate will be more accepting of the idea.

https://www.krqe.com/news/new-mexico/state-lawmakers-discuss-new-bill-to-legalize-marijuana/

2019 LEGISLATIVE EFFORTS THAT FAILED

On March 7, 2019 the state House passed House Bill 356 (HB 356) with a two-vote majority of 36 to 34 that would have legalized the recreational use of marijuana. HB 356 bill included a provision for state run and regulated stores. House Bill 356 was a broad marijuana legalization proposal and dedicated some of the tax revenue from cannabis sales to research into cannabis impairment, purchasing roadside testing equipment for law enforcement and to train police officers as drug recognition experts when drivers are stopped. Every Republican Representative in the House voted against HB 356 joining 10 Democrats in opposition to it. The bipartisan proposal to allow cannabis sales at state-run shops narrowly cleared the state House but failed to make it through the Senate. After the Legislature adjourned on March 21, 2019, Governor Michelle Lujan Grisham announced she would add the issue of legalizing recreational marijuana use to the 2020 legislative agenda.

TASK FORCE RECOMMENDATIONS

On June 28, 2019, Governor Michelle Lujan Grisham announced the creation of a “Cannabis Legalization Working Group.” The task force consisted of 19 members including the Democratic and Republican legislators who sponsored the unsuccessful legislation and included representatives of a labor unions, sheriff’s department, health care business, Native American tribes, medical cannabis businesses, a county government association, and commercial bank and hospital company.
On August 15, 2019, the Governor’s Cannabis Legalization Working Group was told by a consultant that if recreational marijuana is legalized in New Mexico, the state can expect out-of-state tourism and the reduced stigma and other factors to help fuel sales of recreational marijuana. It was reported that the demand for recreational marijuana and related cannabis products has far outpaced expectations in the State of Colorado since it was made legal. It was estimated the annual revenue for state and local governments could hit $120 million in five years, well beyond what legislative analysts estimated earlier this year. The market will also depend on the tax structure and the of regulatory decisions that will have to be implemented.

https://www.petedinelli.com/2019/08/20/legalizing-recreational-pot-will-be-economic-boost-to-new-mexico/

On September 10, 2019, the Governor’s task force endorsed and recommended a traditional licensing system for private companies that would grow and sell marijuana. The state would not operate retail stores. The licensing system is the same system as used for the State’s medical cannabis program. The proposal is a complete shift from the legislation that advanced through the state House last session where Democratic lawmakers embraced the idea of state-run cannabis stores as a part of a compromise with Republicans.

https://www.abqjournal.com/1364425/pot-task-force-recommends-licensing-system.html?fbclid=IwAR1Fc82VYfGAAw014_cRb2aqpeMbuXtmagRB5-bzszosfooTTUpWvSy00y8

According to Governor Lujan Grisham, a recent poll showed 76% of New Mexicans are in favor of recreational marijuana. However, the poll does not mean lawmakers will be able to agree on a plan that best benefits New Mexico. In interviews, the Governor has acknowledged that winning approval of the marijuana legalization plan will be difficult. She believes the Senate will be the biggest hurdle and she had this to say:

“I think cannabis [recreational legalization] is going to be really hard [and] it should be. That is not something to run into without being really clear. … If I have it on the call, I’m serious about getting it passed”

https://www.abqjournal.com/1402676/governor-finishing-legislative-agenda.html

https://www.koat.com/article/will-recreational-pot-be-legal-in-new-mexico-in-2020/30301730

COMMENTARY AND ANALYSIS

New Mexico has some of the highest DWI rates in the country and ranks #1 in heroin overdose deaths with the state having a serious opioid crisis. Legalizing recreational marijuana has the danger of contributing to the State’s high alcohol and drug addiction rates, a legacy no Governor wants to be remembered for after they leave office. Notwithstanding, a recent poll shows 76% of New Mexicans are in favor of legalizing recreational marijuana. Further, any recreational cannabis needs to ensure that the states highly successful medical marijuana program is not placed in jeopardy.

When it comes to the legalization of the recreational use of cannabis, Representative Javier Martinez and the legislature would be wise to avoid a traditional licensing system like it created for full-service alcohol licenses. With present alcohol full-service licenses, the number of licenses is capped and based on population numbers. Liquor licenses are now being sold for upwards of $1.5 million. The result is that only the wealthy or major restaurant chains and corporations can only afford the licenses.

The result and unintended consequence will be identical with recreational cannabis licenses purchased for a few thousand dollars from the state and held onto as an investment and for a windfall profit. The exact same thing will happen with recreational marijuana licenses unless the licenses are not tied to population.

There should be no limit on the number of recreational pot licenses that will create a market of licenses that increase value and are considered an investment by the private sector as opposed to regulation by the state to protect the public health safety and welfare. Let free market of supply and demand dictate the number of licenses needed. Those with good business models will prevail.

https://www.petedinelli.com/2019/10/01/do-not-place-population-cap-on-the-number-of-recreational-marijuana-licenses/

Governor Michelle Lujan Grisham Proposes $7.68 Billion Dollar Budget; LFC Releases Own Budget; Children And Education Once Again Biggest Priorities

On January 21, 2020, the 30-day New Mexico legislative session begins. The 30-day session is referred to as the “short session” which are held in even number years while 60-day sessions occur in odd number years. Thirty-day sessions are limited to budgetary matters and issues approved for consideration and placed on what is referred to as the Governor’s call. Revenue bills, such as taxation, may also be considered during 30-day sessions.

$7.68 Billion DOLLAR BUDGET PROPOSED

On January 6, 2020, Governor Michelle Lujan Grisham released her proposed executive budget to be considered during the 2020 New Mexico Legislative session. The proposed budget is a $7.68 billion dollar budget reflecting a 8.4% increase with a 25% General Fund reserve set aside in case projected revenue levels do not materialize. Under the proposed budget, spending will again rise for the second consecutive year. If adopted by the legislature state spending will increase by $596.3 million, the 8.4% increase over the current fiscal year that ends June 30, 2020. Under the Governor’s budget, money is also being set aside in cash reserves in case projected revenue levels do not materialize.

https://www.kob.com/new-mexico-news/gov-lujan-grisham-releases-latest-budget-proposal/5599544/?cat=500

https://www.abqjournal.com/1407078/gov-lujan-grisham-unveils-7-7-billion-spending-plan.html

The Governor’s increase in spending comes after several cash-lean years resulting in downsizing of government, at least a 15% reduction in state personnel and the slashing of state budgets to allow the previous Republican Administration to avoid any and all tax increases even if it affected essential services. The increase in budget is being fueled in large part by record-breaking oil production in the state’s southeast corner and the premium basin. Oil production has driven state revenue levels to an all-time high. Oil production royalty revenues has generated an estimated $797 million in “new” money for the coming fiscal budget year that begins July 1, 2020.

In a statement announcing her Executive Budget, Governor Lujan Grisham had this to say:

“This budget consists of both bold investments and prudent decisions that continue to fix what was left broken, addressing urgent needs and strategically investing in sustainable improvements over the long term – all at once. … We are investing for tomorrow and delivering today. … We are making bold investments and prudent decisions about sustainability all at once. … We are ensuring the growth we undertake is shielded from the outside economic forces that could, in the future, threaten our bottom line. … We recognize great opportunity necessitates both aggressive strategic action and fiscal responsibility.”

EDUCATION FUNDING MAJOR PRIORITY, AGAIN

New Mexico’s children continue to be the number 1 priority for the Governor in her Executive Budget for the 2020 session. Nearly half of the state spending increase proposed by the first-term Democratic governor for the budget year that starts July 1 would go toward education programs, from early childhood through higher education. The proposed budget contains an expansion of what has been labeled the “education moonshot” to cover education from cradle to career, with more than 47% of all new recurring spending going toward education, from early childhood to higher education priorities.

During last year’s 2019 legislative session, the legislature approved a whopping $3.2 Billion public education budget, a 16% increase over the previous year’s budget, out of the total state budget of $7 Billion. Included in the budget was a $500 million of additional funding for K-12 education. The 2020 Executive Budget expands the Public Schools budget by $200.3 million for a total General Fund recurring budget of approximately $3.4 billion in addition to a total of $42 million in one-time General Fund investments.

The proposed budget is close to $7.7 billion and includes a proposed 4% salary increase for New Mexico teachers and more money for school districts with a large number of “at risk” students. The state education system is still dealing with the Santa Fe District Court ruling that the state of New Mexico is violating the constitutional rights of at-risk students by failing to provide them with a sufficient education. The Judge found that it was clear that many New Mexico students are not receiving the basic education in reading, writing and math they should be receiving in our public-school system.

The proposed budget contains $200.3 million increase in the public school budgets. This includes the most significant back-to-back raises for educators in over a decade and increases in whole-child education, bilingual and multicultural frameworks, community schools, and STEAM education program.

The Governor’s budget maintains funding in the amount of $182 million for the K-5 Plus program and the Extended Learning Time program. These programs allow schools to extend their school year by 10 and 25 days. A $53 million increase to the at-risk index from 0.25 to 0.3 in the State Equalization Guarantee funding formula is being proposed. This increase builds on the $113.2 million in FY20 when the Lujan Grisham Administration almost doubled the at-risk index in the funding formula from 0.13 to 0.25.

The Governor is proposing a onetime $320 million new early childhood endowment trust fund that would help pay for early childhood education services. The endowment would increase state spending on prekindergarten, home visiting programs for new parents and other early childhood services. Lujan Grisham has previously described the endowment proposal for early childhood programs as a “prudent way” to expand spending on prekindergarten and reach “universal pre-K” that prepares every child to start school.

The Executive Budget Recommendation funds an additional $12 million to support educator and administrator development in the areas outlined in the Bilingual Multicultural Education Act and the Hispanic Education Act. The $12 million funding is considered critical to support low-income, Native American and Hispanic students, English language learners and students with disabilities which was singled out in the court ruling that the state of New Mexico is violating the constitutional rights of at-risk students by failing to provide them with a sufficient education.

CHILDREN, YOUTH AND FAMILIES DEPARTMENT

The Executive Budget includes a total increase of $22 million and a General Fund increase of $19.4 million for the Children, Youth and Families Department (CYFD). This includes funding for 62 new positions throughout the agency, including the protective services division and within the behavioral health services program. This addition builds on last year’s funding for new positions and brings the protective services division up to 863 funded positions.

The proposed Executive Budget includes funding of $8.1 million for rate increases for guardians, at-risk child care, the child advocacy center, safe and stable family contracts and kinship services. Kinship care providers are considered the backbone of our child welfare and foster family care. CYFD emphasizes prevention supports for at-risk children and youth and the proposed budget allots $8.5 million for behavioral health services.

EARLY CHILDHOOD EDUCATION AND CARE

The Executive Budget is proposing a funding increase of $74 million in General Fund to expand and improve on early childhood care services. Major components of the expansion include:

1. $26 million to expanding child care assistance by changing eligibility from 150% to 200% of the federal poverty level upon entrance and from 200% to 250% upon exit to serve an additional 4,163 children.

2. $15.6 million to provide wage supplements for over 3,000 child care providers statewide.

3. $8.4 million to expand private pre-k slots for three-year old children and three and four-year old children in mixed classrooms.

4. $11.5 million to expand public pre-k slots for four-year olds and conversion of part-day child care to full day child care and 637 new slots and 1,751 children to go from part time to full day care.

5. $3 million to expand home visiting services for over 1,000 families.

6. $3.5 million to expand the FIT program services to approximately 800 children.

7. $2.4 million to continue implementing provider rate increases based on the 2017 rate study.

$74 million is earmarked to increase early childhood services to establish a fully functioning Early Childhood Education and Care Department, including expanding child care assistance, raises for child care providers, more slots for pre-kinder garden, and expanded home visiting services

$320 million is earmarked to create the new “Early Childhood Trust Fund”, providing a dedicated and self-sustaining revenue stream to fund early childhood programs into the future.

HIGHER EDUCATION

The 2020 Executive Budget includes $839.9 million for Higher Education Institutions. The increase includes $5.6 million in formula funding for Instruction and General and $5.8 million for additional research and public service projects, which will total $141.1 million, and a $1.2 million increase for the Instruction and General line item for special schools.

Research and Public Service Projects include the following:

$1 million for the four flagship Centers of Excellence: Bioscience, Sustainable Agriculture, Cybersecurity, and Renewable Energy.

$2 million increase for the University of New Mexico Cancer Center to assist with their National Cancer Institute re-accreditation which is in addition to nonrecurring amounts for this purpose

$1.4 million increase for nursing programs within various institutions

$700,000 increase for early childhood and teacher education programs within various institutions

$100,000 increase for the New Mexico State University Dona Ana Branch Dental Hygiene Program; and a $375,000 increase for mental health programs.

The proposed Executive Budget creates a “New Mexico Opportunity Scholarship” that would benefit an estimated 55,000 college students and expand funding for child-care assistance and pre-Kindergarten programs statewide. The “Opportunity Scholarship” will cover the cost of tuition for students enrolled at New Mexico colleges and universities are expected to cost $25 million to $35 million. The scholarships offered will be aimed at covering the remaining gap for students after other awards and scholarships, including New Mexico’s lottery program scholarships or other sources. This funding will restore the initial promise of the Lottery Scholarship and re-establishing essential career pathways for New Mexicans across the state.

DEPARTMENT OF HUMAN SERVICES, MEDICAID EXPANSION, DEPARTMENT OF HEALTH

The Executive Budget proposal brings the Human Services Department’s (HSD) total General Fund budget to $1.22 billion. The Medicaid budget is increased by $55.8 million for a total Medicaid General Fund budget of $1.1 billion. The new funding will support Medicaid enrollment growth projections in Centennial Care stemming from targeted outreach and enrollment for New Mexicans who are Medicaid-eligible but not yet enrolled. The Department projects total enrollment of 850,000. Ensuring Medicaid is properly managed allows the Administration and State the flexibility to address the private health care market and responsibly oversee state investments in health care, which benefits New Mexicans while infusing billions of dollars into the state’s economy. Since the 2014 Medicaid expansion, more than 10,000 jobs have been created in New Mexico’s health care industry.

Major investments in caring for New Mexicans’ health and well being, including funding to serve additional New Mexicans on the Developmentally Disabled waiver waiting list and develop a new supports waiver service are being funded, as well as a $58 million increase to the Medicaid budget.

A $28.7 million increase to build a new behavioral health network, including community-based health services, is being proposed to effectively addressing substance use disorders, and addressing the behavioral needs of individuals in the justice system.

Funding is being provided to create a new Office of Wholesale Drug Importation within NMDOH to develop, plan, apply for & negotiate w/ the federal government for approval of a Canadian wholesale drug importation plan, working directly to reduce the costs of prescription drugs for New Mexicans.

$25 million is being proposed to create the “Kiki Saavedra Senior Dignity Fund”, addressing high-priority areas for seniors across New Mexico including transportation, food insecurity, physical and behavioral health services, case management, and caregiver services.

BEHAVIORAL HEALTH INITIATIVE

The single cruelest thing that former Republican Governor “She Who Shall Not Be Named” did was when she ordered an “audit” of mental health services by nonprofits in New Mexico based on questionable information. The audit eventually devastated New Mexico’s behavioral health care system.

In June 2013, under the direction of the former Republican Governor, the Human Services Department (HSD) cut off Medicaid funding to 15 behavioral health nonprofits operating in New Mexico. In 2014, more than 160,000 New Mexicans received behavioral health services, with most of those services funded by Medicaid, according to the Human Services Department. After the audits were completed, the former Republican Administration said that the outside audit showed more than $36 million in over billing, as well as mismanagement and possible fraud. Under the orders of the Republican Governor, Human Services Department agency brought in 5 Arizona providers to take over from New Mexico providers.

In early 2016, following exhaustive investigations, the Attorney General cleared all 15 of the healthcare providers of any wrongdoing and exonerated all of them of fraud. Even though the NM Attorney General found no fraud and cleared the nonprofits of fraud, the damage had been done to the nonprofits. With the Medicaid funding freeze, many of the 15 nonprofits could not continue and just went out of business leaving many patients without a behavioral health service provider. Lawsuits against the state were initiated by the mental health care providers.

Three of the five Arizona providers brought in by the previous Republican Administration in 2013 to replace the New Mexico nonprofits pulled out of the state. New Mexico’s mental health system is still struggling to recover.

https://www.abqjournal.com/749923/third-arizona-behavioral-health-provider-to-pull-out-of-state.html

Fifteen the behavioral health care providers forced out of business by the previous Republican Administration sued the State for damages. Since January 1, 2019 when Governor Michelle Lujan Grisham took office, 10 behavioral health nonprofits have settled their claims against the state with State Risk Management paying upwards of $15 million in damage to settle the cases. Governor Lujan Grisham has said repeatedly that the forced closure of the 15 behavioral health program caused severe disruption to New Mexico’s behavioral health system and had ripple effects on many families and businesses and also caused private health care costs to increase.

https://www.petedinelli.com/2019/12/10/governor-lujan-grisham-announces-more-behavioral-health-provider-settlements/

Governor Michelle Lujan Grisham’s 2020 Executive Budget Recommendation funds the multiagency Behavioral Health Initiative (BHI) for $28.7 million. The BHI has four primary goals:

1. Building a new behavioral health provider network;
2. Developing community-based mental health services for kids and families;
3. Effectively addressing substance-use disorder;
4. Effectively addressing the behavioral health needs of justice-involved individuals.

In order to address the behavioral health provider shortages and provide appropriate incentives to behavioral health providers so they can expand coverage across the state, the Executive Budget Recommendation includes funding to implement Medicaid behavioral health provider rate increases, supportive housing programs, and physician training assistance, as well as financial aid.

ECONOMIC DEVELOPMENT AND TOURISM

In November, it was announced that New Mexico has the 3rd highest GDP growth in the country. New Mexico now ranks in the top 10 for private-sector job growth nationally and has had the best year for job growth in the state since 2006. The state’s economy is finally turning around after so many years being affected by the great recession.

The 2019 budget made critical investments in projects qualifying under the Local Economic Development Act (LEDA), Jobs Training Incentive Program (JTIP) and Main Street programs that have contributed to the growth of the state’s economy. Increased funding was also provided to the tourism industry. A continuation of critical investments in economic development and successes in diversifying & expanding the economy, including $40 million for LEDA, $9 million for job training, and funds to grow outdoor recreation, film, & tourism activities is contained in the 2020 proposed budget.

The 2020 proposed Executive Budget contains funding to continue the successful investments made using the LEDA program of $40 million. $10 million will be used for rural infrastructure projects. The LEDA program has successfully encouraged businesses to come to New Mexico to stimulate economic growth in the state and leveraged $2.3 billion in private investments over the last six years. The FY20 goal is to create 2,500 jobs, and the addition of the rural fund will allow greater flexibility and opportunity for projects located in non-metro communities.

Last year, funding for tourism marketing was increased by $3 million. The 2020 Executive Budget Recommendation includes another $3 million increase, which will enable the Tourism Department to saturate our current markets being concentrated upon by the Department. The 2020 Executive Budget proposal funds an increase of $1.4 million for the Cooperative Marketing Program, which has a 1:1 matching fund component with local governments and nonprofits. $600 thousand has been earmarked to grow and enhance the brand extension program Certified New Mexico True by allowing for technical assistance and production support to state agencies and other partners. Nearly 300 products are now New Mexico True certified.

INFRASTRUCTURE, ROADS AND BRIDES

Governor Lujan Grisham is recommending $200 million in General Fund for roads, bridges and rail projects throughout the state. Last year, the Legislature and the Governor appropriated over $450 million in General Fund for state and local road projects. This year’s Executive Budget Recommendation, in addition to what was appropriated last year, will make significant headway in improving the roads in our state.

The State’s infrastructure needs continue to outweigh what is available for capital projects. Notwithstanding, according to the executive budget summary, the Lujan Grisham Administration is committed to putting tax dollars to work and ensuring projects begin faster and are completed faster without diminishing the integrity of the projects. Capital needs and deferred maintenance on public buildings across the state total $2.7 billion for FY21. This includes requests for local governments totaling $1.6 billion, state agencies totaling $752 million, higher education institutions, special and tribal schools totaling $339 million, and senior citizen facilities totaling $39 million. Funding for capital this year includes Severance Tax Bonds (STB) and General Obligation Bonds (GOB). Capacity for STBs is $362.3 million and the GOB capacity total is $198.9 million.

PUBLIC SAFETY

When it comes to public safety, the Governor’s Executive Budget provides funding to hire 60 additional State Police officers. There are more than 660 State Police officers across New Mexico. Right now, only about 60 of them are stationed in the Albuquerque area district, which covers 6 counties.

Then Executive Budget includes funding for the Department of Public Safety budget at $163.9 million, which will provide for a total of 60 new State Police officers, including equipment and training. Additional funding is included for ten new staff for forensic labs, including six new forensic scientists and a new data-sharing system that will address gaps in inter-agency communication, as well as $6.3 million for state police recruitment and retention initiatives.

It was on October 30, 2019 that Governor Michelle Lujan Grisham ordered the creation of the “Fugitive Apprehension Unit” to apprehend hundreds of criminal defendants across New Mexico who have not shown up for court hearings or wanted on bench warrants. The Fugitive Apprehension Unit consists of State Police officers and state Corrections Department staffers. The unit works with local law enforcement officials around New Mexico to track down and arrest people charged with committing violent crimes.

The increase of 60 additional State Police will give the governor the option to do more with the “Fugitive Apprehension Unit” as well as to conduct law enforcement surges as was done in Albuquerque last summer.

https://www.abqjournal.com/1407078/gov-lujan-grisham-unveils-7-7-billion-spending-plan.html

PERA SOLVENCY MEASURES

For the 2020 legislative session, Governor Michelle Lujan Grisham has endorsed a complex proposal to overhaul New Mexico’s chronically underfunded Public Employees Retirement Associatiob (PERA) proposed by Democratic legislative leaders. The proposal builds on the work of a PERA task force established by the governor with some major changes. The most controversial recommendations by her task force involved the 2% cost of living (COLA) currently guaranteed to all retirees.

According to media reports, the legislation will establish a “profit-sharing” model for the annual cost-of-living adjustments that most retirees now receive. Rather than an automatic 2% increase in their pensions each year, the actual amount would fluctuate, anywhere from 0.5% to 3%, depending on investment returns.

Under the proposed legislation, government employers and employees will pay more into the system with a schedule that phases in higher contributions. Other changes will help retirees who are older than 75, disabled or receiving pensions of less than $25,000 a year, despite 25 years of service.

In her 2020 proposed budget, the Governor is proposing a $76 million allocation for PERA but is not proposing any funding for Educational Retirement Board (ERB), the educators retirement plan.

SALARY INCREASES

Increasing teacher salaries to attract and retain teachers continues to be a major priority. For a second consecutive year of pay increases, the Governor is proposing a 4% increase for all teachers and education personnel costing $92.7 million. The Executive Budget Recommendation also includes funding for educator professional development of $17 million to support professional development and mentoring for teachers early on in their careers; educational leadership development and support; and educator recruitment, retention and evaluation.

The Governor’s budget includes a salary increase of 3% for all state employees totaling $27.6 million and 2% for all higher education employees, including much of the non-General Fund portion totaling $18 million.

https://www.governor.state.nm.us/2020-executive-budget/

See the full budget here: http://bit.ly/37FNFbt

LEGISLATORS REACT

Democratic State Senator John Arthur Smith, D-Deming, chairman of the powerfull Senate Finance Committee and fiscal conservative said the total spending amount proposed by the Governor is higher than under the legislative plan. Senator Smith also said the elevated reserve levels would give the state a cushion if oil prices fall or if an economic recession were to hit.

Republican State Senator Steven Neville, R-Aztec, said the governor’s spending plan bears some similarities to a competing plan that is still being crafted by the influential Legislative Finance Committee that will be released later this week and said:

“We’re kind of in the same ballpark when it comes to getting teachers better compensation and those kinds of things”

https://www.abqjournal.com/1407078/gov-lujan-grisham-unveils-7-7-billion-spending-plan.html

STATE REVENUE SURGE

According to news reports state revenue collections are roughly $273 million above projected levels, and will in all likely be even higher, due primarily to skyrocketing oil production in southeastern New Mexico that has led to a regional economic upswing. Royalties, taxes and other direct revenue from oil and natural gas production now make up more than 35% of all revenue collected by New Mexico.

The higher-than-expected revenue surge has the state on track to collect an unprecedented $7.97 billion in the budget year that ended June 30. Such revenues could allow for additional spending increases on public schools, roads, shoring up the PERA pension funds and other state programs in the upcoming 2020 legislative session.

https://www.lcsun-news.com/story/news/local/new-mexico/2019/08/19/new-mexico-pace-record-7-8-billion-revenue-thanks-oil-production/2053628001/

New Mexico was already expecting a $1.3 billion budget surplus for the fiscal year. However, a Legislative Finance Committee revenue tracking report suggests that the final surplus figure will likely end up being larger. Most of the revenue windfall is due to an oil boom in the Permian Basin that has been driven by improvement in drilling techniques and production methods and has made New Mexico the nation’s third-highest oil producing state.

https://www.abqjournal.com/1354833/nm-coffers-flush-with-cash-from-oil-boom.html

NEW MEXICO LEGISLATURE OFFERS OWN 2020 BUDGET PROPOSAL

On January 7, 2020, one day after Governor Michelle Lujan Grisham released her proposed executive budget, the New Mexico Legislative Finance Committee released its own 2020 proposed budget. The Committee’s proposed budget calls for about $7.5 billion in ongoing spending which is an increase of 6.5% over current levels. The Governor’s proposed budget calls for an 8.4% increase.

The difference amounts to $132 million in annual spending out of a $7.5 billion dollar budget. Both budgets will be considered and debated by both the House and Senate with the goal to reach a consensus during the 30 day session that begins on January 31.

AREAS OF AGREEMENT

According to the released legislative budget, the bipartisan Legislative Finance Committee (LFC) is supporting Governor Michelle Lujan Grisham’s plan to establish her proposed a new endowment fund to help pay for early childhood programs. Both the Governor’s proposed budget and the LFC recommendations include hundreds of millions of dollars to establish an early childhood education trust fund. Governor Lujan Grisham proposed $320 million and lawmakers are proposing $325 million. The trust fund would essentially be an “endowment fund” to be used in future years that would disperse funding for early childhood programs.

Another area of agreement is that the LFC budget revealed also calls for pay hikes for teachers and increased spending on public education very similar in scope to the Governor’s proposed budget recommendations.

Both the Governor’s proposed budget and the LFC budget suggest similar increases of $53 million to $57 million in a funding formula that provides extra money to schools and districts with a large number of “at risk” students.

https://www.abqjournal.com/1407428/lawmakers-issue-competing-budget-proposal.html

AREAS OF DISAGREEMENT

The Legislative Finance Committee (LFC) is opposing the Governor’s new college scholarship program allocating $35 million in funding for a new scholarship program aimed at making college tuition-free for state residents. The legislative budget proposal doesn’t include funding for the program but instead targets $35 million in increases for financial aid programs, with a focus on low-income students.

Lujan Grisham is seeking $26 million to expand eligibility for a childcare assistance program for lower-income families. Lawmakers are proposing a mere $1 million extra for childcare assistance subsidies because federal funding might increase.

Under her proposed budget, the Governor is proposing a 4% salary increase for teachers, and state workers would receive 3% pay raises. The LFC is proposing a 3% pay increase across the board for teachers, school personnel and state employees, with targeted increases in a few cases, such as for bilingual and special education teachers and State Police officers.

The Legislative Finance Committee is recommending $150 million to help the state’s two main pension systems, THE PERA system and Educational Retirement Board (ERB) for educators. The Governor is proposing $76 million for PERA and no funding for ERB, the educators retirement system.

LEGISLATORS REACTION

Democratic LFC Chairman State Senator John Arthur Smith, Democrat from Deming, said an oil boom in the southeast part of the state is helping provide the revenue to increase spending and maintain healthy reserves of 25%.

State Representative Patricia Lundstrom, a Gallup Democrat and vice chairwoman of the Legislative Finance Committee had this to say:

“Our difference with the executive is not that far apart,” “I feel like this is a very responsible budget.”

The Governor’s Spokeswoman Nora Meyers Sackett said the administration is optimistic about the coming budget talks and said:

“It seems unprecedented to have so much agreement at this point in the process and we’re very excited to be starting from a place where there is so much overlap.”

ANALYSIS AND COMMENTARY

In addition to her proposed Executive Budget, the Governor has made it known that she intends to add to the call bills calling for the legalization of recreational cannabis, Public Education Retirement Association (PERA) solvency measures, parole reform and red flag gun control laws allowing seizure of guns with a court order from those who pose an immediate threat to themselves and others.

One thing is for certain, the governor’s proposed budget is ambitious but the job of promoting her programs during the 2020 legislative session will be made much easier because of the oil boom that has propelled New Mexico’s government revenue to record highs. The fact that the Governor’s proposed budget and the LFC budget are so similar in scope should allow the legislature to consider other items placed on the call by the Governor.

The record surplus should allow the Governor to virtually fund all the education programs she wants, invest in capital projects and infrastructure as well as shore up the PERA pension funds, but only if the legislature allows her. Another major source of revenue for the state would be the legalization of the recreational use of marijuana, if done properly, with responsible regulation and taxation.

The 30 day New Mexico legislative session begins on January 21. Once the session begins, both budgets will be subject to legislative hearings in both the House and Senate. A final budget will emerge. The legislature has until February 20 to send the Governor the approved budget. Governor Lujan Grisham will have until March 11 to veto all or parts of the budget.