Its HEEEERE! Governor Michelle Lujan Grisham Declares Public Health Emergency; Ban On Public Events; Schools Closed For 3 Weeks; Catholic Church Services Cancelled

IT’S HEEEERE! For the last week, the corona virus has dominated the national news. All three national media news agencies have devoted up to half of their beginning news programs to the corona virus and then some and what’s happening around the world.

Each time the news casts would put up a map of the United States showing the states in red where the virus has been found, New Mexico would be in black. Now New Mexico is in red. With 5 cases of the virus now found in New Mexico, the pandemic has indeed arrived to the Land of Enchantment.

https://www.krqe.com/health/coronavirus-new-mexico/3-presumptive-positive-cases-of-covid-19-in-new-mexico/

https://www.kob.com/new-mexico-news/nm-announces-4th-positive-case-of-covid-19/5671735/?cat=500

The corona virus was formally declared a “pandemic” by the World Health Organization (WHO). According to the World Health Organization there are more than 124,000 confirmed cases of coronavirus in 104 countries and territories. More than 4,200 people have died worldwide. Of those deaths, more than 3,100 people have died in China.

More than 1,200 people across 38 states and Washington D.C. who have confirmed cases of coronavirus. The U.S. death toll is at least 33, including 24 deaths in Washington state. More than 1,100 cases are spread across at least 41 states and the District of Columbia. At least 33 people have died. 25 have died in Washington state, four have died in California, two have died in Florida, one died in New Jersey and one in South Dakota.

https://www.koat.com/article/us-coronavirus-cases-reach-1000-as-millions-more-testing-kits-make-way-to-labs-across-the-country/31397217

The NBA has suspended its season “until further notice” after a Utah Jazz player tested positive March 11 for the coronavirus, a move that came only hours after the majority of the league’s owners were leaning toward playing games without fans in arenas. Now there will be no games at all. Other major sporting event tournaments such as the rest of the NCAA finals are being held without fans.

https://www.koat.com/article/remainder-of-nmaa-basketball-tournament-to-be-played-with-no-fans/31409559

President Trump spoke to the nation announcing a 3O day travel restrictions. Trump said he is suspending all travel between the U.S. and Europe for foreign nationals for 30 days beginning Friday as he seeks to combat the coronavirus outbreak. Trump blamed the European Union for not acting quickly enough to address the coronavirus and saying United States clusters were “seeded” by European travelers. The truth is the only “cluster” is in the White House given the President’s poor handling of the crisis.

https://www.krqe.com/news/politics/in-battle-against-virus-trump-restricts-travel-from-europe/

Just when things were looking great with respect to oil and gas royalties to finance state government, BAM the corona virus hits, a global oil price war ensues, and New Mexico gets hit in the process, all within one month since the adjournment of the New Mexico legislature. The global oil price war has hit hard the recent revenue boom and has caused the state budget surplus to evaporate. New Mexico’s most recent revenue estimates pegged oil prices for the budget year that ends in June to average $52 per barrel and the price of oil has now plummeted to $33.19 dollars a barrel. The result was the Governor vetoing the $49 million capital outlay bill and line item vetos of another $100 million in projects from the $7.3 Billion dollar budget.

GOVERNOR MICHELLE LUJAN GRISHAM DECLARES PUBLIC HEALTH EMERGENCY

On March 11, Governor Michelle Lujan Grisham became the first New Mexico Governor to invoke the 2003 Public Health Emergency Response Act (PHERA), issuing an Executive Order declaring a “public health emergency” giving her administration broad powers to deal with the coronavirus . The governor urged people to avoid public gatherings, sanitize common surfaces and minimize contact with other individuals, even if it means staying home from church or going out less often in order to slow transmission of the virus. During a press conference declaring the emergency, Lujan Grisham said New Mexico has 2,400 tests available to determine who has the coronavirus. Health officials will be determining who is most in need of the test. The state has completed about 129 tests for the coronavirus so far and just 5 have turned up “presumptive positive.”

https://www.abqjournal.com/1430120/nm-has-three-confirmed-cases-of-coronavirus.html

In announcing the Public Health Emergency the Governor had this to say:

“This is a very highly infectious virus. … This is a serious situation. I will use every tool and resource to keep us safe.”

REPUBLICAN REACTION

Republican State Senator William Sharer, R-Farmington, accused the governor of going too far. He declared people should take common-sense steps to protect themselves, but said the governor’s message will damage tourism and disrupt life in New Mexico far beyond what’s necessary.

In a written statement, Republican Senator Sharer had this to say:

“The Governor has called for mass panic, then told us not to panic. . . I encourage people to take common sense measures to prevent the spread of any disease. We all should take the same precautions as we do to avoid the flu. If we put this in perspective, many more people get sick and die from the seasonal flu in our state every year than have contracted COVID19 in the entire United States.

While we are concerned about the seasonal flu, we don’t declare states of emergency and cause panic over it. The governor’s emergency declaration is already having huge negative effects, The governor has touted tourism as the way to move away from the fossil fuel industry that currently funds the state budget. As of today’s emergency declaration, she is actively destroying that industry as well. . . The panic the governor induced in New Mexico has the potential to go on and on. Wash your hands and ignore the panic.”

MAJOR EVENTS CANCELLED

Following the announcement of the 5 coronavirus cases in the state, the New Mexico Athletics Association (NMAA) made the decision to ban fans from the state basketball tournament. The NMAA will limit those in attendance to essential team personnel. The decision was made hours after the NMAA released a statement that encouraged people who were ill to stay home.

https://www.kob.com/nm-high-school-sports/no-fans-to-be-admitted-for-state-high-school-basketball-tournament/5671917/?cat=500

On Wednesday, March 11, Gov. Michelle Lujan Grisham declared a public health emergency after the state Health Department confirmed COVID-19 coronavirus cases in New Mexico. In the interest of public safety, Governor Lujan Grisham ordered the cancellation or postponement of all events in state-owned facilities including the Gathering of Nations. All events at Expo New Mexico have been canceled at least through the end of March. These include the Monster Jam, Rio Grande Arts and Crafts Festival, the World Series of Team Roping, ABQ Rubber Stamp Show, Southwest Chocolate and Coffee Festival, Central New Mexico STEM Research Challenge, MasterWorks of New Mexico, New Mexico Renaissance Celtic Festival, New Mexico Photographic Art Show, and Treasures of the Earth Gem, Mineral and Jewelry Expo. The flea markets have also been closed through the end of the month.

The Good Shepherd Center canceled the annual Brother Mathias Corned Beef and Cabbage Dinner scheduled for Saturday. People who pre-purchased tickets can get a refund by calling 243-2527 extension 303.

The Albuquerque Little Theatre is postponing all performances of “Beauty and the Beast,” scheduled for March 13, 14 and 15. Those who already have tickets can call the box office Monday through Friday, 10 a.m.-5:30 p.m. at 505-242-4750 extension 2.

The U.S. Army announced it was canceling this year’s Bataan Memorial Death March on March 15 at White Sands Missile Range. Just a day earlier, organizers announced that a record-breaking 10,000 had registered to march this year.

NEW MEXICO HEALTH SECRETARY ANNOUNCES BAN ON PUBLIC GATHERINGS

On March 12, New Mexico Health Secretary Kathy Kunkel announced a temporary ban on public mass gatherings of 100 people or more, as the state’s efforts to slow the spread of the coronavirus have rapidly intensified. Secretary Kunkel has the authority to impose the ban under the 2003 Public Health Emergency Response Act (PHERA) now that the Govener has declared a public health emergency. Mass gathering means any public or private gathering that brings together 100 or more individuals in a single room or connected space in close proximity to one another.

The ban announced by Secretary Kunkel applies to facilities such as auditorium, stadium, arena, large conference room, meeting hall, theaters, or any other confined indoor or outdoor space. The ban took effect immediately. However, airports, public transportation and shopping malls are exempt from the order. It also does not apply to weddings, funerals, restaurants, bars, hospitals and schools, retail stores, grocery stores, offices, businesses, clinics, courthouses, places of worship or shopping Malls.

https://www.abqjournal.com/1430774/nm-health-secretary-issues-ban-on-large-public-gatherings.html

NEW MEXICO EDUCATION SECRETARY ANNOUNCES PUBLIC SCHOOL CLOSURES FOR 3 WEEKS

Late March 12, Cabinet Education Secretary Ryan Stewart announce that all New Mexico public schools will be closed and classes canceled, starting Monday, March 16, for three weeks. The governor’s office said in a news release that the closure of K-12 public schools is in response to the ongoing threat of the coronavirus.

Education Secretary Ryan Stewart had this to say about the school closures:

“This is a proactive measure to limit the potential community spread of COVID-19. …We have seen other states take this measure after they have experienced community spread of this virus. New Mexico is going to be proactive and do everything we can to prevent the potential spread of the virus. I have been in communication with all of our superintendents about this proactive step, and we are all going to work together to address this public health challenge.”

https://www.kob.com/news/all-nm-public-schools-canceled-for-three-weeks/5672931/?cat=500

ARCHBISHOP ANNOUNCES CATHOLIC CHURCH AND SCHOOL CLOSURES

Archbishop John C. Wester announced on Thursday, March 12, that the Archdiocese of Santa Fe is canceling its church services and closing its schools until further notice, effective immediately, following the lead of state officials who have ordered the closure of all New Mexico K-12 public schools for three weeks. The measures were taken to prevent community spread of COVID-19. The Archbishop had this to say about his decision:

“The church is very much pro-life and we see this as very much a pro-life issue. … We are concerned about the health of our parishioners, particularly those who are elderly, and people with underlying and chronic health conditions.”

https://www.abqjournal.com/1431060/archdiocese-of-santa-fe-halting-church-services-indefinitely.html

COMMENTARY AND ANALYSIS

When Republican State Senator William Sharer says “Wash your hands and ignore the panic” the only one that needs to be ignored is Sharer, given that even Republican President Trump knows how bad things are getting and the impact it is having on a crashing stock market. Instead of just keeping his mouth shut and allowing the Governor to lead, Senator Sharer pops off deciding to ignore science and medicine and suggests to “wash your hands”.

It is clear that this is a very infectious disease that is spreading like a wild fire throughput the world, the United States and now New Mexico. The Governor is taking action to get a handle on the health crisis and its called leadership. There is no doubt that Governor Michelle Lujan Grisham knows what she is doing and declaring a “Public Health Emergency” was without a doubt the right call.

Governor Lujan Grisham has the experience, knowledge and credentials to deal with the crisis. From 2004-2007 Governor Lujan Grisham served as the Secretary of the Department of Health, the agency that now assumes power in making decisions regarding coronavirus and public safety. The Governor also served as a longtime director of the New Mexico Agency on Aging, now the Aging and Long-Term Services Department, experience that is timely because the coronavirus is most serious for individuals over 60, many of whom are in nursing facilities that the Governor as a cabinet secretary oversaw.

Government officials urged people to protect themselves by:

Washing their hands frequently with soap and water for at least 20 seconds

Cleaning “high-touch” surfaces daily with regular household cleaners

When coughing, use a tissue or cough into the forearm of your elbow

Avoiding the sharing of personal household items and, when sick, staying home rather that going to work or school

Staying home when sick

Avoid large crowds and public events

Older adults and those with chronic illnesses are most at risk to contract the virus that could result in death from complications. Even healthy people not worried about getting sick should take steps to protect themselves and others. The strategy must be to limit the chance of transmitting the disease to persons who are more vulnerable.

Abq Drops In “Best Preforming Cities” In Milken Institute Report; Wage Earners “Left Behind”; City Fails To Diversify Economy

The Milken Institute is a think tank that is based in California. Since 2002, the Milken Institute’s “Best-Performing Cities” report has tracked the economic performance of major large and small United State Metropolitan cities using 9 individual criteria to track job growth, including wage growth, high-tech gross domestic product (GDP) indicators and overall wage and salary. 200 cities are ranked on overall performance using indicators to identify components behind their success or failure.

MYTHOLOGY USED

To quote the Milken Institute report:

“The Milken Institute utilizes the geographic terms and definitions used by the Office of Management and Budget (OMB). The OMB defines a metropolitan statistical area (MSA) as a region generally consisting of a large population nucleus and adjacent territory with a high degree of economic and social integration, as measured by community ties. Once specific criteria are found, an MSA with a single nucleus and a population of 2.5 million or more is then divided into geographic areas called metropolitan divisions (MDs).

The Milken Institute measures growth in jobs, wages, salaries, and technology output over 5 years to adjust for extreme variations in business cycles. It also incorporates the latest available year’s performance in these areas. In addition, it includes a measure of 12-month job growth to capture recent momentum among metropolitan economies.

Employment growth is weighted more heavily because of its critical importance to community vitality, as is growth in wages and salaries because it signals the quality of the jobs being created and retained. Other measures reflect the concentration and diversity of technology industries within the MSAs and MDs. High-tech location quotients (LQs), which measure the industry’s concentration in a particular metro relative to the national average, are included to gauge an area’s participation in the knowledge-based economy.

Milken Institute also measure the number of specific high-tech fields whose concentrations in an MSA or MD are higher than the national average. Best-Performing Cities is solely an outcomes-based index. It does not incorporate input measures, such as business costs, cost-of-living components, and quality-of-life conditions, such as commute times or crime rates. These measures, although important, are prone to wide variations and can be highly subjective.”

2020 MILKEN INSTITUTE ABQ RANKINGS

During the week of February 24, the Milken Institute released its 2020 report on the 200 best-performing cities in the country. Albuquerque did not fair too well. The city dropped in the rankings among the 200 largest cities rated. You can review the full report here:

https://milkeninstitute.org/reports/best-performing-cities-2020

ABQ’s DECLINE IN HIGH TECH JOB GROWTH

According to the report, out of the 200 largest cities ranked, Albuquerque went down in ranking from 125 to 161 overall. Albuquerque’s decline was the 14th-largest decline of any city on the list. The report showed Albuquerque has seen very little high-tech “Gross Domestic Product” growth over the past several years. The city and state receive billions each year from the federal government and the military for research and development. The lack of growth in high tech Gross Domestic Product is very troubling given that Sandia National Laboratories is located in Albuquerque, not to mention Los Alamos National laboratory.

Michael Lin, one of the report’s authors, said Albuquerque historically has fared well in categories focusing on the concentration of tech workers in the city due in part to the presence of Sandia labs. Lin attributed the City’s decline in high tech jobs in part to a relative lack of industry diversification within the tech sector and said:

“If you look at San Francisco or San Jose, they have something more than national defense.”

ABQ’s STAGNANT WAGE GROWTH

Kevin Klowden, who oversaw the study for the Milken Institute, said Albuquerque’s ranking suffered from stagnant wages and relatively slow high-tech industry growth over the past several years and said:

“What happens is that you wind up in a situation where even if a city is adding jobs, it’s not doing it in a way that’s lending itself to a healthy enough economy.”

Albuquerque suffered from poor wage growth despite a significant decline in its unemployment rate. For the two-year period of 2017 to 2018, Albuquerque ranked 177th in wage growth, and 167th in wage growth over the past five years from 2013 to 2018. The slow wage growth may be due to Albuquerque’s high number of government jobs, which tend to have more steady wages than private-sector jobs.

Smaller cities in New Mexico did not fare very well either. Slow wage growth extended to Santa Fe, which ranked 166th and to Farmington which placed 196th on the list of 200 small cities. Klowden said he was encouraged by Farmington’s relatively strong recent job growth in 2018 and 2019 but added both Santa Fe and Farmington were hurt by stagnant wages saying:

“The state is being left behind in wage growth.”

The only New Mexico city to rise in the rankings was Las Cruces. It jumped in the studies ranking from 173 in 2019 to 102 in the 2020 report. Las Cruces posted strong tech growth in 2019 which can be credited to the growing defense and aerospace industry by new jobs at Spaceport America.

Research source materials:

https://www.abqjournal.com/1425979/nm-left-behind-in-wage-growth.html

https://milkeninstitute.org/reports/best-performing-cities-2020

TOP 10 BEST PERFORMING LARGE CITIES COMPARED TO ALBUQUERQUE

For comparison purposes, and using metropolitan statistical areas (MSA) defined as a region generally consisting of a large population nucleus and adjacent territory, following are the ten best performing cities and rankings followed by Albuquerque’s Rankings according to the Milken Report:

San Francisco-Redwood City-South San Francisco, California:
2020 Rank 1, 2018 Rank 4, Change: +3

Provo-Oram, Utah:
2020 Rank 2, 2018 Rank 1, Change: -3

Austin-Round Rock, Texas
2020 Rank 3, 2018 Rank 3, Change: Steady

Reno, Nevada:
2020 Rank 4, 2018 Rank 11, Change: +7

San Jose-Sunnyvale-Santa Clara, California
2020 Rank 5 (tied), 2018 Rank 2, Change: -3

Orlando, Kissimmee, Sanford, Florida
2020 Rank 5 (tied), 2018 Rank 7, Change: -2

Boise City, Indiana
2020 Rank 7, 2018 Rank 12, Change: +5

Seattle, Bellevue Everette, Washington
2020 Rank 8, 2018 Rank, Change: Steady

Dallas, Plano, Irving, Texas
2020 Rank 9, 2018 Rank 5, Change: -4

Palm Bay-Melbourne-Titusville, Florida
2020 Rank 10, 2018 Rank 54, Change: +47

ALBUQUERQUE’S RANKINGS

Albuquerque’s drop in rankings reflected in the report listing the 200 Best Performing Larger cities are as follows:
2020 Rank 161, 2018 125, Change: -36

Albuquerque’s 5-year job growth ranking (2013 to 2018) : 156
Albuquerque’s 1-year job growth ranking: 134

http://best-cities.org/ranktables/gridlm2019.html

MAJOR HIGHLIGHTS OF THE 2020 RANKINGS:

The Milken Report is 56 pages long and contains an Executive Summary followed by a detailed breakdown of the various cities and their rankings. The link to the entire report as a “pdf document” for download is here:

https://milkeninstitute.org/sites/default/files/reports-pdf/BPC-2020%20Report.pdf
Following is a report summary of the 4 major highlights delineated in the Executive Summary of the report:

1. “San Francisco-Redwood City-South San Francisco, CA, regains the crown as the best-performing large metro after 2014. The skilled workforce, abundant venture capital (VC), and innovation and entrepreneurial culture support regional high value-added industries, including the expanding tech and biotech industries. The metro’s excellent performance in our five-year high-tech GDP growth (ranked first) illustrates this point.”

2. “Twenty-one top-performing large metros return from our 2018 Best-Performing Large Cities Index. A substantial number of them are metros with dynamic tech sectors, including San FranciscoRedwood City-South San Francisco, CA; Provo-Orem, UT; Austin-Round Rock, TX; and San Jose Sunnyvale-Santa Clara, CA. Others, like Reno, NV, continue to develop a diverse industrial base while experiencing rapid growth in the advanced manufacturing and technology sectors.”

3. “California secured four (San Francisco-Redwood City-South San Francisco, CA; San Jose-Sunnyvale-Santa Clara, CA; Oakland-Hayward- Berkeley, CA; and Riverside-San Bernardino-Ontario, CA) of the Top 25 spots among large metros. The Bay Area in Northern California consistently shows economic excellence powered by high value-added industries. “

4. “For the fourth straight year, Bend, OR, ranks first in our Best-Performing Small Cities list. Compared with other small metros, the region has a rather diverse industrial composition with a well-developed, niche tech scene in e-commerce and vehicle technology. Bend’s entrepreneurial community has also helped grow its tech sector.”

“Overall, metros with strong tech industries remain the superstars of regional economies. One key factor in the success of these tech powerhouses is their ability to engage in new technologies. For instance, metros in the Bay Area/Silicon Valley area of California (San Francisco-Redwood City-South San Francisco, CA, and San Jose-Sunnyvale-Santa Clara, CA) lead tech innovation.”

https://milkeninstitute.org/sites/default/files/reports-pdf/BPC-2020%20Report.pdf Pages 1 and 2

GROWTH INDUSTRIES

During the last 10 years, Albuquerque has fallen to the bottom and in many cases dead last of every meaningful ranking in the country, including economy, jobs, crime, education, real estate, desirability, and traffic. According to one Brookings Institution report, the Albuquerque metro area’s economy was so bad between 2009 and 2014 that it almost fell off the charts of three measures of economic health. In a Brookings Institute Report on the largest 100 metro areas in the U.S., Albuquerque ranked 100th, 99th and 83rd in the three areas measured by Brookings: Growth, Prosperity and Inclusion.

The Bureau of Business and Economic Research (BBER) at the University of New Mexico (UNM) lists the nine (9) major Albuquerque industries or economy sectors as follows:

1. Retail and Wholesale Trade
2. Transportation, Warehousing and Utilities
3. Manufacturing
4. Education and Health Services
5. Accommodation and Food Services
6. Real Estate & Financial Activities
7. Professional and Other Services
8. Information
9. Government

ALBUQUERQUE’S EMERGING FILM INDUSTRY

Clearly the film industry in Albuquerque is emerging as a major new industry in Albuquerque with the NBC Universal deal and the NETFLIX purchase of ALB STUDIOS.

THE NBC UNIVERSAL DEAL

On June 14, NBC Universal announce it will open a studio in Albuquerque as part of a 10-year venture with Garcia Realty and Development. The media giant will be taking over, renovating and creating sound stages at a now vacant industrial building south of I-40 on Commercial Street, north of downtown in the vicinity of historic Martineztown.

The NBC Universal plans are to redevelop the warehouse into a state-of-the-art television and film studio with two sound stages, offices and a film production mill. The turnaround time for the renovations is very short and it’s expected to be complete in the fall of 2019.

The media giant is expected to provide more than 330 full-time jobs year-round at the film studio. NBC Universal employees will earn about $58,000 a year. The studio operation is projected to generate an economic impact of $1.1 billion over a 10-year period.

Once complete, the studio will be used by NBC Universal to produce scripted productions for many platforms, including broadcast and cable channels.

The state’s Economic Development Department is providing $7.7 million through the Local Economic Development Act (LEDA) to the redevelopment and production commitment. The City of Albuquerque will provide another $3 million from its LEDA fund which was approved by the Albuquerque City Council on June 17, 2019 by a unanimous vote.

https://www.kob.com/albuquerque-news/nbcuniversal-to-open-studio-in-albuquerque/5389689/?cat=500

THE NETFLIX PURCHASE OF ALB STUDIOS

On October 8, 2018, it was announced that Netflix was buying Albuquerque Studios.

Source materials:

https://www.abqjournal.com/1230755/netflix-to-buy-abq-studios.html

https://www.krqe.com/news/new-mexico/netflix-buys-albuquerque-studios/1507392854

The State contributed $10 million of Local Economic Development Act funds. The City of Albuquerque contributed another $4.5 million of Local Economic Development Funds. Albuquerque beat out other places such as Denver, Salt Lake City, Austin, New York, Georgia and Los Angeles. The Albuquerque site will be Netflix’s first hub purchased in the United States.

It is estimated that at least 1,000 well-paying jobs per year will be created. The jobs will run the gamut of film and TV production work, most of which is project-based contract labor. Many of the jobs are expected to pay $70,000 a year. The purchase deal also calls for $1 billion worth of production spent over 10 years which will have a dramatic effect on the City and State economies.

https://www.koat.com/article/film-is-rolling-in-new-mexico/31266451

ECONOMIC BASE JOBS VERSUS SERVICE INDUSTRY JOBS

A service-based industry is one that offers its products, goods or services primarily within a particular region and does not supply markets outside the region nor increase the economic base of a region. In general, service base industries offer lower paying or minimum wage jobs not requiring much education or technical skills.

An economic base job is one created or needed by a business or industry that increases economic growth of a region by increasing exports of manufactured products, goods or services from the local economy or region to another region or economy thereby increasing the size of the local economy with profits and cash flow from outside the region.

The corner stone of the “economic base theory” is that an increase in economic growth of a region or economy is dependent on increase in exports, manufactured goods or services from one region or economy to another region or economy and supplying markets outside the local economy.

AN EQUITY PROFILE OF ALBUQUERQUE

On June 19, 2018, a report entitled “An Equity Profile of Albuquerque” was released. You can read the entire report here:

http://nationalequityatlas.org/sites/default/files/ABQ_Profile_Final.pdf

The report is a racial profile of the city and the impact race has on the city economy.

The Equity Profile Report examined the indicators of economic and social inclusion and found that “equitable growth” leads to a stronger local economy.

In the report, and “equitable city” is defined as “when all residents – regardless of their race/ethnicity, nativity, gender, income, neighborhood of residence, or other characteristics – are fully able to participate in the city’s economic vitality, contribute to the region’s readiness for the future, and connect to the region’s assets and resources.”
(See “An Equity Profile of Albuquerque”, page 11).

COMMENTARY AND ANALYSIS

Since the 1950’s, Albuquerque has relied upon the federal government for billions in funding. As goes federal spending, so goes our economy. Over the last few decades, especially the last, the mantra from politicians, community leaders and the business community has been Albuquerque and New Mexico need to diversify the economy and wean itself off of federal funding. Further, Albuquerque’s economy is the economic engine of the State. Albuquerque’s ranking of 161 out of 200 in the 2020 Milken Institute report is clear evidence that the City is continuing to fail at diversifying its economy.

FILM INDUSTRY

Albuquerque has made some progress with economic development in diversifying its economy with the film industry with the NBC Universal deal and the NETFLIX purchase of ALB STUDIOS as evidence of this fact. Critics of the film industry proclaim that the film industry is very fickle, not to be relied upon and that New Mexico and the City will never fully recover all the subsidies and tax credits paid and given to it.

Notwithstanding the criticism leveled against the film industry, last year alone, the film and TV production industry brought in over $180 million of direct spending to the city and state. With the Nextflex purchase, the State now has a major production and distribution company hub that will produce projects on a consistent time line for at least 10 years and probably more. Far more important, $70,000 a year jobs will be crated and have to be filled.

The emerging Albuquerque film industry is the first time in a very long time that a new industry is emerging that is producing a large number of economic based jobs. Once Netflex is fully up and running, it is expected to produce at a minimum 1,000 jobs with many of those jobs paying $70,000 a year. NBC Universal employees are expected earn about $58,000 a year. The jobs Netflex and NBC will be providing are a far cry from the hourly wage jobs provided by the minimum wage “call centers” that the state and city have become accustomed to being announced.

The City and the State need to continue with efforts that will ensure that our education institutions such as the New Mexico Community College continue to offer a trained work force for the film industry. Both the City and the State need to create more incentives to build and guarantee that the film industry continues to grow and prosper in New Mexico.

GROWTH INDUSTRIES KEY TO DIVERSIFYING ECONOMY

Albuquerque and New Mexico need to pursue with a vengeance the real growth industry like healthcare, transportation and manufacturing, the film industry and the recreational industry to diversify our economy. Public-private partnerships in the growth industries where ever possible should be encouraged and developed. Special emphasis and support should be given to the film industry which is developing, expanding and proving to be very successful in providing well-paying jobs. A good start would be funding a $20 million initial startup fund for new local businesses with claw back provisions with the program administered by the Economic Development Department.

When it comes to economic development and diversifying the city’s economy, far more must be done. Albuquerque can and must expand and find better ways to use financial incentives for economic development such as tax increment districts (TIDS), industrial revenue bonds, and even fund economic development investment programs such as initial startup funding with claw back provisions. Public-private partnerships in the growth industries where ever possible should be encouraged and developed. Emphasis must be placed on attracting “economic based” job industries and not the service industry-based jobs the city is accustomed to attracting .

The June 19, 2018 “Equity Profile of Albuquerque” released needs to be relied upon heavily by the city formulate an economic development program to diversify the Albuquerque economy. The report found persistent inequities by race and gender that are holding the city back from having a stronger local economy. The report identifies 22 industries that are expected to grow over the 10-year period from 2014 to 2024. The report also identified 22 specific occupations that are expected to grow over the 10-year period from 2014 to 2024.

CONCLUSION

Our elected officials and the business community, including the Greater Albuquerque Chamber of Commerce, Albuquerque Economic Development (AED), the Economic Forum, NAIOP and the banking, finance and development industries, need to think long and hard about finally doing something to attract new industry instead of just being satisfied with protecting their own financial interests and bottom lines and membership drives.

Our political, business and civic leaders need to show far more backbone and commitment to improving and diversifying Albuquerque’s economy. Otherwise, we are destined to become a dying, dusty southwest city without any real potential for growth and better economic times.

Until then, “lights, camera, action.”

Governor Lujan Grisham Signs Into Law 2020 Crime Bill Package; Enacted Increased Penalties Will Have No Impact On Reducing Violent Crime; Consecutive Sentencing For Repeat Violent Offenders Would Accomplish It

On Friday, March 6, Governor Michelle Lujan Grisham signed into law bill a supporter proclaimed will reduce crime and take repeat offenders off the streets and keep them behind bars. The legislation allows in part judges to impose stiffer penalties for 2 gun-related crimes. It also expands funding for community policing. The signed legislation provides for funding and requires training in de-escalation techniques for law enforcement officers who work in the public schools.

The legislation represents the consolidation of 3 bills sponsored by Republican State Representative Bill Rehm who introduced them for the 2020 thirty-day legislative session. The Governor placed the bills on the agenda making them major priorities for the 2020 session. The bills were consolidated into one bill by a legislative committee. The law goes into effect on July 1.

When the original 3 bills were introduced, State Representative Bill Rehm, R-Albuquerque, the sponsor of all three bills, said he “hopes” the laws will curb the high violent rates crime rates in Albuquerque. Rehm also said he believes the bills would make criminals “think twice” about getting a gun or using one during a crime.

According to Rehm at the time of introduction:

“We have violence all across the state, but in particular in Albuquerque right now. …What we’re trying to do in a bipartisan way… is push these bills to get them on through to try to address some of the violence we see. We know that being a criminal, you make bad decisions. … If you’re in possession of a firearm and you’re already making a bad decision … this is going to go ahead and say, ‘Don’t have a firearm with you.’ “

In a written statement released, the Governor had this to say about the legislation she signed into law:

“We are working both to prevent crime and to hold criminals more accountable. That is the type of smart, coordinated effort that New Mexicans demand and deserve.”

The primary sponsor of the legislation Republican State Representative Bill Rehm had this to say about it:

“We must make criminals understand we will make our communities safe. … Too many of our communities are seeing repeat offenders in their neighborhoods carrying a firearm. … We’re targeting the most violent and threatening members of our community who use a gun [with this legislation]”.

Co-sponsors of the legislation Democratic Reps. Dayan Hochman-Vigil and Marian Matthews, both of Albuquerque, had this to say:

“This legislation recognizes that crime doesn’t have just one cause or one solution by enhancing penalties for gun violence and by investing in deterrence through community policing. ”

WHAT THE LEGISLATION DOES

The house legislative crime package is the result of negotiations by Democratic and Republican lawmakers aiming to improve public safety in New Mexico, especially in Albuquerque. Albuquerque has the highest violent crime rate and homicide rate in the state. Last year, the city recorded 82 homicides, a record high.

The original 3 bills, along with a 4th, were combined in a House committee and offered as an “ anti-crime” packaged. Members of the House Judiciary Committee drafted the anti-crime legislation and consolidated four separate ideas into one bill. The legislation would increase criminal penalties, encourage community policing and make it easier for law enforcement officers to secure treatment for post-traumatic stress disorder.

The legislation increases penalties in two gun-related offenses:

1. Brandishing a firearm in the commission of a crime. For brandishing a firearm, sentencing enhancement goes from one year to three years. Sentencing Judges are given the discretion to suspend the enhancement time based on facts and circumstances and a defendant’s likelihood of rehabilitation.

2. Being a felon in possession of a gun. The basic sentence of one year and six months is doubled to three years.

The legislation broadens how New Mexico can use its law enforcement protection fund. Cities and counties will be allowed to apply for money from the fund to train officers in “community-oriented policing” techniques aimed at preventing crime.

https://www.abqjournal.com/1428504/package-of-anti-crime-legislation-signed-into-law.html

INCREASING CRIMINAL PENALTIES DRAWS MIXED REACTION

Not at all surprising, Paul Haidle, an attorney and senior policy strategist for the American Civil Liberties Union of New Mexico said the passage of tougher penalties may make a statement but it won’t actually improve public safety. Kim Chavez Cook of the Law Offices of the Public Defender had this to say:

“Increasing penalties doesn’t deter crime”.

https://www.abqjournal.com/1418566/lawmakers-prepare-public-safety-package.html

CONCURRENT SENTENCING AND CONSECUTIVE SENTENCING

Under the New Mexico criminal code, concurrent sentencing and consecutive sentencing is available to sentencing judges when multiple crimes are committed by the same defendant. The postscript to this article lists the sentencing time for the various categories of crimes.

A “concurrent sentence” is a prison sentence imposed for multiple crimes that is equal to the length of the longest sentence. Concurrent sentencing can only occur when a defendant has been sentenced for two or more crimes. The purpose of a concurrent sentence is to allow a defendant to serve all sentences at the same time. A concurrent sentence is more favorable to a defendant convicted of multiple crimes for the reason that the total length of the sentence will be shorter than it would be if the sentences ran consecutively.

An example under New Mexico sentencing law of a concurrent sentence would be where the defendant commits a second degree felony of drug trafficking for manufacturing, selling or possession with intent to sell illegal drugs that carry’s up to a 9 year prison sentence and during a drug sale the defendant also commits third degree voluntary manslaughter that carry’s a 6 year sentence. Under New Mexico law, the defendant could be sentenced to 9 years in prison for the second-degree felony for the drug trafficking and the 6 years in prison for the involuntary manslaughter charge with the defendant to serve the sentences concurrently for a total of 9 years in prison.

The opposite of a concurrent sentence is a “consecutive sentence”. A consecutive sentence requires a defendant to serve two or more sentences back to back with the prison time stacked. In the above example, the defendant’s total sentence, if served consecutively, would be 15 years, 9 years for the drug charge and 6 years for the voluntary manslaughter charge.

https://study.com/academy/lesson/concurrent-sentence-in-law-definition-lesson.html

COMMENTARY AND ANALYSIS

Virtually every argument being made in support of the legislation increasing criminal penalties have been heard before over the years. Increased sentencing has proven ineffective in reducing violent crime nor do they deter crime. Criminals hell bent on committing any crime with a gun do not sit down with the criminal statutes to figure out what the penalties are for using a gun or the risk they are running at sentencing, if they are caught and convicted. Someone who is angry enough to shoot someone or who suffers from acute mental illness and wants to kill are not going to “think twice” about committing a crime as Representative Rehm has suggested.

Violent criminal intent cannot be rationalized in any meaning way. The most violent criminals when they kill do not think about how long their sentence may be in prison if caught, convicted and sentenced. It not likely they will even know what the sentences are for the various degrees of crime. The postscript to this blog article outlines the sentences for crimes committed.

Increased sentencing penalties and mandatory enhancement penalties will result in overcharging and a failure to screen cases properly by the District Attorney. Overcharging a case by the Bernalillo County District Attorney’s office is a very common practice. Many mandatory enhancement charges will wind up becoming simply “bargaining chips” to secure a voluntary plea agreement to a lesser included offense and sentencing agreement usually at significantly reduced penalties.

MANDATE CONSECUTIVE SENTENCING AND ELIMINATE EARNED GOOD TIME DEDUCTIONS IN VIOLENT CRIME CASES

If the ultimate goal is to keep the most violent criminals behind bars for longer periods of time, the answer is not to increase penalties for the individual violent crimes. A more realistic approach would be to mandate “consecutive sentencing” of defendants convicted of multiple violent crimes to increase time in prison while still allowing the sentencing judge the discretion to suspend time to tailor the sentence to the individual defendant as the need be taking into account the likelihood of successful rehabilitation. The criminal sentences that can be imposed for felony crimes can be found in the postscript to this blog article.

Another example would be a violent defendant commits two 2nd degree felonies with 9 years exposure for each for a total of 18 years and commits two 3rd degree felonies with 6 years exposure for each for 12 years resulting in a total consecutive sentence of 30 years. A pre sentence report recommends less time of 20 years and the judge feels compassion is in order and sentences to 20 years, suspending 10 years of the consecutive sentence. Twenty years is far more than if the judge ran all the sentences concurrent which would result in a 9 year sentence.

Another option is to eliminate earned meritorious deductions or good time credits on all sentences for all violent crime. In other words, if a convicted felon is sentence to 3 years, the convicted felon must serve the full 3 years and the sentence is not reduce. The “Earned Meritorious Deductions” policy is outlined in the postscript to this blog article.

ENACTED LEGISLATION SIGNED INTO LAW

A very good thing about consolidated legislation signed into law by the Governor is that it drops the mandatory sentencing by a judge taking away a sentencing judge’s discretion to suspend the prison time. Under the signed legislation, sentencing judges would have the option of suspending the extra time and allow probation, which is how our criminal justice system should work.

Judges need to be empowered with deciding if a person can be rehabilitated in any meaningful manner and returned to society. Mandatory enhancement provisions do not allow a judge to impose any type of probation or suspension. A defendant’s criminal record, the extent of injury caused, the impact of the crime on the victim or the community, and the extent to which the defendant has addressed life circumstances, such as drug addiction, which may have contributed to the criminal behavior, become totally irrelevant with mandatory sentencing. Mandatory sentencing by judges is not how the criminal justice system is supposed to work.

IF YOU WANT THEM TO DO MORE TIME, YOU MUST BE WILLING TO PAY FOR IT

A point too often forgotten by the tough on crime advocates is that once you imprison someone for a crime, they become wards of the state. A prisoner’s health, safety, welfare, food and lodging and medical care must be paid for by the taxpayer. It is far too easy for elected officials to say imprison someone for longer periods of time, but there must be a willingness on their part to also pay and build jails and house and feed those you want behind bars.

The philosophy of “lock em up and throw away the key” does not solve the underlying causes of crime which are poverty, drug addiction, lack of education, mental health problems and failed social intervention. It is a damn shame when people are far more willing to pay and build jails than schools rather than address the root causes of crime.

The same goes for funding our judicial system that protects and preserves our civil rights and freedoms guaranteed under our constitution that include freedom of speech, right to bear arms, freedom of religion, due process of law, the presumption of innocence, and the right to a jury trial.

CONCLUSION

The crime package legislation signed by the Governor is a reasonable compromise, but do not expect a dramatic effect on reducing violent crime. Although it made good press passing the legislation and signing the bill into law, the new increased penalties will have little or no impact on reducing crime.

_________________________

POSTSCRIPT

CRIMINAL SENTENCING PENALTIES

Under the New Mexico criminal code, felony crimes are categorized into five classes: capital felonies, first, second, third, and fourth-degree felonies. A capital felony is the most serious crime in New Mexico, a first-degree felony is the second most serious felony crime, and second, third and fourth-degree felonies are the least serious felonies.

Capital felonies in New Mexico are premeditated murder, felony murder which is murder committed during the commission or attempted commission of a felony, aggravated criminal sexual penetration, and depraved mind murder. Capital felonies carry the penalty of life in prison.

First degree felonies in New Mexico include murder, criminal sexual penetration of a minor and other serious sexual crimes, kidnapping, and robbery while armed with a deadly weapon. First degree felonies carry a prison sentence up to 18 years in prison and up to $15,000 in fines.

Second degree felonies include robbery, shooting at or from a motor vehicle, sexual exploitation of a minor, the manufacture of child pornography, and drug trafficking including manufacturing, selling or possession with intent to sell illegl substances. Second degree felonies carry a prison sentence up to 9 years in prison and up to $10,000 in fines.

Third degree felonies can include voluntary manslaughter, aggravated battery, some sex crimes, and aggravated stalking. Third degree felonies carry a prison sentence up from 3 to 6 years in prison and up to $5,000 in fine. A third-degree felony resulting in death or a felony sexual offense against a child victim both carry six years in prison and a fine up to $5,000.

Third degree felonies can include voluntary manslaughter, aggravated battery, some sex crimes, and aggravated stalking. Third degree felonies carry a prison sentence up to three years in prison and up to $5,000 in fines.

Fourth degree felonies include involuntary manslaughter, aggravated assault, burglary, graffiti and property damage over $1,000, and shoplifting items with a value between $500 and $2,500. Fourth degree felonies carry a prison sentence of up to 18 months in prison and up to $5,000 in fines.

https://www.criminaldefenselawyer.com/resources/criminal-defense/felony-offense/new-mexico-felony-class.htm

EARNED MERITORIOUS DEDUCTIONS (GOOD TIME)

Under New Mexico statutory law, N.M. Stat. ann.§ 33-2-34 (2015), convicted felons are subject to the “Earned Meritorious Deductions” statutory policy that reduces felony sentences on prison time to be served.

Under this policy, offenders convicted of the following “serious violent crimes” as defined by New Mexico statute will receive up to 4 days of credit for 30 days served (4/30):

• second degree murder (first degree murder is not subject to any meritorious deductions)
• voluntary manslaughter
• third degree aggravated battery
• first degree kidnapping • first and second degree criminal sexual penetration
• second and third degree criminal sexual contact of a minor
• first and second-degree robbery
• second degree aggravated arson
• shooting at a dwelling or occupied building
• shooting at or from a motor vehicle
• aggravated battery upon a peace officer
• aggravated assault upon a peace officer
• assault with intent to commit a violent felony upon a peace officer .

The following list of violent offenses are also considered to be “serious violent offenses” when the nature of the offense and the resulting harm are such that the court judges the crime to be so, and are also subject to 4 days of credit for 30 days served (4/30):

• involuntary manslaughter
• fourth degree aggravated assault
• third degree assault with intent to commit a violent felony
• third and fourth degree aggravated stalking
• second degree kidnapping
• second degree abandonment of a child
• first, second, and third degree abuse of a child
• third degree dangerous use of explosives
• third and fourth degree criminal sexual penetration
• fourth degree criminal sexual contact of a minor
• third degree robbery
• third degree homicide by vehicle or great bodily injury by vehicle
• battery upon a peace officer

Governor Lujan Grisham Signs “PERA Pension” Reform Measure To Fix “Fabricated Crisis” Created By Her Appointed Pension Reform Task Force

(EDITORS NOTE: In the interest of full disclosure to readers, the author of this article retired in 2009 from government service with more than 27 years of vested service in the PERA pension program.)

(EDITORS NOTE: This March 9 blog article was edited to include the March 14 Albuquerque Journal Editorial followed by the link.)

As was expected, on March 2 Governor Michelle Lujan Grisham signed into law sweeping changes to New Mexico’s retirement system for police officers, firefighters and public employees known as the Public Employees Retirement Association (PERA). The legislation was labeled as PERA Pension Reform and was placed on the 2020 thirty-day legislative session by the Governor making it one of her major priorities for the 2020 session. The passage of the legislation was not even close with the Senate voting 25-15 and the House voting 40-28.

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 damaged New Mexico’s bond rating.

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 retirement system. The number of people affected by the changes is multiplied at least two and three times when you add in family dependents.

The 2020 pension reform legislation is just another attempt in the last 8 years to address solvency. In 2013, the New Mexico legislature reduced retirement benefits for future workers, active employees and covered retirees. It also enacted stricter retirement eligibility guidelines for future hires. The 2013 solvency fix also increased employee contributions and taxpayer-funded contributions. At the time of the changes in 2013, the legislature proclaimed, much like what the Governor and the legislature are doing now, that they had adverted a crisis and saved PERA.

What has changed since 2013 is that 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”. Currently, the PERA pension program has 70% of funded liability in current funding assets to future liability.

WHAT THE LEGISLATION DOES

Under the legislation enacted and signed into law, there will be a temporarily freeze of cost-of-living adjustments for some retirees and require public workers and government agencies to pay more into the system. The changes are intended to better position the Public Employees Retirement Association to withstand an economic downturn. The plan is now about 70% funded, with over $6 billion in unfunded liabilities.

In a statement released to the media, the Governor had this to say:

“By paying out more than it was taking in. … PERA was on a path to eventual bankruptcy. Now we’ve reversed course, and I’m confident New Mexico can keep its promises to current and future retirees.”

FIERCE OPPOSITION BY RETIREES

PERA Retirees turned out in force to object to the proposed changes to the retirement system especially dealing with their annual cost-of-living adjustments. Legislative committee hearings were packed with angry retirees who made it clear how much they rely on the “cost of living” adjustments to keep up with inflation and ever-increasing premiums for health care.

Legislative supporters of the changes said that while painful, the sweeping changes were necessary to maintain the solvency of the retirement funds and to achieve 100% funding over the next 25 years.

The pension reform legislation was a bi partisan effort sponsored by Democrat Senator George Muñoz, D-Gallup and Republican Representative Phelps Anderson, R-Roswell.

Democrat Senator George Muñoz, D-Gallup, had this to say:

“We’re watching after everyone’s future and safeguarding the state’s bond rating.”

Republican Representative Phelps Anderson

“The path to PERA solvency would never have been accomplished without this bipartisan effort.”

TASK FORCE RECOMMENDATIONS ADOPTED

The Pension Reform legislation is largely based on recommendations from a task force the Governor appointed last year to come up with pension reform recommendations. The Governor’s PERA Pension reform task force was essentially packed with public safety union representatives none who had any financial background in government pension planning.

Public Safety Unions are a small fraction of the states work force and retirees. PERA’s Board Chair, Jacquelin Kohlasch, along with Executive Director Wayne Propst and Chief Investment Officer Dominic Garcia were appointed Task Force members. The chairman of the task force was the Governor’s Deputy Chief of Staff, a retired fire fighter and former fire union president who lobbied for enactment of the bill. Public Safety Unions are a small fraction of the states work force. No women were appointed to the task force.

The task force final recommendations were heavily influenced by the PERA Executive Director Wayne Propst and Chief Investment Officer Dominic Garcia. Propst and Garcia at the time were in conflict with many of the duly elected PERA Board of Directors over pension investment strategy. Propst and Garcia were accused of pension fund mismanagement by Board members. Propst was also accused of impropriety by board members for giving himself and his staff huge raises without conferring with the PERA Board. Things got so bad that the New Mexico Attorney General initiated an investigation resulting in a finding of no misconduct. Notwithstanding the controversies, on November 1, 2019, by an 8-4 vote, the PERA board voted not to terminate Executive Director Wayne Propst.

The most controversial aspect of the reform bill involves the 2% cost of living (COLA) currently guaranteed to all retirees. The legislation freezes many retirees’ cost-of-living adjustments for two years that will save money. After the two year freeze, the legislation establishes 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.

Most state, county and municipal employees that contribute to PERA and the governments they work for will have to pay more into the PERA system, which will reduce take home pay for workers and require more government spending. The contribution increases will be phased in over several years. Government employees and employers each will be required to pay and additional 2% of a person’s salary.

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.

Under the reform measures, some of the mandated contribution increases will be eliminated as the health of the pension fund improves. There are “public safety” employee exemptions where police and corrections officers and low-paid workers will not be subject to the increases in contributions.

Below is a link for news coverage:

https://www.abqjournal.com/1426696/lujan-grisham-signs-pension-changes-into-law.html

COMMENTARY AND ANALYSIS

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 legislation the Governor signed has alienated some of her strongest supporters that could signal trouble for her in 3 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 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, the crisis is fabricated. The PERA Pension plans are solvent for at least 23 years, if not more. 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 advisers who have now fabricated a crisis saying there is a need for a 100% funded program, no doubt motivated by getting their hands on more money to invest and getting increased investment fees and commissions.

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.

The fact that the Municipal Fire Pension program is 13.87% underfunded must be noted. The Chairman of the Governor’s Pension Reform Task Force is one of the Governor’s chief of staff, a retired fire fighter and former Albuquerque Firefighter Union President. Municipal Fire Fighter Pensions are far more lucrative than state worker pensions as to benefits with only 20 years needed to retire with a full pension of a high three year pay, and much less is required to be paid into the pension system.

The Governor’s PERA Pension reform task force was essentially packed with public safety union representation. Firefighters from across the state, especially from Albuquerque, appeared in full firefighters uniform and packed the legislative committee hearings in support of the pension reforms. Public Safety employees are a small fraction of the PERA contributors.

The argument made essentially was that the legislature needed to “spread the pain” around to all pension programs, and not touch any of the “public safety” pension programs and not demand more time to retire or increase employee contributions. The task force declined to promote an infusion of funding from the legislature for only those programs that are underfunded and that have not met investment return goals.

The New Mexico Legislature and the Governor rushed into pension reform in a 30 session when it should have been taken up in a 60-day session. PERA manages a $15 billion pension fund and income from fund investments that helps pay pensions owed. There was more than enough time to address the PERA pension system and the sky is not falling. 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.

It is not necessary for the pension funds to achieve 100% funding and 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.

Rather than reducing Cost of Living Adjustments, the legislature could have made 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 are 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, and the current PERA management investment team is not getting the job done, but thanks to Wayne Propst, he and his management team are enjoying huge pay raises.

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. Former Governors Bill Richardson and former Republican Governor “She Who Must Not Be Named” avoided pension reform knowing the dangers and pitfalls. Governor Michelle Lujan Grisham on the other hand has wondered into territory that will probably have an impact on her re election bid or at least her overall popularity with some of her core supporters.

PERA retirees can expect the New Mexico legislature will once again have to make further modifications in future years to the PERA pension programs because what was approved by the legislature will not get the funds to 100% solvency. Too bad, it did not have to be this way had the Governor and the legislature shown a little more patience to address real pension reform and not rush it in a 30-day session.
___________________________________

POSTSCRIPT

Below is the March 14 Albuquerque Journal Editorial followed by the link:

Editorial: Much-lauded state pension ‘fix’ is really just a Band-Aid
BY ALBUQUERQUE JOURNAL EDITORIAL BOARD
Saturday, March 14th, 2020 at 12:05am

There was plenty of self congratulation when the Legislature passed and the governor signed New Mexico’s latest “fix” for the state’s chronically underfunded public employee pension system. It pumps in a one-time cash infusion of 55 million in tax dollars, freezes and limits cost-of-living adjustments for two years, moves to a profit-sharing model for COLAs – based on investment success – and bumps up contributions by both employees and government employers – aka taxpayers.

“By paying out more than it was taking in,” the governor said, “PERA was on a path to eventual bankruptcy. Now we’ve reversed course, and I’m confident New Mexico can keep its promises to current and future retirees.” Sen. George Munoz, D-Gallup and a pension-fix co-sponsor, said “we’re watching after everyone’s future.” Rep. Phelps Anderson, R- Roswell and a co-sponsor, told colleagues “New Mexico has overpromised, (and) we’ve got to step up and deal with that. …”

They were half right. We have overpromised. But this isn’t the long-term fix needed. If it feels like you’ve seen this movie before, you have. You’re likely going to see it again – especially if markets continue to reel under the impact of oil prices and coronavirus. Fund solvency is tied to investment success.

Lawmakers “fixed” PERA in 2013, using many of the same tools – increasing contribution rates and trimming benefits.

PERA Executive Director Wayne Propst said in November 2013 he was optimistic but it was too early to “pop the champagne corks.” No kidding. PERA’s unfunded liability has climbed from $4.6 billion to more than $6 billion since then. (And in 2019 the Legislature approved a $5.5 million infusion – described as a small step for pension reform.)

This year’s legislation grew out of a governor’s task force and drew heated opposition from retirees, who understandably feel promises should be kept. Approval wasn’t easy.
But declaring victory and achieving it are different things.

When this legislation is fully implemented in 2023, government will contribute 19.24% of each salary under the main plan for PERA-covered workers, who will contribute 10.92%.

The “fix” didn’t implement the vital structural change needed for long-term solvency – changing when workers can start drawing benefits. At a time when life expectancy has increased, as a general rule state workers can retire after 25 years and draw benefits of up to 90% of their best three years’ salary for life.

It’s worth noting in 2013 the state had about 55,000 employees and nearly 34,000 retirees. This year? Workers are about 50,000, retirees 40,000. With the baby boom aging out of the workforce, the basic trend will continue – and a hiring spree to shore up the fund will make things worse.

Sen. Daniel Ivey-Soto, D-Albuquerque, said during a pre-legislative seminar it isn’t possible to have a fiscally sound system in which you can work for 25 years, then draw benefits for 45. “That’s not a pension system. That’s a Ponzi scheme.” Ultimately, current workers must be protected but a path to fiscal sanity needs to look more like Social Security, where you don’t draw full benefits until close to retirement age.

The structural problem here is pretty obvious, as is the lack of appetite for real reform – especially in an election year. Meanwhile, it’s fair to suggest that at nearly 20%, we’ve reached the limit for bumping up public contributions. Let’s face it. A huge part of the state’s population has no retirement plan outside Social Security.

Ivey-Soto is right. This hard discussion can only be put off for so long. The taxpayers of this state, and the public employees, deserve a real “fix.”

This editorial first appeared in the Albuquerque Journal. It was written by members of the editorial board and is unsigned as it represents the opinion of the newspaper rather than the writers.

https://www.abqjournal.com/1431680/muchlauded-state-pension-fix-is-really-just-a-bandaid.html

Some Big Shoes To Fill; 16 People Apply To Replace City Councilor Ken Sanchez

On January 1, 2020 it was announced by his family that long time Albuquerque City Councilor Ken Sanchez had passed away. He was 63. He suffered a major medical episode in November of last year and was hospitalized. Under the City Charter, Mayor Tim Keller will appoint a replacement to serve out the remaining two years of his term and that person will have to stand for re election in 2021 if they want to continue to serve. The West-side City Council District encompasses most of the area west of the Rio Grande between Central and Montaño.

SOME BIG SHOES TO FILL

City Councilor Ken Sanchez represented District 1 with great distinction and he was extremely well like by his constituents. Many of his West side constituents referred to Ken Sanchez as the West side’s Mayor or “the champion for the West side.” He was a hard-working public servant without question and always worked for what was in the best interest of his constituents. The one word that is always used when talking about Ken Sanchez is “gentleman”. He had the common touch and always went out of his way to be gracious and courteous to all those he came in contact with him.

Councilor Ken Sanchez was first elected to the city council in 2005 and elected to 4 terms as a city councilor, serving for 14 years District 1, the central west side district of Albuquerque. During his time on the City Council, he served as City Council President in 2010, 2014, and 2018 and served as Committee of the Whole Chairman in 2006, 2008, 2009, and 2011 and working towards balanced and responsible budgets. Councilor Sanchez was also appointed Chair of the Finance and Government Committee in 2012. In 2012 Councilor Sanchez was unanimously elected Chair of the Albuquerque/Bernalillo Water Utility Authority. Councilor Sanchez also served the community for two terms on the Bernalillo County Commissioner from 1995-2002.

Throughout his years on the city council, Councilor Ken Sanchez was committed to improving the lives of Albuquerque’s Westside residents and the city as a whole. He worked with the residents of the city, the Albuquerque Police Department and the Albuquerque Fire and Rescue Department to address the needs of Public Safety in general. Among his many efforts, he worked with the community, the City Council, all Mayors and other elected officials, and local businesses to bring much needed economic retail development to the Westside. He worked to bring more jobs and places for people to shop near their homes on the West side.

SIXTEEN APPLICANTS WITH DIVERSE BACKGROUNDS

The Keller Administration released the names of the applicants, along with their for Ken Sanchez’s Albuquerque City Council seat, but did so only after the Albuquerque Journal filed an Inspection of Public Records request to get the applicants names and their supporting documentation. See full story on applicants at below link. Mayor Tim Keller appointed committee to “vet” the applicants. Keller for his part has been interviewing applicants and no doubt is being lobbied by many.
The names of the 16 applicants are:

1. Barbara Baca, the former City Parks and Recreation Director, now retired, and . elected member of the Middle Rio Grande Conservancy District board. Baca is also the daughter of long time former Albuquerque City Councilor Pat Baca who was Ken Sanchez’s predecessor on the City Council.

2. Michael Gallegos, former Las Vegas, N.M., City Councilor who served for 12 years.

3. Daniel Green, a grocery store supervisor.

4. Kristopher Finfrock-Martinez who lives in Tijeras but disclosed he has lived in District 1 before and plans to move back. The city charter mandates that City Councilor must be residents of their Districts so he in all likely is disqualified. Mr. Finfrock-Martinez has said he is a “proud supporter” of Republican President Donald Trump.

5. Michael Gary Garcia, a pharmacist who has said he graduated with Sanchez from West Mesa High School.

6. Attorney Damian Lara, a 2018 Democratic primary candidate for the city’s U.S. House of Representatives seat vacated by Governor Michelle Lujan Grisham.

7. Angelo Lujan, who interned in the Mayor’s Office under both Mayor Berry and Mayor Keller and who now works for a nonprofit that helps people with disabilities.

8. Jaclyn Sanchez, Councilor Sanchez’s daughter and a local salon owner.

9. Victor Segura, a small-business owner who was also a city hall appointee of Mayor Martin Chavez.

10. Dan Serrano, current member of the city’s Environmental Planning Commission and founder of the ABQWest Chamber of Commerce.

11. Melonie Mathews, program director for the Gathering of Nations Ltd.

12. Andres Rivera, a University of New Mexico School of Law student.

13. Thanh-Lan T Sena, who said she wants to be the first Vietnamese-American woman to serve on the Albuquerque City Council.

14. Jeff Turcotte, a coach and activities director for St. Pius X High School.

15. Dr. Joe Valles, a dentist and former president of the West Side Coalition.

16. Pete Zollinger, longtime Democratic Party political activist who ran for congress and the Democratic nominee against former Republican United States Congressman Steve Schiff.

https://www.abqjournal.com/1428168/16-apply-to-replace-sanche-zon-city-council.html

COMMENTARY AND ANALYSIS

Mayor Tim Keller’s appointment for a replacement of Ken Sanchez is without a doubt one of the most critical appointments of his tenure as Mayor. The fact that there are 16 applicants for the political appointment means that the Mayor runs the risk of alienating and offending 15 of the applicants. Keller has already announced that he is seeking a second four year term as Mayor, and whoever he selects will be on the November 2021 ballot with him.

City Councilor Ken Sanchez and Mayor Tim Keller did not always get along. Councilor Sanchez was known for having an independent streak always concerned for what was in the best interests of his constituents. Ken Sanchez was considered a moderate democrat attuned to the needs of his constituents. There were many times Councilor Sanchez would vote against what a Mayor wanted, including Keller.

Mayor Tim Keller is considered a “progressive democrat” and won in 2017 with the overwhelming support of the “progressive wing” of the Democratic party commonly referred to as “the Bernie Sanders” wing of the party. City Hall sources and insiders are saying Keller is under pressure to select a strong progressive Democrat, preferably a woman, to fill the position.

Mayor Keller would be wise to select a replacement for Ken Sanchez and appoint someone, female or male, who is in the same political vein as Ken Sanchez philosophically and who fully understands the district and who is committed to continuing the work of City Councilor Ken Sanchez including his plans for the westside, even if contrary to what Mayor Tim Keller may want or feels what is in the best interest of the Westside.

Reagan’s Shameful Legacy Of Homelessness In America Recalled; Santa Fe New Mexican: State Could Afford To End Homelessness; A Roadmap To End Homeless Proposed

City Hall has deemed that a 24-hour, 7 day a week temporarily shelter for the homeless as critical toward reducing the number of homeless in the city. The city owned shelter is projected to assist an estimated 300 homeless residents and connect them to other services intended to help secure permanent housing. The new facility would serve all populations, men, women, and families.

On February 27, the City of Albuquerque released a report and analysis announcing the top 3 preferred locations for the new 24/7 homeless shelter known as the “Gateway Center”. The 3 locations are:

1. University of New Mexico land next to the state laboratory, near Interstate 25 and Camino de Salud
2. Coronado Park at 3rd Street and Interstate 40
3. The former Lovelace hospital on Gibson

Now that the city is slowly “winnowing down” the site selection for the new 24-7 homeless shelter, a discussion of the extent and nature of the homelessness in the city and the state is order. Critics often assert that to try and end homelessness is futile and it has been problematic for decades going as far back as the Republican President Ronald Reagan. However, there are those who believe otherwise. The blog article is a discussion of the argument that the state of New Mexico, even as poor as it is, can end homelessness.

REAGAN’S SHAMEFUL LEGACY OF HOMELESSNESS IN AMERICA

In the early 1970s in California, then Governor Ronald Reagan in the interest of reducing mental-health costs, Reagan closed numerous hospitals and facilities for treating the mentally ill and, because families either couldn’t care for them or families just didn’t exist anymore, the mentally ill were relegated to the streets of cities and towns to fend for themselves. In Reagan’s view, it saved money and reduced the size of state government. The result was that mental health facilities closed and the mentally ill wound up on the streets.

“In November 1980, Republican Ronald Reagan overwhelmingly defeated Jimmy Carter, who received less than 42% of the popular vote, for president. Republicans took control of the Senate (53 to 46), the first time they had dominated either chamber since 1954. Although the House remained under Democratic control (243 to 192), their margin was actually much slimmer, because many southern “boll weevil” Democrats voted with the Republicans.

One month prior to the election, President Carter had signed the Mental Health Systems Act, which had proposed to continue the federal community mental health centers program, although with some additional state involvement. Consistent with the report of the Carter Commission, the act also included a provision for federal grants “for projects for the prevention of mental illness and the promotion of positive mental health,” an indication of how little learning had taken place among the Carter Commission members and professionals at NIMH. With President Reagan and the Republicans taking over, the Mental Health Systems Act was discarded before the ink had dried and the CMHC funds were simply block granted to the states. The CMHC program had not only died but been buried as well. An autopsy could have listed the cause of death as naiveté complicated by grandiosity.”

https://www.salon.com/2013/09/29/ronald_reagans_shameful_legacy_violence_the_homeless_mental_illness/

Ronald Reagan when elected President believed he had mandate to reduce federal spending. In reality, he increased it through the escalating military budget, all the while slashing funds for domestic programs that assisted working class Americans, particularly the poor.

“The most dramatic cut in domestic spending during the Reagan years was for low-income housing subsidies. Reagan appointed a housing task force dominated by politically connected developers, landlords and bankers. In 1982 the task force released a report that called for “free and deregulated” markets as an alternative to government assistance – advice Reagan followed. In his first year in office Reagan halved the budget for public housing and Section 8 to about $17.5 billion. And for the next few years he sought to eliminate federal housing assistance to the poor altogether.

In the 1980s the proportion of the eligible poor who received federal housing subsidies declined. In 1970 there were 300,000 more low-cost rental units (6.5 million) than low-income renter households (6.2 million). By 1985 the number of low-cost units had fallen to 5.6 million, and the number of low-income renter households had grown to 8.9 million, a disparity of 3.3 million units.

Another of Reagan’s enduring legacies is the steep increase in the number of homeless people, which by the late 1980s had swollen to 600,000 on any given night – and 1.2 million over the course of a year. Many were Vietnam veterans, children and laid-off workers.

In early 1984 on Good Morning America, Reagan defended himself against charges of callousness toward the poor in a classic blaming-the-victim statement saying that “people who are sleeping on the grates…the homeless…are homeless, you might say, by choice.”

Tenant groups, community development corporations and community organizations fought to limit the damage done by Reagan’s cutbacks. Some important victories were won when Clinton entered office—the expansion of the Earned Income Tax Credit and stronger enforcement of the CRA. Funding for low-income housing, legal services, job training and other programs has never been restored to pre-Reagan levels, and the widening disparities between the rich and the rest persist.”

Source of quoted: https://shelterforce.org/2004/05/01/reagans-legacy-homelessness-in-america/

See also: “The great eliminator: How Ronald Reagan made homelessness permanent”:

https://www.sfweekly.com/news/the-great-eliminator-how-ronald-reagan-made-homelessness-permanent/

POINT IN TIME SURVEY

Each year, the “Point in Time” (PIT) survey is conducted to determine how many people experience homelessness on a given night, and to learn more about their specific needs. The PIT survey is conducted on only one night to determine how many people experience homelessness and to learn more about their specific needs. The PIT count is done in communities across the country in both urban and rural areas, and counting both sheltered and unsheltered homeless people.

The PIT count is the official number of homeless reported by communities to the federal Department of Housing and Urban Development (HUD) for funding and to help understand the extent of homelessness at the city, state, regional and national levels.

On January 8, 2020, the U.S. Department of Housing and Urban Development (HUD) report released the annual Homeless Assessment Report to Congress containing the statistics for Albuquerque and New Mexico.

The link to the report is here:

https://www.hudexchange.info/resource/5948/2019-ahar-part-1-pit-estimates-of-homelessness-in-the-us/

NATIONAL “POINT IN TIME” HOMELESS COUNT

The PIT survey found that an estimated 567,715 people nationwide, both sheltered and unsheltered, were identified as homeless which is a 2.7% increase over 2018. Overall homelessness declined in 29 states and the District of Columbia, but increased in 21 states.

Nationwide, 396,045 people experienced homelessness as individuals, meaning they did not have children with them. Individuals made up 70% of the total homeless population. Half of those who experienced homelessness as individuals were staying in sheltered locations.

NEW MEXICO “POINT IN TIME” HOMELESS COUNT

According to the PIT, New Mexico had the nation’s largest percentage increase in homelessness from 2018 to 2019 in the nation with an increase of 27%. New Mexico also had a 57.6% increase in chronic homelessness last year, also the highest in the nation. The percentage increase in Albuquerque’s homeless population alone rose by 15%. In New Mexico there were 2,464 homeless people in 2019 and of that total, 1,283 persons, or about 52%, were chronically homeless.

ALBUQUERQUE “POINT IN TIME” HOMELESS COUNT

The New Mexico Coalition to End Homelessness was contracted by the City of Albuquerque to conduct the annual PIT count. The Coalition puts the number of homeless people in Albuquerque at 1,524 sheltered and unsheltered individuals. This 1,524 is 206 more than were counted in 2017 when 1,318 homeless people were counted in the city limits.

CATEGORIES OF HOMELESS

The New Mexico Homeless Management Information System (HMIS) is a federally mandated system operated by the New Mexico Coalition to End Homelessness in cooperation with the New Mexico Mortgage Finance Authority and the City of Albuquerque. The follow statistics reflect those people who sought help for their homelessness from a government funded agency participating in HMIS during calendar year 2018.

According to the New Mexico Homeless Management Information System (HMIS), homeless people have varying needs based on their age and abilities. HMIS sub-divides age into three categories based on level of support required and length of time the individuals or families remain homeless. The 3 age categories are as follow:

1. Those who exit homelessness quickly, usually within 30 days, mostly because of their own efforts

2. Those who exit homelessness needing longer term assistance, and

3. Those who remain homeless despite seeking assistance.

THE UNDER 18 AGE GROUP

According to HMIS, in calendar year 2018 “there were 2,585 people under the age of 18 who were homeless. Of this group 584 were separated from their parents or guardians. The other 2,001 people were accompanied by a parent or guardian who was also homeless. During the year 340, of these children were able to resolve their homelessness within 30 days and 607 were able to exit to permanent housing after a longer period of stay. 1,016 of these children remained in the housing or shelter at the end of the year. 622 children left a shelter or housing program but remained homeless. Of the 622 who remained homeless, we estimate that 124 of them were separated from their parents or guardians.”

(Quoting Analysis of Resources Needed to House Everyone in New Mexico Hank Hughes, New Mexico Coalition to End Homelessness)

YOUTH AGES 18-24

According to HMIS, in calendar year 2018 “a total of 981 people aged 18 to 24 were homeless in 2018. 221 of them were part of a family and 100 of them were the head of their household. 760 were unaccompanied. 54 left for permanent housing in 30 days or less and 124 were able to secure permanent housing after a longer stay. 425 remained in the shelter or housing program at the end of the year. 378 left a shelter or housing program and remained homeless.”

(Quoting Analysis of Resources Needed to House Everyone in New Mexico Hank Hughes, New Mexico Coalition to End Homelessness)

ADULTS AGES 25 & OVER

According to HMIS, in calendar year 2018, “9,021 people aged 25 and up were homeless in 2018. Of these, 1,126 were in families and 7,647 were unaccompanied, while for 248 no household type was reported. 503 left for permanent housing within 30 days of entry into a program and 1,163 secured permanent housing after a longer stay. 4,578 remained in a shelter or housing program at the end of 2018. 2,777 left a shelter or housing program and remained homeless and about 2305 of them were unaccompanied and 472 were part of families.

Overall a total of 897 people exited quickly with little help from the services system. A total of 1,894 were able to exit homelessness with longer term help and 3,777 people remained homeless after seeking assistance. Thus, while the current system is helping many people exit homelessness, most people experiencing homelessness are not receiving enough help or the right help.”

(Quoting Analysis of Resources Needed to House Everyone in New Mexico Hank Hughes, New Mexico Coalition to End Homelessness)

INTERVENTIONS TO HELP PEOPLE EXIT FROM HOMELESSNESS

HMIS reports that there are two interventions that are considered best practices for helping people exit from homelessness: rapid rehousing and permanent supportive housing.

RAPID REHOUSING

“Rapid housing is the best practice for families and individuals who can reasonably be expected to obtain employment and support themselves and their families within two years. Rapid rehousing involves providing rental assistance to help the homeless household move into an apartment, and then provide rental assistance that decreases over time as the household income increases until the assistance is no longer needed. Supportive services are provided to help the family set goals and obtain other resources they may need such as child care and medical care.”

(Quoting Analysis of Resources Needed to House Everyone in New Mexico Hank Hughes, New Mexico Coalition to End Homelessness, page 3, 4) )

PERMANENT SUPPORTIVE HOUSING

“Permanent supportive housing is the best practice for families and individuals where the head of the household is disabled and may never be able to support the household. Permanent supportive housing involves providing rental assistance and support services for as long as they are needed. Clients of permanent supportive housing are expected to pay 30% of their income for rent, with the program paying the difference.

Intensive supportive services are offered to assist clients in obtaining health care, mental health care, substance abuse treatment, job training, and other assistance as needed. Permanent supportive housing may be provided in scattered site privately owned apartments or in site based apartments owned by the permanent supportive housing program. Clients of permanent supportive housing often move on to less costly forms of assistance such as regular public housing after they have achieved a good level of stability.”

(Quoting “Analysis of Resources Needed to House Everyone in New Mexico Hank Hughes, New Mexico Coalition to End Homelessness” page 3, 4.)

SANTA FE NEW MEXICAN: STATE COULD AFFORD TO END HOMELESSNESS

In addition to operating a Rapid Housing and Permanent supportive housing program, there is a need to build new permanent supportive housing. On January 16, the Santa Fe New Mexican published a report written by reporter Olivia Harlow on an in-depth analysis on how much it would cost the State of New Mexico to house the homeless. The analysis report was compiled by the New Mexico Coalition to End Homelessness. Below is the article in full with a link to the Santa Fe New Mexican Report:

HEADLINE: State could afford to end homelessness
BY Olivia Harlow
Jan 16, 2020

“A new, in-depth analysis on how much it would cost the state government to house those without a home suggests eradicating homelessness across New Mexico could be feasible in the next five years.
The report, compiled by the New Mexico Coalition to End Homelessness, examines data from several statewide organizations and estimates it would cost the state about $212 million over five years to expand existing programs and $48 million in capital outlay for additional housing units to get more than 6,500 people off the streets and ensure others don’t end up there in the future.

THE LINK TO NEW MEXICO COALITION TO END HOMELESSNESS IS HERE:

http://www.nmceh.org/pages/resources.html

The ultimate goal is to end homelessness in New Mexico — or, more accurately, “to create a system in which homelessness is rare and nonrecurring,” said the coalition’s executive director, Hank Hughes.

“It’s doable, it’s feasible and it’s important,” said Nicole Martinez, executive director of Mesilla Valley Community of Hope, a Las Cruces-based nonprofit that offers housing programs, case management and educational services.

“This isn’t a pipe dream,” she added. “Homelessness isn’t something that’s going to go away on its own. It’s going to require these types of solutions.”

A spokeswoman for Gov. Michelle Lujan Grisham said the governor was unavailable Thursday to comment on the coalition’s proposal but included in her proposed spending plan funding for programs that assist the homeless community.

The governor’s budget includes $4 million for a permanent, supportive housing program that would provide vouchers for “rental assistance and support services for homeless adults diagnosed with serious mental illness, functionally impaired and very low income,” Judy Gibbs Robinson said in an email.

The governor’s spending plan also includes $2.4 million for programs that address youth homelessness, Robinson said.

The coalition’s comprehensive report, Analysis of Resources Needed to House Everyone in New Mexico, suggests two approaches to address homelessness: rapid rehousing and permanent supportive housing.

Rapid rehousing is a method that works best for people who eventually can obtain employment and support themselves and their families, Hughes said. Permanent supportive housing is a strategy better suited for people with disabilities who might never be able to maintain a household on their own and require lifelong financial assistance.

According to the new report, the total number of New Mexicans experiencing homelessness ranges between 15,000 and 20,000 people each year.

In 2018, more than 12,500 people in precarious living situations sought services from agencies that supply data to the New Mexico Homeless Management Information System, a project of the New Mexico Coalition to End Homelessness. But this number doesn’t include the thousands of people each year who receive help from privately funded agencies that don’t share data and those who do not seek help at all, Hughes said.

The coalition’s report says more than 6,500 individuals per year do not get the help they need to get off the streets. The money to provide them with housing should come from the state, Hughes said.

“The state does not really do much in terms of housing and homelessness right now,” he said, noting its current funding for programs that aid the homeless is about $2 million.

Hughes said he hopes the state will provide an additional $6 million this year to address homelessness and will arrive “at a peak period” in the report’s five-year plan in which it will provide $60 million a year.

The report proposes the state provide $30.65 million in the first full year of the plan, $61.3 million per year in the following two years, $40.9 million in the fourth year and $20.45 million in the fifth year.

Additionally, it recommends the state make a one-time investment of $48 million for construction of permanent supportive housing for 300 people “with such severe substance abuse and mental health issues that they would pretty much need constant care,” Hughes said.

The total cost for the housing project would be around $72 million, Hughes said, but he expects $25 million of the cost to come from the National Housing Trust Fund, the Low-Income Housing Tax Credit Program and other sources.

Hughes envisions around-the-clock case management at the apartments and medical assistance.

The $260 million total over five years is “a significant increase” in the state’s investments in addressing homelessness, he said.

But he and other advocates said the cost would be partially offset by decreased spending on emergency services for people in the homeless community.

A recent study by the University of New Mexico, cited in the coalition’s analysis, followed 95 chronically homeless people in Albuquerque and concluded that after 12 months in housing, the costs for emergency rooms, medical outpatient procedures, emergency shelters and jail time for the group decreased by 31 percent — or $12,832 per person. The savings in one year was more than $1 million, the study said.

“What happens is that as people are homeless, those who fell on hard times, they start to use more and more emergency services to get their needs met,” Hughes said. “… If you house those people, there’s a net savings to the overall system.”

Martinez agreed, noting that a model known as Housing First, which focuses on immediately finding homes for those living on the streets, is critical to solving problems that stem from homelessness.

“A lot of times, people refer to housing as being health care,” she said. “… It helps improve people’s quality of life, giving them something that’s stable and secure. It’s a good starting point to helping improve their well-being and health care.”

But the report says agencies would have to double their current efforts for permanent supportive housing and triple their efforts for rapid rehousing to fully address homelessness across the state.

“It will be a challenge,” Martinez said, “but we are used to challenges. And we need to start working on them now.”

https://www.santafenewmexican.com/news/local_news/report-state-could-afford-to-end-homelessness/article_a6a98c26-388d-11ea-927c-f3bd9ca6d84a.html?fbclid=IwAR2P3_gMhoRQbtMc5aDbzIwoJZgEfZdPRUj67v6RYSumfgdlmh9YSSg17qU

ANALYSIS AND COMMENTARY

President Ronald Reagan is long gone, but his dark shameful treatment of the mentally that resulted in homelessness in American is something we all continue to deal with on national and local levels. What is so damn pathetic, the Party of Reagan is now the Party of Trump, and its not likely even Reagan would fit into the Republican Party. Government, which Reagan loathed, still remains the single most viable approach to solving America’s homelessness.

The City of Albuquerque, Bernalillo County and the State of New Mexico have a moral obligation to assist the homeless, especially those who suffer from chronic mental illness. More needs to be done by the city, county and state to reduce the ever-increasing numbers of homeless.

The only way to reduce the number of homeless is to reach a viable consensus and implement an aggressive plan on how to reduce the number of homeless. It will mandate the city, county and the state to work with virtually all the charitable providers, “pooling of resources” and work to get arrive at an action plan.

The report and analysis compiled by the New Mexico Coalition to End Homelessness provides a viable road map to achieve the ultimate goal to end homelessness in New Mexico within 5 years. What is needed is the political will and commitment by our elected officials.

______________________________________________________

POSTSCRIPT

On March 6, the Albuquerque Journal publish the following editorial:

Editorial: Shelter needs city, county, providers, UNM on same page
BY ALBUQUERQUE JOURNAL EDITORIAL BOARD
Friday, March 6th, 2020 at 12:02am

“With thousands of people sleeping on our streets and a minimum of 14 million taxpayer dollars on the line, it is essential the leadership of Albuquerque, Bernalillo County, the University of New Mexico and various service providers work together to make a 24/7 low-barrier homeless shelter a reality.

Because given the myriad causes of homelessness – including behavioral health issues and substance abuse – one entity does not have the expertise or funding to do it alone.
Mayor Tim Keller’s administration has consistently favored a single 300-bed site, and city leaders say there have been regular meetings and frequent communication with county leaders and officials about the planned Gateway Center. The county manager and two commissioners are advocating for multiple smaller sites for specific homeless populations, and maintain the city has ignored their input.

Last week, the mayor held a news conference on a vacant strip of land owned by UNM near Interstate 25 and Lomas, the city’s preferred site for the shelter. Keller says the site has many advantages – it’s vacant, making it easier and less expensive to build on, especially if UNM donates it; it’s near medical and behavioral health services and local interstates, making services and transportation more accessible; and it’s not as close to neighborhoods as other options, limiting residential concerns.

UNM and county leaders were not in attendance. UNM, which has yet to announce whether it will donate the land, has faced pushback from many concerned about student safety on campus. The university is awaiting results from a just-completed survey of university faculty, students and others about the site, which is about half a mile from main campus.

But a decision – either that UNM has rejected the idea or that it is willing to explore the site as long as security concerns can be addressed – is needed soon.

That’s because everything is on hold until then. The old Lovelace Hospital on Gibson and Coronado Park, at Third and I-40, are the other finalists, but nothing is moving forward pending UNM’s decision.
(Regardless of the shelter’s eventual site, a plan to reclaim Coronado is essential. Its current condition as a campsite for the addicted and the destitute is unacceptable.)

Also needed is a decision on the location of the planned crisis triage center/psychiatric hospital UNM is partnering with the county on. The triage center is meant to help stabilize those in crisis who might otherwise end up in jail or an emergency room. It makes sense to have the facilities in close proximity if not co-located, as many clients will need the services of both.
But most importantly, cooperation among the various entities is crucial if the shelter – one that will take all comers regardless of gender, age, sobriety, pets, belongings and religious faith or lack thereof – is to meet its projected timeline of a 2021 groundbreaking and 2022 opening.

The city currently runs the 450-bed emergency shelter west of town, obtained $14 million from city taxpayers for a new 24/7 shelter and offers a housing voucher program. The county has multiple transitional housing projects, works closely with service providers and gets around $20 million annually from its behavioral health tax. University of New Mexico Hospital treats many in the homeless population in its emergency room and has psychiatric expertise.

County Manager Julie Morgas Baca and Commissioners Debbie O’Malley and Jim Collie told the Journal last week that a phased-in approach that starts in the 75-bed range and potentially grows to other locations makes more sense, that there aren’t the service providers to staff a 300-bed facility and that there is no next-step strategy to get folks out of the shelter.
But the city points out it is already running the 450-bed shelter and insists there’s enough expertise in these stakeholders to come up with solutions.

Perhaps a summit where all of stakeholders are in the same room at the same time could move the needle.

The voters have spoken; the homeless shelter needs to be built ASAP. Taxpayers have little interest in bureaucratic squabbles and big interest in helping their fellow men, women and children and cleaning up our streets.”

https://www.abqjournal.com/1428145/shelter-needs-city-county-providers-unm-on-same-page.html

For a related blog article see:

We Have Moral Obligation To Help Our Homeless