NEW MEXICO Issue 2 • Fall 2007

Health Care Committee Recommendations Consultant Reports

Interim Committees: Work Plans

Political Tidbits: Scandal Summary

PO Box 808 Roswell, NM 88202-0808 $10.00 USD The Senate The deliberative and collegial body of the legislature: clockwise from upper left, Sens. Mark Boitano, R - Bernalillo, and Bernadette Sanchez, D - Bernalillo, chat. Sens. William Payne, R - Bernalillo, Vernon Asbill, Eddy & Otero, lower, James Taylor, R - Bernalillo, and Gay Kernan, R - Chaves, Curry, Eddy, Lea and Roosevelt pledge the New Mexico State flag. Sue Wilson Beffort R - Bernalillo, Sandavol, Santa Fe and Torrance, bids farewell to the newest Senator, Lynda Lovejoy, Bernalillo, Cibola, Mc Kinley, Rio Arriba and Sandoval who was appointed to replace Leonard Tsosie who step down from the senate to serve on the Navajo Nation Council, as Rod Adair, R - Chaves and Lincoln, checks his personal electronic device. Majority Floor Leader Michael Sanchez, D - Valencia led the Democrats delegation. Lt. Gov. Diane Denish, D, as president of the senate, chairs a final debate, March 17, 2007, at the close of the regular session. Sen. John Ryan, R - Bernalillo, listens as Sen. Gerald Ortiz y Pino, D - Bernalillo, reads a bill. TABLE OF CONTENTS

NEW MEXICO Fall 2007 COLUMNS The Magazine of Ideas and Influence Voter ID Rules Confuse Voters and Poll Workers in Santa Fe Lonna Atkeson 5 CO-PUBLISHER Jack Swickard Tidbits from La Politica: Summer 2007 [email protected] Jose Garcia 6 EDITOR / CO-PUBLISHER Harold Morgan Tax Research Institute Informs, Educates; Principles of [email protected] Taxation Outlined Richard L. Anklam 7 PHOTOGRAPHY Mark Bralley [email protected] FEATURES For prints of photographs in Capitol Report Healthcare Discussion Continues 8 New Mexico, contact Mr. Bralley. He blogs at www.mgbralley-whatswrongwiththispicture.blog spot.com. Quantitative and Comparative Analysis of Reform Options for Extending Health Care Coverage in New Mexico CREATIVE DIRECTOR Mathematica Policy Research Inc. 9 Jennifer Foster [email protected] Health Care Changes Committee Emphasis 12 DIRECTOR OF SALES Lynne Yaple Potential Impacts on Revenue, Tax Administration, and [email protected] Example Taxpayers of Alternative Health Insurance Reform Proposals WEB SITE: www.capitolreportnm.com Office of Tax Policy: N.M. Taxation and Revenue Affiliated Web site: www.nmnews.net Department 14

Capitol Report New Mexico is published by Triton- Fall 2007 Legislative Interim Committee Progress, a partnership of The Triton Group, Inc., Work Plans 18 of Roswell, NM, and Progress Publishing, Inc., of Albuquerque, NM. Triton-Progress publishes Tom Horan Experience Roswell magazine and the Cloudcroft, Jack Swickard, Co-Publisher 25 New Mexico, Visitors Guide.

Administrative Office BRIEFS The Triton Group, Inc. PO Box 808 Eminent Domain Reform Given A 11 Roswell NM 88202-0808 505-624-7729 Size of NM First Implementation Group Measures Interest 12 SUBSCRIPTIONS: Capitol Report New Mexico is $10.00 per copy. A one- year subscription (three issues) is $25.00. As part of your subsription, your copy will be mailed to you in an envelope, first class mail. Send Health Coverage Recommendations 15 your subsription payment to: Capitol Report New Mexico, PO Box 808, Roswell, NM 88202-0808. SUBSCRIBERS: Please send changes of address to Capitol Report New Stress Produces Liberals, Security Mexico, PO Box 808, Roswell NM 88202-0808. Please include new Produces Conservatives 24 address and current mailing label. Capitol Report New Mexico is mailed three times each year to qualified readers. LETTERS to the EDITOR; Send to [email protected]. Parking Garage Set for West of Capitol 20 Unsolicited material must be accompanied by return postage. Capitol Report New Mexico assumes no liability for damage or loss. Information ACI, Conservation Voters Release Scorecards 17 and instructions contained in this publication are believed to be reliable. However, Capitol Report New Mexico does not guarantee the accuracy, completeness or applicability of the information and instructions Bernalillo GOP to Dump Deadbeat Dues Dudes 26 contained herein: and the company disclaims all legal responsibility thereof.

©2007 The Triton Group, Inc. Except for purposes of review, material On the Cover: Tom Horan, piloting. contained herein may not be reproduced without prior written consent. FROM THE PUBLISHERS

n July we attended a presentation in Santa Fe from one of those self-appointed “advocates” intent on saving a particular part of the policy world. This individual I repeated the common myth that the New Mexico Legislature meets only annually. As it happened, two legislative committees were meeting that day. Capitol Report New Mexico is about getting through the mythology Swickard Morgan and presenting serious policy information that is not easily available. We appreciate the positive reaction from our readers. One reader, a Santa Fe businessman who has a necessity-driven first name relationship with the city council said, “Thanks for sending the magazine. It is very informative on the ‘Paseo de Peralta Loop’ workings.” We have had legislators and others call and ask that the magazine be sent to people. The healthcare information motivated most of those calls. One legislator said, “Response I hear to Capitol Report is very positive. Had a chance to read it cover-to-cover on (a) flight. Very well done. Appreciated the health report. Think it will serve as a road map for many. And, the layout is beautiful and easy to read.” The head of a state employee retirees group wanted 20 copies for members to use as a reference tool. A state agency wrote, “Your publication provides valuable insight.” That’s the plan. Our Web site, www.capitolreportnm.com is an extension of the magazine. We cannot print the entire 218-page healthcare model evaluation from Mathematica Research. But we can — and have — tucked onto the Web site. For another example, the listing, from a news release, of the recommendations from the Health Coverage for New Mexicans Committee appears on page 15. The committee’s final report is on our Web site. Another extension is our blog, http://capitolreport nm.blogspot.com. It began in late May. There are two or three postings each week. Like the magazine, the blog tends to serious material receiving little attention in the mainstream media — developments in the New Mexico economy and policy matters relating to Jack Swickard prepares for his flight with Tom Horan. the state. Often we will post the source material. The gossipy political details, we leave to others. Our January issue will mail just after the first of the year. We will have a preview of the 2008 session.

*****

Co-publisher Jack Swickard, a former newspaper editor, conducted his interview with lobbyist Tom Horan while flying a Schweitzer 300 helicopter from Albuquerque to Shawnee, Okla. In an earlier life, both were Army helicopter pilots with combat flying experience in the Vietnam War. The Horan interview appears on Page 25 in this issue of Capitol Report New Mexico.

4 Capitol Report New Mexico / FALL 2007 Voter ID Rules Confuse Voters and Poll Workers by Lonna Atkeson, Ph.D.

In a democratic some form of identification at the voter ID, a 16% increase. Even if voters society there is a polls, while 35% did not. Similarly, did not realize they were being asked tension between the in a different post election survey of for identification when they testified goal of maximum Bernalillo poll workers, about 56% verbally to their identity, this error in our ballot access indicated they asked for identification data should be randomly distributed and and preventing all (39%) or most of the time (16%), therefore we should not see an effect. voter fraud. This but 44% indicated they asked for it only The fact that we do see an effect, and Atkeson tension is visible some of the time (26%), hardly at all that it strengthens when we measure in the policy (11%), or never (7%). Both data confirm Hispanic ethnicity by surname instead of debate surrounding the issue of voter that while some poll workers were self-identity, suggests that the law was not identification. vigorously requiring some form of voter applied equally across all groups. identification, others were not. When we examine our poll worker On one side are those who claim voter data, however, we find no evidence that fraud is a big problem and to ensure In more sophisticated analysis, we different types of poll workers asked for the integrity of our election system we examined the larger debate and how identification differently. Thus, we do need to impose strong voter ID policies the New Mexico rule, allowing for a not see that white poll workers were more such as photo identification and proof broad diversity of implementation, was likely to ask for ID than Hispanic poll of citizenship. Others point out that applied. We modeled the influence of workers; statistically both groups asked there is little systematic evidence of voter race (Hispanic and other non-white), for voter identification, by their own fraud and argue that voter identification education, income, gender, age, whether assessments, equally. Likewise, we see no requirements create institutional barriers they voted early or not, whether they evidence that particular partisan groups to voter participation especially for the were first time voters, and their partisan or other demographic characteristics poor, minorities, young people, the elderly registration on whether voters showed influenced who asked for identification. and those with disabilities who are least some form of identification or not. We likely to have such identification. found that self-identified Hispanics and Therefore, there is no systematic evidence men were more likely to show some that specific subgroups of the population New Mexico has been at the forefront form of voter identification than non- applied the law differently, all groups of election reform and the debates here Hispanics and women and that early equally applied or misapplied the voter are a microcosm of the debates going on voters were less likely to show some form identification laws. in Congress and other state legislatures. of identification. In 2006, twenty-four states met the bare See http://vote2006.unm.edu for a minimum voter identification standards In addition, in our analysis, we substituted complete report of the research. required by the Help America Vote Act. Hispanic self-identification for a variable that represented whether or not the voter Dr. Atkeson is Professor and Regents Lecturer In the Some states, though, had very restrictive had a Hispanic surname. Surname offers Department of Political Science at the University of policies, requiring specific photo a strong cue to ethnic identity and as New Mexico. identification. New Mexico had a hybrid such may be a better representation of policy. The law required some form how poll workers and others determine of voter identification broadly defined Hispanic identity. Substituting this and included a simple written or verbal variable for self-identification provided statement attesting to a voter name, year stronger results. of birth and the last 4 numbers on their social security card. A voter who was the median age, education, income, gender (female) The rules were confusing to voters and and was not Hispanic, had a 69% poll workers alike. A post election survey probability of showing some form of in the First Congressional District of voter identification, while the same voter registered voters showed that 65% of with a Hispanic surname had a 85% Election Day and early voters showed probability of showing some form of Capitol Report New Mexico / FALL 2007 5 Tidbits from La Politica: Summer 2007

By Jose Z. Garcia

In the Spring Tidbits we highlighted supporter of Richardson. In the UNM cases university funds are the Metro Court Building boondoggle being used to supplement exceptionally high salaries paid to full and the Housing Authority scandal. cabinet secretaries appointed by Richardson. More scandals surfaced in the summer. The Las Vegas bilingual education The Sandoval County Wi-Fi scandal is a comedy of errors saga rocked the political class of worthy of a fictional banana republic in a B movie, but taxpayers San Miguel County. It wasn’t just have been stuck with well over $1 million in bills with little the $17,000 cost (including expenses advancement toward the wireless network the county promised. for the Al Hurricane band) of the Jonathan Mann, hired to write up specs for a $300,000 contract bilingual education program party last to master plan the project, was allowed to bid on, and win, the year; it was the enabling context of project. He had no background in wireless technology. During Garcia political connections underlying those the $2 million implementation phase no bids went out. Instead, expenditures that bothered people most. in 2005 the county created a private corporation, Sandoval Nearly $5,000 in party money went to catering from a restaurant Broadband, to oversee the project, and it hired Mann’s one- owned by Ralph Garcia, a prominent member of the West Las man company to oversee it. Mann, in turn, retained Dewayne Vegas School Board. Hendricks, to work for the new company. Hendricks’ firm, the The school district’s attorney publicly criticized State Rep. Dandin Group, was then paid $1.2 million without a bid to build Richard Vigil for obtaining $71,250 in pork barrel funding for the network. Mann resigned from the project in August 2006 his wife, Roberta, head of the district’s bilingual education and Hendricks left in May 2007. A consultant’s report indicated program, without consulting the school district, which was the $1.2 million had purchased “vaporware.” in financial trouble. Indeed, a few weeks later the Public Education Department took over the district finances when a Political Fallout $1.3 million shortfall was discovered. Four indictments were Attorney General Gary King has indicated he will be issued in June, to former school superintendent Joe Baca, school aggressive in pursuit of public corruption, and evidence board member Ralph Garcia, Roberta Vigil, and Beverly Ortega. suggests the public is growing impatient. In the Las Vegas case, Rep. Vigil has removed himself from the House Education for example, two school board members who defended the Committee. bilingual party (one of them is the brother of Rep. Vigil) were defeated in elections last February. And newspapers and blogs Lyonsgate are full of complaints about reported scandals. During a hard-fought re-election campaign last fall, State Land Commissioner Pat Lyons accepted campaign donations A Costly Win? just shy of $20,000 from Las Cruces real estate developer Moving from corruption to politics, an election in Dona Philip Philippou. In December, weeks before competitive bids Ana County mobilized opposition against what is widely for the project were due, Lyons hurriedly signed contracts for perceived as too-cozy a relationship between the political class Philippou to master plan a 4,200 acre parcel of state trust land and developers in the formation of public policy. Governor near Las Cruces, and a smaller tract north of Highway 70. In Richardson got the legislature to appropriate $115 million to return, Philippou will receive 40% of the net increase in value develop a spaceport in Sierra County which, if successful, would of a 2,400-acre portion of that land, leased to him at $37,000 bring space tourism there. But the legislature insisted that local per year as part of the deal. In February 5, Philippou donated governments would have to approve tax increases to help pay another $6,000 to Lyons’ campaign fund (Lyons is ineligible for for the project. re-election as Land Commissioner). In April the Dona Ana County commission put a $49 million tax increase on the ballot, supported by a group of wealthy University Largesse developers (including Philippou), bankers, and other business In late July Sen. John Arthur Smith asked Attorney General interests. In spite of a well financed media campaign and last- Gary King to investigate three deals where university funds minute cheerleading by the Governor himself, voters in the are paying salaries for political appointees in the Richardson predominantly Hispanic South Valley, who overwhelmingly administration. The most puzzling of these was created for supported Richardson in the past, strongly rejected the tax former NMSU official William Flores, who is being paid increase, as did other working class areas. $220,000 by NMSU to be Deputy Secretary in the Department While the tax increase squeaked through by 270 votes out of Higher Education, a political appointment normally paying of 18,000 cast, it polarized the county along class lines for the $85,000. Flores was given the title “Special Assistant to the first time in memory, creating new alliances, and energizing new Provost” at NMSU and assigned office space at the University, leaders to challenge what they perceive to be a political class although he is a full time Richardson appointee. too beholden to developers and the Governor’s agenda at the When Flores applied a few years ago for the presidency expense of their own. Philippou’s involvement in both the of NMSU, it may be recalled, Richardson was accused of Lyons scandal and the tax increase heightened these perceptions, pressuring a student regent presumably to help Flores’ chances, and the government’s role in promotion of growth is certain to and when Flores was turned down, Richardson publicly offered be on the political agenda in this booming part of New Mexico him an unspecified job in state government. Flores is currently in 2008. engaged to marry a niece of Sen. Mary Jane Garcia, a staunch

6 Capitol Report New Mexico / FALL 2007 Tax Research Institute Informs, Educates; Principles of Taxation Outlined

In 2002, Chuck Wellborn and a handful boom-time environment, which is driven the impact of other founding members formed significantly by an unsustainable energy of all taxes the New Mexico Tax Research Institute bonanza. levied on (“NMTRI”), a nonprofit, nonpartisan, Of greater concern is what happens a given member-supported organization to the state’s tax policy landscape when taxpayer, dedicated to providing factual, principled the surpluses run out, and the now not just a research and analysis to the tax policy increased commitments and demands single tax or debate in New Mexico. What gave rise to of under-funded retirement plans and tax rate. Anklam the organization was a recommendation road needs, healthcare, education, water, of the 2002 New Mexico First Town Hall and other social imperatives cross paths • Deviations from established on Taxes, an idea originally conceived with the reality of shrinking revenue tax policy in pursuit of economic of by Franklin Jones, Esq. Jones is sources. We believe fair and equitable development, social or other goals considered the most prominent father of tax policy should be at the forefront of should be well-reasoned and pursued New Mexico’s modern day tax system and the discussion whether talking about only when established tax policies he served as the Tax Commissioner for tax reductions or tax increases. But the are not significantly undermined Governor Cargo as chief implementer public often reacts more emotionally to and the results of such deviations of the (then) new tax system. An the subject of tax increases. can subsequently be measured and annual award given in Jones name by The NMTRI has adopted the evaluated. the NMTRI recognizing those who have following Principles of Taxation to made significant contributions to New serves as our contextual framework for The NMTRI performs tax research Mexico tax policy. evaluating state tax issues and policy: and publishes newsletters and fact sheets, The NMTRI does not advocate for speaks to various interested organizations, or against taxation. We study, inform • State and local taxes should be testifies to legislative committees, and educate the public and tax policy adequate to provide an appropriate sponsors an annual tax policy conference makers concerning the pressing issues level of those goods and services and a legislative outlook conference, of taxation facing our state. We believe best provided by the public sector, presents guest lecturer series, endows that well-versed policymakers and an such as education, public safety, law a scholarship at the Anderson Schools active, informed citizenry are essential for enforcement, streets and highways, of Management, and engages in other effective representative government. and the courts. activities aimed at providing reliable There are many reasons to belong to information on tax issues. the New Mexico Tax Research Institute. • State and local tax policy should do Members include individuals, a broad Two are succinctly stated in the following the least harm to the private economy. spectrum of businesses, associations, quotes, both from opinions by the Therefore, tax bases should be as not-for-profits, and municipal and Supreme Court of the United States. broad as possible so that tax rates can county governments. Tax policy touches “The power to tax involves the power be as low as possible in order to raise everyone. If you wish to the join the to destroy” - McCulloch v. Maryland, the necessary revenues. NMTRI, become more involved with 17 U.S. 316 (1819), Chief Justice John New Mexico tax policy, or educate Marshall. • State and local tax policy should be yourself further on the topic, visit our “Taxes are what we pay for civilized fair and equitable towards individuals website at www.nmtri.org or call us at society” Campañía General de Tabacos v. and businesses similarly situated. (505) 842-5833. Collector, 275 U.S. 87, 100 (1927), Justice Individuals with the same income level Oliver Wendell Holmes, dissenting. should be taxed the same. Businesses Richard L. Anklam is the president and executive As discussed by our board chairman engaged in similar commercial director of the New Mexico Tax Research Institu Dr. Brian McDonald in the last issue of activities should be subject to the same te. Previously, he has led New Mexico state and Capitol Report, our state has enjoyed level of taxation. local tax practices for two international accounting and consulting firms, and served as the Assistant a robust economy in recent years that Secretary/Tax Policy Director for the New Mexico has allowed for significant tax and • State and local tax policy should not Taxation and Revenue Department. expenditure activity on the part of the be costly to administer and should be legislature and executive, and in turn, has easily understood by taxpayers so as to created opportunities to either improve minimize taxpayer compliance costs. tax policy or to depart from good practices. Tax policy considerations tend • The state and local tax burden to take a back seat to the political in this should be evaluated on the basis of Capitol Report New Mexico / FALL 2007 7 Health Care Discussion Continues

The health care conversation has forums in Albuquerque on July Healthcare Crisis from Rural New moved from the Health Coverage 17. The Albuquerque meeting Mexico.” The survey respondents for New Mexicans Committee attracted a standing-room- were selected by the people to the realms of legislative only crowd of around 300 to the conducting the survey. committees and citizen forums. Unitarian Church. The September forums start the 10th in Carlsbad. Excerpts from two reports The Legislative Health and Human For the schedule, see http:// to the Health Coverage for Services Committee meetings www.healthactionnm.org/calend New Mexicans Committee (see accompanying story) will be ar.php?m=09&y=2007. are published here. The part forum in that the committee complete reports are posted will take public testimony during Also in July, Health Care for in the health care section at its coming meetings. All released the report of a www.capitolreportnm.com. One set of forums is coming from survey of 500 people from Luna, Ellipses show where more than an umbrella group called “Health McKinley, Mora, Roosevelt, Taos a word or two has been deleted Care for All New Mexico.” The and Curry counties. The survey from the two summaries. group began a series of 14 report is called “Voices of the Mathematica Policy Research Health Care Discussion Continues

Quantitative and Comparative Analysis of Reform Options for Extending Health Care Coverage in New Mexico

Mathematica Policy Research, Inc. Draft Final Report ,June 19, 2007

Executive Summary SCI program might be deemed a general welfare program for the purpose of employer participation and qualify as individual The Health Coverage for New Mexicans Committee requested coverage for the purpose of individual tax liability. that Mathematica Policy Research, Inc. estimate the cost of the current health care system in New Mexico and the relative cost of three alternative strategies to ensure that all New Mexicans Based on these conclusions, we developed several critical become and remain insured. assumptions that underlie all of the estimates in this report:

To develop estimates… we needed to develop relatively precise Each of the reform models would be structured to successfully specifications for key components of the models. Implicit in our navigate ERISA. To that end, when the reform model mentions specifications are a number of key decisions, including: the ability of self-insured employers to “opt out” of a plan, we assume that self-insured employers could take a full credit A focus exclusively on the non-institutionalized civilian against any assessments that would otherwise be mandatory, population under age 65 who are not enrolled in Medicare. if the employer offered coverage—without regard to the specifics of the coverage that is offered. Similarly, we assume Premium schedules for coverage in each reform model. that fair share payment required under the Health Coverage Plan’s is sufficiently small and nonspecific as to not infringe on Specification of employer roles and contributions, including the employers’ ERISA protections. Fair Share amount that employers would pay under the Health Coverage Plan. The SCI program is deemed a general welfare program for the purpose of employer participation, and also (though In addition, each of the reform models envisions various operationally much less important) qualifies as individual strategies to ensure compliance with a state requirement that coverage for the purpose of individual tax liability. all New Mexicans be insured, as well as strategies to control health care costs and improve the quality of care. Because The vouchers that would be provided to subsidize coverage any of the models could devise “best practice” approaches to under New Mexico Health Choices would not constitute achieve these goals, our estimates and projections assume that taxable income. they all do so with equal success. Individual contributions to coverage in the Health Security Act and New Mexico Health Choices could be made Legal Considerations through Section 125 “premium only” accounts, so that such contributions would be tax exempt. Any reform model that would touch employer-sponsored coverage can have important consequences for individual and employer tax liability and also implications with respect Current Coverage to the Employee Retirement Income Security Act (ERISA), which preempts state regulation of employee benefit plans. Coverage is not static—in every state, people move in and out Collaborating with Mathematica, the Institute of Public Law of different coverage from various sources, and gain and lose (IPL) at the University of New Mexico explored these issues in coverage during the year. An estimated 432 thousand New detail. Some of the principal conclusions of their analysis are: Mexicans are predominantly uninsured, accounting for 26% of non-institutionalized civilian population under age 65. Under The breadth of ERISA’s preemption clause, ERISA may pose the eligibility rules that were authorized in the 2006-2007 a significant obstacle to the success of each of the proposed legislative session, more than half of uninsured New Mexicans models. For the purpose of this analysis, it is reasonable to would be eligible for Medicaid or SCHIP. assume that worker contributions to coverage in the Health Security Plan and New Mexico Health Choices could be tax exempt. In addition, the vouchers and subsidies used Employer-sponsored plans are the predominant source to provide or supplement employee health coverage under of coverage for an estimated 42% of the state’s non- Health Choices may be tax-free to employees if the model is institutionalized civilian population under age 65. More than considered to be a general welfare program. In addition, the one-third of these New Mexicans are enrolled in self-insured

Capitol Report New Mexico / FALL 2007 9 Mathematica Policy Research Health Care Discussion Continues

employer plans. Public health insurance programs—primarily immediate savings gained if they are expected to occur at full including Medicaid and SCHIP, but also the SCI program— implementation. cover an additional 30% of the non-institutionalized civilian population under age 65. Both the Medicaid and SCHIP programs continue, although they may be incorporated into new programs. In addition, every individual eligible for Medicaid or SCHIP enrolls unless Current Health Care Expenditures they already are enrolled in an employer plan that continues to be available to them. Expenditures for personal health care services in New Mexico for the non-institutionalized population under age Self-insured employer decisions are driven by consideration 65 are projected to exceed $6 billion in 2007. Privately of premiums, and individuals always choose coverage that insured expenditures account for 44% of total health care entails the lowest cost to them. spending, while state and federal expenditures account for 37%. New Mexicans are projected to pay 18% of health When the reform model folds Medicaid and SCHIP into a new care expenditures out-of-pocket. program, waiting periods and other crowd-out provisions are suspended. Federal government finances nearly three-fourths of approximately $2.3 billion spent by federal and state Coverage decisions are made at the family level, and family government to finance health care in New Mexico. Medicaid coverage is preferred when it is available. New Mexicans not accounts for approximately two-thirds of all federal funds for living with a spouse or children make coverage decisions as health care in the state—nearly $1.1 billion. individuals.

Young adults first seek coverage on their own, accepting Stakeholders in New Mexico coverage from their own employers if offered before taking coverage as their parents’ dependent. Employers: While New Mexico is generally characterized as a “small-employer” state, approximately as many private-sector The essential impacts on coverage would be: workers are employed in very large firms in New Mexico as are employed in small firms. Overall, more than a third of private Under the Health Security Act, nearly 1.6 million New sector workers are enrolled in a self-insured plan in 2004, with Mexicans—94% of the non-institutionalized civilian population self-insured coverage ranging as high as 76% among all workers under age 65—would enroll in the new Health Security Plan. in the largest firm sizes. Of this population, nearly half… would be Medicaid or SCHIP enrollees. Responding only to lower premiums, most workers Consumers: Nearly half of the non-institutionalized civilian and dependents currently enrolled in self-insured plans would population under age 65 who have health insurance coverage become enrolled in the Health Security Plan. at any time during the year—either public or private—are uninsured part of the year, and 11% are uninsured all year. New Mexico Health Choices would expand Medicaid and Children age 18 or younger account for just 12% of all-year SCHIP the most, and rely most heavily on federal financing. uninsured New Mexicans… New Mexico’s non-institutionalized Assuming that self-insured employers terminate their plans in population under age 65 finances about 19% of expenditures New Mexico in response to a payroll tax with no exemptions, for health care services out-of-pocket, equivalent in 2007 to an nearly 1.6 million New Mexicans would enroll in coverage estimated $669 per person. New Mexicans who are uninsured through the Alliance in Version 1. Medicaid and SCHIP would all year spend $858 (per person) out of pocket…. account for nearly 60% of total enrollment in the Alliance Plan, and 57% of the total non-institutionalized civilian population Health care providers. Office-based providers… account under age 65…. for approximately 26% of their total health care spending by this population, followed by prescription drugs (20%), and The Health Coverage Plan would expand all current sources hospital inpatient care (18%). However, private insurance is an of coverage in New Mexico… Medicaid and SCHIP enrollment especially important source of financing for outpatient hospital would expand (but only to the extent that uninsured New care (56%) inpatient hospital care (50%), and emergency room Mexicans are currently eligible but not enrolled) covering 39% visits (43%), as well as for office-based medical services (48%). of non-institutionalized New Mexicans under 65. In addition, SCI would enroll 80 thousand now-uninsured adults under Change in Coverage Under the Reform Models expanded eligibility for the program….

To compare the estimation results across the reform models Change in Cost Under the Reform Models in a meaningful way, a number of assumptions about implementation and behavioral responses were applied The Health Security Act would generate the least new total consistently to each model. Key assumptions underlying the cost… due primarily to its low expected non-medical cost. We coverage estimates include: estimate that expenditures under the Health Security Plan would be lower than expenditures in the current case. Because Every New Mexican becomes insured. Moreover, the New Mexico Health Choices would layer new administrative reform models are immediately and fully implemented, with costs over an essentially private system of insurance… it would

10 Capitol Report New Mexico / FALL 2007 Mathematica Policy Research Health Care Discussion Continues

be more costly overall than either the Health Security Act or the Health Coverage Plan. Eminent Domain Gets A Any reform model that would reduce provider payments from current levels would, of course, be less costly than a reform model that maintained or increased provider payment levels. The Castle Coalition, a national grassroots The Health Security Act assumes provider administrative organization that has examined and graded eminent savings associated with fewer payers in the system, and it domain laws for each of the 50 states since the Kelo anticipates negotiating provider payment rates down to ruling, gives an A to New Mexico’s HB 393 that passed capture those savings. However, the Health Security Plan the 2007 legislature. probably would not ever be the only payer in New Mexico, and whether there is much provider administrative to be captured The Coalition’s early June news release said, “This is uncertain…. year, (NM) House Bill 393 removed the power of eminent domain from the state’s Metropolitan Because each of the reform models entails different relative Redevelopment Code—ensuring protection for New amounts of medical and non-medical cost, and because these components of cost would grow at different rates in each Mexico’s home and small business owners from of the reform models, their total costs are likely to grow at the type of eminent domain abuse seen in Kelo. By different rates over time…. now no longer allowing condemnations for blight, New Mexico passed some of the nation’s strongest Financing: Both the Health Security Plan and New Mexico reforms. Health Choices would put in place pure-community- rated systems of coverage—with no variation for personal “An exception was made for so-called ‘antiquated characteristics or location. Neither reform model would platting’ issues in Rio Rancho, but that amendment require that self-insured employers, in particular, participate was narrowly written and does not affect the heart in the new coverage programs that would be formed. To avoid of the reform.” The coalition’s evaluation of all 50 potentially severe adverse selection from self-insured employer states is available at: www.CastleCoalition.org/ groups, it would be necessary to minimize premiums (so that lower cost groups would come into the new programs, as well publications/report_card as high-cost groups). However, these reform models then would rely heavily on payroll tax financing. We estimate that the payroll tax necessary to support these programs could be as high as 8% ����������������������������������� of payroll… ������� ��������� ���� ����� ����� ��������� ������������������������������� Under the Health Coverage Plan, the Fair Share Fund would accrue an estimated $93 ����� �������������������������������� million in 2007. This amount would be ���������������������������������� ����������������������������������� earmarked to cover services for New Mexicans ������������������������������������ who are temporarily uninsured… but need ������������������ health care services. However, the state would also incur additional cost related to � ������������������������������������ significantly greater enrollment in Medicaid, ���������������������������������� SCHIP, and SCI… ������������������������������ � ��������������������������������� Economic Impacts The projected net ���������������������������������� economic impacts of the reforms are relatively ������������� small. Each of the reform models would � produce a small net increase in jobs in the ��������������������� state, by as much as 0.5% of the wage and ����������������� salary employment forecasted for 2007 (in � ������ ������ ��� ��������� ������������ New Mexico Health Choices v.1)… ������������

Issues for Further Consideration: Our analysis ����������������������������������������� raises a number of issues related to each ������������������������������������������� of the reform models that the Committee ������������������������������������ may wish to consider carefully in crafting a proposal to cover all New Mexicans. Among these are Affordability and Compliance, ERISA Preemption, Tax Status of Individual Payments for Coverage, Nonmedical Costs 1-800-204-4700 nmhia.com and Federal Medicaid/SCHIP Matching.

Capitol Report New Mexico / FALL 2007 11 Health Care Discussion Continues Committee Emphasis Changes Health Care Changes Committee Emphasis New Mexico’s health care everything about state policy spending. debate has meant a big shift activity in health issues and Community health centers in the work of the Legislative promised committee members are one effective tool for Health and Human Services to check the few items she improving access for the poor Committee for the 2007 interim. didn’t know immediately. and/or uninsured. Federal In starting the July 18 meeting Her presentation is posted in money for centers is there, in Las Vegas, Sen. Dede the health care section at but the paperwork to get the Feldman (D-Albuquerque), www.capitolreportnm.com The money “requires a lot of effort,” chair, said the committee file is: Tobler NCSL 6-18-07.pdf. she said. would focus on broader issues A few highlights follow. During the question period, for the 2007 interim. People “Cost is the biggest Sen. Steve Komadina, a requesting appropriations will challenge,” Tobler said. There physician (R-Corrales), asked if be asked to present directly is not a lot of comprehensive any state had developed an to the Legislative Finance cost legislation in the states effective program of incentives Committee, instead of following now, though a fair amount for people to be healthy. the usual practice of coming of incremental legislation is Komadina said, “There’s every first to the Health and Human appearing. incentive to not be healthy. This Services Committee, Feldman The other principal thrusts of is because if you’re sick, you will said. state proposals are reducing be treated, even in the ER.” Broader issues, as stated in the number of uninsured, Tobler responded that there the work plan, mean to “review quality, care for chronic was little money for prevention and analyze the findings disease, and prevention and treatment; the money is in of the study conducted by wellness. providing medical services for Mathematica Policy Research, Reducing the number of sick people. Inc., on behalf of the Health uninsured is receiving the Coverage for New Mexicans most attention from states. The Legislative Finance Committee regarding the New Mexico’s challenge is Committee planned an quantitative and comparative greater due to having a larger afternoon review of the health analysis for extending health percentage of uninsured. proposals at the August 22 care coverage in New Mexico.” People aged 19 to 30 are meeting in Red River. Concerns Recommendations are the fastest growing group of exist about the costs. The five planned for consideration uninsured. people appearing before the during the 2008 session. Quality improvement is committee included Pamela Laura Tobler of the “amazingly important,” Tobler Hyde, Secretary of the Human National Conference of State said. Services Department; and Bill Legislatures got the committee The sickest 10% of people Wiese, Institute of Public Health, started. Tobler appears to know account for 64% of health care University of New Mexico.

Size of NM First Implementation Group Measures Interest

One measure of the intensity of interest in health care is the size report on the 2008 recommendations in the January issue. of the implementation committee from the New Mexico First health Another measure of the topic interest is that Town Hall participants care town hall held in early May. At 53 people, it is around 40% of didn’t quite come to complete consensus on all recommendations, a all those who participated in the town hall. The committee met in late highly unusual situation for a Town Hall. July and divided itself into subcommittees to consider how to turn sets One example is use of the phrase “all persons living in New Mexico” of recommendations into reality. In all probability, says Bill Johnson, as compared to “all New Mexicans.” The differences are noted in committee chair, simpler recommendations will be proposed for the footnotes in the Town Hall report. 2008 legislative session which is limited to 30 days. The 60-day 2009 The backgrounder and final report and recommendations are session will get more complex matters. Capitol Report hopes to have a posted at http://www.nmfirst.org/townhalls/previous.html. Sen. Dede Feldman, Rep. John A. Heaton, D-Bernalillo, Chair D-Eddy

Rep. Danice Picraux, Sen. Steve Komadina, D-Bernalillo, Vice Chair R-Bernalillo

The joint Legislative Health and Human Rep. Joni Marie Gutierrez, Services Committee chaired by Sen. Dede Sen. Gay G. Kernan, D- Doña Ana R-Chaves, Curry, Eddy, Feldman (D-Bernalillo), met July 18, 2007, Lea & Roosevelt in the Student Senate room on the campus of New Mexico Highlands University, Las Vegas, and listened to a presentation of other state’s efforts at legislating health care reform from Laura Tobler, National

Conference of State Legislatures. Laura Tobler, National Conference of Rep. Mimi Stewart, State Legislatures Rep. Nora Espinoza, D-Bernalillo R-Chaves, Lincoln & Otero

Rep. Ray Begaye, Rep. Gloria C. Vaughn, Sen. Mary Kay Papen, Rep. Rick Miera, Rep. Miguel P. Garcia, Sen. David Ulibarri, D-San Jaun R-Otero D-Doña Ana D-Bernalillo D-Bernalillo D-Cibola, Socorro & Valencia Health Care Discussion Continues Tax Policies Impact

Office of Tax Policy N.M. Taxation and Revenue Department June 20, 2007 Potential Impacts on Revenue, Tax Administration, and Example Taxpayers of Alternative Health Insurance Reform Proposals

This report describes and provides estimates of the potential Existing taxes: impacts on state and federal tax revenues of alternative The (key assumptions) of the fiscal impacts of the different health insurance reform proposals under consideration by proposals on existing state and federal revenue sources…are: the Health Coverage for New Mexicans Committee. The report also discusses the potential administrative impacts of • Total compensation paid by employers is the same under the alternatives on the Taxation and Revenue Department, present law and under each alternative plan. and provides examples of the impact of the proposals on individuals and families with and without current health • All plans can be designed in a way that is not pre-empted insurance coverage at various income levels. by the Federal ERISA statute. If the New Programs are Table 1 summarizes the potential impacts of the alternative not preempted by ERISA, they would not be considered health insurance reform proposals on state revenues. The an employer plan for purposes of the tax deduction under Department could not determine all of the specific impacts of Section 125 of the Internal Revenue Code. the Health Coverage plan, so no estimates for that alternative are included. The revenue impacts of the Health Coverage • New programs are treated as tax deductible for GRT plan are significantly smaller than the other alternative plans. purposes. This raises the concern that the remaining GRT imposition on Medicaid could be interpreted by Federal New taxes: regulators as a discriminatory tax that must be removed. These are the new payroll-related charges required in the In the base case we assume that Medicaid remains plans. Mathematica estimates total taxable payroll to be GRT-taxable, but there is a significant risk that GRT on approximately $35 billion, thus, the estimated tax rate to yield Medicaid reimbursements would also be removed. these revenue amounts – assuming 100% compliance – ranges from 4.4% under HSA 1 to 8.1% under Health Choices 1. The table does not reflect employee contributions that would be required for participation in some of the plans.

Table 1 Summary of State Revenue Impacs of Alternative Plans (Millions of Dollars)

Health Security Health Security Health Health Act 1 Act 2 Choices 1 Choices 2

New Taxes 1,503 1,597 2,819 1,842

Impacts on Existing Taxes (83) (83) (104) (70)

Impacts Due to Increased 2 14 102 55 Economic Activity

Total State & Local Taxes 1,422 1,528 2,817 1,827

Source: TRD calculations based on estimates by Mathematica Policy Research Inc.

14 Capitol Report New Mexico / FALL 2007 Tax Policies Impact Health Care Discussion Continues

Revenue Impacts Due to Changes in Total Economic taxes, state income tax, and out of pocket health expenses. Activity This amount represents how much the individual or family Key assumptions in estimating revenue impacts are: has available to purchase all other goods this year, or to save for future purchases. • Total personal income changes by the same amount of Each set of examples for a specific individual or family total economic output as estimated by the BBER; type at a specific current wage start with the current wage of a worker who currently has employer-provided health • The elasticity of Personal Income Tax and Gross Receipts insurance. Wages in each of the other examples in the set are Tax collections with respect to Personal Income is one – i.e. then determined by the level of total compensation…. for each 1% change in personal income, collections of each Total compensation is the sum of wages, employer FICA, tax increase by 1%; employer health premium, and the employer payroll-based “contribution” or tax to the New Program under HSA1 • The elasticity of other state and local tax collections with or HC1… Total compensation is assumed to be fixed for Personal Income is 0.5 – i.e. for each 1% increase in personal each wage level at the level for a worker who currently has income, these revenues increase by 0.5%. … employer-provided health insurance. Premiums under current law are typical for the age, Both versions of the Health Security Act and both versions gender, and family characteristics of the specific worker. The of the Health Choices plan create large new state revenue employer is assumed to pay 80% of the current premium, sources – on the order of $1.5 to $3.0 billion annually. These and the employee 20%. The employee contribution under revenues would be paid by employers as a function of their HSA1 is assumed to be $2,000 per person (before any subsidy) taxable payroll, thus they would resemble current payroll- covered under the New Program. The premium subsidy under based taxes. The Taxation and Revenue Department may be HSA1 is 100% of the premium for individuals and families the appropriate agency to collect these revenues. below 100% of the federal poverty guideline for the family size, In addition, the HSA and Health Choices plans also a maximum premium of $420 per person per year (scaled by feature individual contributions for health insurance that are income) for individuals and families between 100% and 200% contingent on household income… of the federal poverty guideline for the family size, and a cap of 6% of income on the premium for individuals and families Examples of Net Impacts on Different Households above 200% of the federal poverty guideline for the family After- tax, after-health expenses income is calculated from size… wages, less any employee health insurance premium, federal Out of pocket (OOPs) expenses for currently-insured

Health Care Recommendations Submitted

The Health Coverage for New for individuals regardless of health coverage for employees. Mexicans Committee has submitted status or pre-existing condition; 8. Maximize health information its recommendations to Governor Bill require a standard percent of technology such as enrollment, Richardson. premium collected by insurance develop electronic medical According to a news release companies to be spent on direct records, diagnosis, billing from the Department of Human services; lower the twenty percent claims, provider payment and Services, the Committee’s key policy that insurance carriers can add reimbursement. recommendations include: to small group rates due to health 9. Increase provider recruitment status and claims experience and retention through incentives. 1. Create a single statewide and implement common data 10. Consider a state-operated unified health care authority or reporting. reinsurance or risk equalization governance structure based on 4. Allow employers to buy into the program to distribute risk the guiding principles adopted state employee health risk pool and manage the effects of by the Committee that would and individuals without access to catastrophic claims on any one be charged with implementing commercial insurance to buy into pool due to medical procedures. health care reforms regarding a Medicaid benefit plan. universal coverage, cost and 5. Consolidate or create larger “Many recommendations may quality controls and oversight health insurance risk pools where be implemented without delay of health care delivery in New beneficial and consolidate public following the successful passage of Mexico. administrative functions. legislation in 2008,” the release said. 2. Maximize enrollment in 6. Require individuals to obtain Medicaid and SCHIP as soon as coverage through public The committee’s final report economically feasible. programs or commercial is in the health care section at 3. Reform New Mexico health insurance. www.capitolreportnm.com. insurance and HMO requirements 7. Require employers to to move towards guarantee issue contribute in some way to

Capitol Report New Mexico / FALL 2007 15 Health Care Discussion Continues Tax Policies Report

workers are typical for the age, gender, and family In addition, the HSA and Health Choices plans also characteristics of the specific worker. OOPs for HSA1 and feature individual contributions for health insurance that are HC1 are assumed to be 20% higher, since the New Program contingent on household income. This raises the question of would provide less coverage than a typical current employer how these programs will be administered. The Department plan. OOPs for the currently uninsured is set equal to the already collects a substantial amount of information about health spending of an employee with current employer- income from almost all New Mexico households. Thus provided health insurance, assuming the load charge on the it would seem that the Department’s records would serve insurance is 12%. as a useful starting point for the calculations required in Examples are broken into two categories, those currently each of those plans. The Department does not have the covered and those currently not covered by employer- personnel currently to administer a new program like the ones provided health insurance. Several patterns are evident: contemplated in the plans. An alternative to administration by the Department would be for it to share information • Low- and middle-income households not currently it currently collects with whatever entity is charged with covered generally receive significant benefits under both the administering the plans. HSA1 and HC1 plans. Examples of Net Impacts on Different Households • At incomes of $100,000 or more, most households not After- tax, after-health expenses income is calculated from currently covered experience losses under both plans. wages, less any employee health insurance premium, federal taxes (employee FICA and income tax), state income tax, and • For currently covered households, at incomes above out of pocket health expenses. This amount represents how $100,000 nearly all have losses, and for smaller and younger much the individual or family has available to purchase all households losses occur at lower income levels. other goods this year, or to save for future purchases. Each set of examples for a specific individual or family type • Young workers at any income level are likely to experience at a specific current wage start with the current wage of a losses… worker who currently has employer-provided health insurance. Wages in each of the other examples in the set are then Revenue Impacts Due to Changes in Total Economic determined by the level of total compensation. Setting wages Activity in this way implicitly assumes that there are no cross-subsidies (Estimates of) fiscal impacts of the different plans in current or proposed employer or employee payments for associated with the impact of each plan on the total level of health insurance. Total compensation is the sum of wages, economic activity in the state…were provided by the Bureau employer FICA, employer health premium, and the employer of Business and Economic Research (BBER). Key assumptions payroll-based “contribution” or tax to the New Program under in estimating revenue impacts are: HSA1 or HC1 (the “contribution” under HSA1 is 4.4% and the tax under HC1 is 8.1%). Total compensation is assumed • Total personal income changes by the same amount of to be fixed for each wage level at the level for a worker who total economic output as estimated by the BBER; currently has employer-provided health insurance. Premiums under current law are typical for the age, • The elasticity of Personal Income Tax and Gross gender, and family characteristics of the specific worker. The Receipts Tax collections with respect to Personal Income employer is assumed to pay 80% of the current premium, is one – i.e. for each 1% change in personal income, and the employee 20%. The employee contribution under collections of each tax increase by 1%; HSA1 is assumed to be $2,000 per person (before any subsidy) covered under the New Program. The premium subsidy under HSA1 is 100% of the premium for individuals and families • The elasticity of other state and local tax collections below 100% of the federal poverty guideline for the family size, with Personal Income is 0.5 – i.e. for each 1% increase in a maximum premium of $420 per person per year (scaled by personal income, these revenues increase by 0.5%. income) for individuals and families between 100% and 200% of the federal poverty guideline for the family size, and a cap Potential administrative role for the Taxation and Revenue of 6% of income on the premium for individuals and families Department above 200% of the federal poverty guideline for the family Both versions of the Health Security Act and both versions size. It is assumed that employee premiums are paid through a of the Health Choices plan create large new state revenue section 125 plan under current law, and therefore receive both sources – on the order of $1.5 to $3.0 billion annually. These a payroll and an income tax preference. The New Program revenues would be paid by employers as a function of their under HSA1 (and HC1) are very unlikely to be considered an taxable payroll, thus they would resemble current payroll- employer plan under federal law, and therefore a section 125 based taxes. This suggests that the Taxation and Revenue plan could not be established by the employer for employee Department may be the appropriate agency to collect these premiums. revenues.

16 Capitol Report New Mexico / FALL 2007 Tax Policies Impact Health Care Discussion Continues

Out of pocket (OOPs) expenses for currently- insured workers are typical for the age, gender, and ACI, CONSERVATION VOTERS family characteristics of the specific worker. OOPs for HSA1 and HC1 are assumed to be 20% higher, ELEASE CORECARDS since the New Program would provide less coverage R S than a typical current employer plan. OOPs for the currently uninsured is set equal to the health spending The Conservation Voters of New Mexico (CVNM) and the Association of an employee with current employer-provided health of Commerce and Industry (ACI) have released evaluations of the 2007 insurance, assuming the load charge on the insurance legislature. is 12%… CVNM’s 2007 Legislative Scorecard is a full-color, 28-page report. The report said, most “votes represent overwhelming or unanimous agreement on non-controversial agreement on non-controversial issues or amendments. In many cases, CVNM selected measures that illustrate the key debates and fierce disagreement over conservation policy in the state; however, we also selected some votes that achieved near-unanimity to recognize significant legislative action on important conservation issues.” For CVNM, the highlight was passage of a series of clean energy bills. Most disappointment involved bills that failed to pass, especially the Land, Wildlife and Clean Energy Act (HB 433 / SB 309). A success was heading off the Administrative Accountability Act (HB685), “one of the more dangerous measures to appear in the 2007 session.” In the House, the “Conservation Champion” is Rep. Jeff Steinborn (D- Las Cruces) with a 95% score. Three senators, all Albuquerque Democrats, tied at 92%: Dede Feldman, Cisco McSorley and Gerald Ortiz y Pino. Rep, James Strickler (R-Farmington) scored zero percent. At 69%, Rep. Kathy McCoy of Cedar Crest had the highest Republican score. Find the report at www.cvnm.org. The 17th edition of ACI’s Focus Report retains the tabloid format. ACI said, “One can make a strong case that the 2007 legislative session was, overall, a friendly and positive session for business.” However, instead of “enacting comprehensive policy reforms,” ACI said, “the legislature continues to pass targeted tax relief measures aimed at soothing the squeakiest wheels in the business community.” Gov. Bill Richardson scored a perfect 100% from ACI for the 2007 session and has a cumulative 90% approval after five legislative sessions. The Focus Report covered 23 bills including ten that received a vote in both houses. For the 2007 session, 15 members of the house scored 100% for their votes. All were republicans. The low house scores went three democrats, Rep. Ken Martinez of Grants, 53%; Rep. Joseph Cervantes, Las Cruces, 54%; and Rep. Ben Lujan of Santa Fe, 58%. Lujan is Speaker of the House. Martinez is Majority Floor Leader. Two other senior democrats, Ed Sandoval of Albuquerque and Lucky Varela of Santa Fe tied Lujan at 58%. Eight senators scored 100%, including seven democrats. Sen. Michael Sanchez of Belen was the low democrat at 54%. Sen. Rod Adair of Roswell, at 69%, was the low republican. The Focus Report is posted at http://aci-nm.org. ACI describes itself as “the statewide, legislative advocate of business interests.”

Capitol Report New Mexico / FALL 2007 17 FALL 2007 Courts, Corrections and Justice Committee Legislative Interim Committees: Courts, I n t e r i m Lands Grants, Los Alamos and Water

During the interim between the 2007 click back and forth, for perhaps the first and 2008 sessions of the legislature, 25 time. Space constraints have pushed the committees operate. The tabulation, while complete list of committee members to true, oversimplifies. our Web site, wwwcapitolreportnmcom. Of the 23, two are permanent Only those committee work plans that are committees, three task forces, one relatively short appear here in entirety. For commission and one, the Legislative the longer plans, you are referred to our Council, that is a special case because it site. is, in effect, the board of directors for the The Legislative Finance Committee Legislative Council Service, the staff to (http://legis.state.nm.us/lcs/lfc/ the legislature. The Ethics Subcommittee lfcdefault.asp) and the Legislative is a subcommittee of the Legislation. Education Study Committee (http: The commission is the Capitol Buildings //legis.state.nm.us/lcs/lesc/ Planning Commission. lescdefault.asp), the two permanent Much more is available at the legislative committees, deserve separate treatment. Web site, starting with a list of the That will come. committees at http://legis.state.nm.us/ Established in 1957, the 16-member lcs/committees.asp. For information LFC prepares a complete state budget. beyond what is here and on the Legislative The publications and program evaluation Council’s site, call the Legislative Council reports on its Web site would bring joy (505-986-4600) and ask for the person to the policy wonks among us. The LFC providing staff support for the given added six evaluations to its Web site committee. during May of this year. Topics ranged Our report puts the scope of legislators’ from the State Personnel Office to the interim work in one place, in print without Southwest Border Prosecution Initiative. the computer’s need to the operator to

Capitol Buildings Planning Commission Arturo Jaramillo, Secretary, General Services Department, and Rep. Ben Lujan, Co-Chairs. A news release from the State Treasurer’s its authority to include Las Cruces. office explains the Commission. “Created Commission meetings are scheduled in in 1997 to study and plan for long-range May, August, September, and November of state government facility needs in Santa 2007.” Fe, the CBPC makes continual updates to The release was issued on the occasion of the master plan and reports annually to the state Treasurer James Lewis being added to Legislature. In 2002, the CBPC’s authority the commission membership. was extended to include Albuquerque in the As with other committees, the Legislative overall master plan. Council Service provides staff for the WORK PLANS

COMMITTEE In addition to naming the State Treasurer commission. to the Commission, this bill expands Fall 2007 Legislative Session / Committee Work Plans

Courts, Corrections and Justice Committee Sen. Cisco McSorley, Rep. Al Park, Co-Chairs Review operations of the judiciary, its projects, committees, Study water adjudication issues in a joint meeting with the specialized courts, budget and recommended legislation; Water and Natural Resources Committee; Examine payday Oversee and monitor issues relating to corrections, review and car title loans by attending the Economic and Rural findings of the Legislative Finance Committee’s performance Development Committee meeting on those issues; Review audit study and begin development of a long-term vision of status of the state crime laboratory; Review attorney general’s corrections policy that addresses incarceration, rehabilitation, and governor’s legislative proposals; Review recommendations diversion and reintegration of offenders; Examine issues from the Governor’s Ethics Reform Task Force; Address relating to criminal justice and public safety, including criminal related issues as appropriate; and Recommend legislation or laws and procedures, the public defender, district attorneys changes in existing law to the legislature. and law enforcement issues; Review sex offender registration For the complete work plan, see www,capitolreportnm.com. laws and the impact of the federal Adam Walsh Child Protection and Safety Act;

Economic and Rural Development Sen. Bernadette M. Sanchez, Chair oil and gas industries, process by which transmission lines are Evaluate the efficacy of the business incentives that have built). been enacted by the legislature in the past decade (i.e., tax Lack of a well-trained workforce is often cited as one of incentives) and identify commerce-friendly incentives for new the barriers to business recruitment. Thus, study the training business as well as sustain and cultivate existing business (i.e., and education programs offered by community colleges, solar energy technology, spaceport, chile farming and uranium technical institutions and universities to determine whether mining). and how those programs have met or are meeting the needs Evaluate the burdens on business (i.e., regulatory reform, of New Mexico’s industries and the industries the state is Oil Conservation Division of the Energy, Minerals and trying to attract. Natural Resources Department regulatory processes for the See www.capitolreportnm.com for complete work plan.

Ethics Subcommittee of the New Mexico Legislative Council Rep. W. Ken Martinez, Sen. Michael S. Sanchez, Co-Chairs The ethics subcommittee, a subcommittee of the legislative ethics legislation proposed during the 2007 sessions and, if council, was created during the 2007 interim to study issues needed, develop additional appropriate ethics legislation. and topics related to the reform of ethics laws in New The ethics subcommittee plans to consider the following Mexico. Unethical conduct at the federal, state and local levels issues and topics during the 2007 interim and, if needed, of government threaten public confidence in government. develop appropriate ethics legislation: implementation of State legislatures across the nation, including New Mexico, requirements imposed by New Mexico ethics laws enacted in have passed or are considering ethics reform measures. 2007; ethics legislation proposed during the 2007 legislative During the 2007 legislative and special sessions, the legislature and special sessions; draft legislation recommended by the addressed a number of ethics reform issues and passed governor’s task force on ethics reform; ethics laws and ethics the Gift Act, public financing of judicial elections and reform efforts in other states; and other ethics issues arising revisions to the Governmental Conduct Act. The legislative from problems specific to New Mexico that may require council created the ethics subcommittee to address any legislative action. implementation problems of the new ethics laws, examine

Funding Formula Study Task Force Rep. Mimi Stewart, Dick Pool, Co-chairs The function of the task force is to approve the request in final recommendations to the second session of the for proposals for a contractor to study the public school forty-eighth legislature. The American Institutes for funding formula and to select the contractor. The funding research is conducting the study. An overview is available at formula study is a three-year process that will culminate www.capitolreportnm.com.

Capitol Report New Mexico / FALL 2007 19 Fall 2007 Legislative Session / Committee Work Plans

Indian Affairs Committee Rep. James Roger Madalena, Sen. John Pinto, Co-chairs The Indian Affairs Committee has existed since 1989 as a Mountain Ute Tribe in Towaoc, Colorado, at seven chapters result of post-session New Mexico Legislative Council action of the Navajo Nation and at six of the pueblos. each year. In view of the fact that the committee’s work The Indian Affairs Committee proposes to explore and addresses issues relating principally to New Mexico’s Native discuss the following topics during the 2007 interim: Capital American population, the committee strives to conduct its outlay, including tracking the expenditure of allocated meetings in locations that are accessible to the state’s tribal funds, coordination with the Navajo Nation, certification of members and their leaders. The committee views its meetings chapters of the Navajo Nation and implementation of the as an essential way of relating the work of the legislature to Tribal Infrastructure Act. See www.capitolreportnm.com for this segment of its constituency. This year, in addition to complete work plan. meetings in Santa Fe, the committee plans to meet at the Ute

PARKING GARAGE SET FOR WEST OF CAPITOL

This photograph of the parking lot east of the capitol was taken January 15, 2007, the day before the 2007 session opened. Note the piles of snow. Somehow they could not be removed before the session started. Note also the vehicles parked on the snow. Leaving the snow both reduced the number of parking spaces and made it more dangerous for pedestrians. But then parking during the session has always been something of an art form.

State capitol parking got even more construction, reports the General Services the state capitol.” It sought evaluation of interesting this year with the record snows Department. “existing studies of public parking in the that hit just before the 2007 session Bids have been opened. The “winner” area of the state capitol for the purpose of started. Piled snow ate parking spots. doesn’t win until successful completion of presenting specific proposals by December Permit-only parking and the State Police negotiations with the state, says General 31, 2003 to increase the availability of ate more spots. Services. The negotiations were underway parking in the area.” Change is coming in time for the 2009 as of Capitol Report’s deadline. session. A new parking garage will be Parking at the capitol during the constructed on an existing parking lot a legislative session has been an increasingly half-block west of the capitol, across Don complex adventure for some years. Gaspar Ave. and behind the houses along During the 2003 session, Sen. Phil Don Gaspar. The houses will stay. Griego successfully sponsored Senate Joint The new facility will have at least 400 Memorial 60. spaces and perhaps 600, depending on the The memorial observed that “during cost, according to the state’s request for legislative sessions the parking available proposal. About 125 of the existing 190 in the vicinity of the state capitol is spaces will disappear in the construction, woefully inadequate for people wishing to leaving a net gain of from 275 to 475 participate in the process of government, spaces. observe their citizen-legislature at work or Around $13 million has been allocated for simply enjoy the various aspects of visiting

20 Capitol Report New Mexico / FALL 2007 Fall 2007 Legislative Session / Committee Work Plans

Investments and Pensions Oversight Committee Sen. John Arthur Smith, Chair During the 2007 interim: The committee will continue its The committee will receive testimony on the actuarial examination of the investment and financial management condition of the retirement funds and the retiree health care practices of the state investment council, the state treasurer, authority (RHCA) and review recommendations from the the public employees retirement association and the House Bill 728 RHCA study group on how to improve the educational retirement board. short-term and long-term conditions of the retiree health The committee will review reporting procedures and care fund. benchmarks and alternative investment opportunities, The committee will analyze and provide recommendations including economically targeted investments, to ensure the on any requests to change retirement benefits. highest rate of return on investment of public funds.

Information Technology and Telecommunications Oversight Committee Rep. Debbie A. Rodella, Chair During the 2007 interim: information technology initiatives, including SHARE, E-911 The committee will oversee the transition to and ongoing and projects such as Wire New Mexico and the geospatial operations of the Department of Information Technology. initiatives. The committee will examine telecommunications as an The committee will receive status updates from the information technology issue. Legislative Finance Committee, Information Technology The committee will review agency information technology Commission and the Department of Information plans as necessary, including the executive, judicial and Technology. legislative branches of government. The committee may make recommendations to the LFC The committee will examine the status of enterprise-wide concerning agency information technology budgets.

Legislative Committee on Compacts Sen. Richard C. Martinez, Chair. Rep. Daniel P. Silva, Vice Chair. The committee is active when new gaming compacts are being negotiated with tribes. As early August, no meetings were planned.

Interim Legislative Ethics Committee Sen. Linda M. Lopez, Rep.Nick L. Salazar, Co-Chairs

The Interim Legislative Ethics Committee does not have only meets when it has been asked for an advisory opinion or a traditional Work plan. Pursuant to statute, the committee to investigate a complaint against a member.

Legislative Health and Human Services Committee Sen. Dede Feldman, Chair, Rep. Danice Picraux, Vice Chair The primary and overarching charge of the Legislative The LHHS plans to: Use outside experts and guest Health and Human Services Committee (LHHS) is to speakers to provide a perspective on Mathematica’s findings review and analyze the findings of the study conducted by and other state efforts to reform health care; Consider how Mathematica Policy Research, Inc., (Mathematica) on behalf to incorporate the findings of Mathematica with ongoing of the Health Coverage for New Mexicans Committee efforts to address chronic disease; cost reduction or control; (HCNMC) regarding the quantitative and comparative analysis individual responsibility; health care workforce shortages; for extending health care coverage in New Mexico. The clinics, hospitals and other facilities; telehealth and other committee will consider the findings in the broader context of health information technology initiatives; and other health overall health care reform and make recommendations for the care reform efforts. 2008 regular session. See www.capitolreportnm.com for the complete work plan.

Capitol Report New Mexico / FALL 2007 21 Fall 2007 Legislative Session / Committee Work Plans

Task Force on Legislative Structure and Process: Legislative Council Charge May 23, 2006 with developing a series of recommendations to help the Like many other institutions in modern society, the New legislature conduct its work and perform its duties in a more Mexico Legislature is faced with the problem, especially effective and efficient manner. The task force must recognize during the sessions, of having an inordinate amount of work that the New Mexico legislature is a citizen-legislature and the to do and a limited amount of time in which to accomplish special role of the legislature as the body that sets the public that work effectively and efficiently. Thus, the New Mexico policies of this state, creates the entities and programs to Legislature must find ways to delineate its priorities and focus carry out those policies and allocates the requisite funds to its institutional attention on those priorities. ensure that the entities and programs function effectively. The Legislative Council charges this special task force, See www.capitolreportnm.com for the complete charge to the Task Force on Legislative Structure and Process, the Task Force.

Land Grant Committee Rep. Miguel P. Garcia, Chair, Sen. Richard C. Martinez, Vice Chair The land grant committee plans to consider the following Hear the attorney general’s response to the 2004 GAO report issues and topics: To address long-standing grievances related on community land grants; Explore the possibility of the to state and federal government treatment of Spanish and purchase of bureau of land management property by the state Mexican land grants, the committee should review operation for eventual return to community land grants; and request the of the Guadalupe Hidalgo treaty division of the office of transfer of lands owned by the department of game and fish the attorney general and request funding of the division as to community land grants that formerly owned those lands. part of the base budget of the office of the attorney general; See www.capitolreportnm.com for the complete work plan.

Los Alamos National Laboratory Oversight Committee Senator Phil Griego, Rep. Roberto “Bobby” Gonzales, Co-chairs The committee will focus on: The effect of Los Alamos environmental compliance record; Security issues; and National Laboratory (LANL) layoffs, budget reductions or LANL-related technology transfer and business spinoff realignment on the economy in the affected areas; LANL’s programs.

Brownstein Ad Mortgage Finance Authority Act Oversight Committee Sen. Nancy Rodriguez, Chair, Rep. Daniel P. Silva, Vice Chair

The Mortgage Finance Authority Act oversight committee was created pursuant to the provisions of Section 58-18-5 NMSA 1978, which provides in part: The [mortgage finance authority] shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the Mortgage Finance Authority Act, including but without limiting the generality of the foregoing, the power: subject to any agreement with bondholders and noteholders, to make, alter or repeal, subject to prior approval by the Mortgage Finance Authority Act oversight committee, hereby created, to be composed of four members appointed by the president pro tempore of the senate and four members appointed by the speaker of the house of representatives, such rules and regulations with respect to its operations, properties and facilities as are necessary to carry out its functions and duties in the administration of the Mortgage Finance Authority Act; . . . See www.capitolreportnm.com for the complete work plan.

22 Capitol Report New Mexico / FALL 2007 Fall 2007 Legislative Session / Committee Work Plans

New Mexico Finance Authority Oversight Committee

Rep. Daniel P. Silva, Chair, Sen. Mary Kay Papen, Vice Chair

The New Mexico finance authority (NMFA) oversight and financing and take testimony from state and local committee was created with the enactment of New Mexico officials on state and local capital needs; provide advice Finance Authority Act, Sections 6-21-1 through 6-21-31 and assistance to the authorities and cooperate with state NMSA 1978, to oversee the operations of the finance and local governments on planning and setting priorities authority. In addition, the legislature assigned oversight of for and financing of state, local, border and port-of-entry the border authority and implementation of the Border capital projects; review and approve rules proposed by the Development Act, Sections 58-27-1 through 58-27-26 NMSA authorities; and report its recommendations and legislation 1978, to the committee. to the governor and legislature on or before December 15 of The committee is statutorily required to monitor and each year. oversee the operations of the two authorities; monitor For the complete work plan, see and oversee state and local government capital planning www.capitolreportnm.com

Public School Capital Outlay Oversight Task Force Rep. Rick Miera, Co-Chair, Sen. Cynthia Nava, Co-Chair Pursuant to statute, the task force will focus on: up to the statewide adequacy standards developed pursuant Monitoring the progress and effectiveness of programs to provisions in the Public School Capital Outlay Act; and administered pursuant to the Public School Capital Outlay Overseeing the work of the public school capital outlay Act and the Public School Capital Improvements Act; council and the public school facilities authority, particularly Monitoring the existing permanent revenue streams to ensure as they continue to implement the statewide process for that they remain adequate, long-term funding sources for making grant awards. See www.capitolreportnm.com for the public school capital outlay projects; Monitoring the overall complete work plan. progress of continuing to bring all public school facilities

Radioactive and Hazardous Materials Committee Rep. John A. Heaton, Chair During the 2007 interim, the Radioactive and Hazardous to the environment and public health; review developing Materials Committee will gather information and hear issues related to NMED’s intention to assume primacy over testimony on the areas of focus adopted by the Legislative the federal Environmental Protection Agency’s national Council for the committee as well as other environmental pollutant discharge elimination system; and, in coordination issues. With regard to the areas of focus, the committee with the Los Alamos National Laboratory (LANL) Oversight plans to examine uranium mining in New Mexico and the Committee, monitor implementation of the federal consent development of nuclear energy, including the potential order on environmental remediation and cleanup at LANL. benefits of nuclear energy as a clean energy alternative and For the complete work plan, see the potential harm from waste produced by uranium mining www.capitolreportnm.com.

Revenue Stabilization and Tax Policy Sen. Timothy Z. Jennings, Chair, Rep. Edward C. Sandoval, Vice Chair.

The revenue stabilization and tax policy committee is then examine the fairness, equity and effectiveness of the tax a statutorily created joint interim legislative committee. structure, including the balance of revenue collections from Pursuant to Section 2-16-3 NMSA 1978, the committee is property taxes, personal income taxes, corporate income directed to “examine the statutes, constitutional provisions, taxes and gross receipts taxes; Become familiar with revenue regulations and court decisions governing revenue projections and any anticipated or observed trends occurring stabilization and tax policy in New Mexico and recommend in the revenue outlook for the upcoming year. legislation or changes if any are found to be necessary . . . “ For the complete work plan, see www.capitolreportnm.com. In the 2007 interim, the committee will: Review the work and recommendations of the blue ribbon tax task force and

Capitol Report New Mexico / FALL 2007 23 Fall 2007 Legislative Session / Committee Work Plans

Tobacco Settlement Revenue Oversight Rep. Gail Chasey, Sen. Mary Jane M. Garcia, Co-Chairs The tobacco settlement revenue oversight committee will funds through committee oversight and evaluation of those continue its oversight duties for the programs that receive programs recommended by the committee and funded by funding through the tobacco settlement program fund. The the legislature; meet, hear testimony regarding tobacco committee will receive testimony regarding the balances settlement-related issues and prepare recommendations in and projected revenues for both the tobacco settlement of program funding levels for fiscal year 2009, based on program fund and the tobacco settlement permanent fund. the committee’s program evaluation process; and make During the 2007 interim, the committee will: monitor the recommendations as necessary for changes in legislation status of the revenue and reserve for the tobacco settlement relating to and regarding use of the tobacco settlement permanent fund and the use of tobacco settlement program revenue.

Water and Natural Resources Committee Sen. Phil A. Griego, Chair. Rep. Andy Nunez, Vice Chair

The committee will focus on: Water conservation policy; and pending litigation; Eater availability for proposed and Coordination of regional water plans and status of planning anticipated land development; Responsibilities and oversight for the Gila River; Agency oversight of water project of the Office of the State Engineer, the Interstate Stream development planning and funding; Status of water rights Commission and the state land commissioner; and “Clean adjudication and the relationship to active water resource forest” initiatives and the effects of the national forests’ management and water transfers; Domestic well regulation work plans on water quality and quantity and elk population and permitting policy, including land grant communal rights and the ranching economy.

Welfare Reform Oversight Committee Sen. Linda M. Lopez, Chair, Rep. Luciano “Lucky” Varela, Vice Chair

The Legislative Council has requested that this committee and child care, particularly in rural areas. The council has ensure that welfare policies in place in New Mexico focus asked the committee to require a detailed action plan by the on sustained employment rather than one-time hiring new Workforce Solutions Department to ensure that the and pay careful attention to implementation of programs department is able to meet its performance measures. organized under the new Workforce Solutions Department. Overall, the committee will make this a “results” year. It In addition, the council has reaffirmed the committee’s will ask presenters to evaluate program success and failure role in identifying and resolving problems, where possible, and will even ask whether welfare “reform” itself is a success. arising from barriers to employment. Such barriers include For the complete work plan, see www.capitolreportnm.com. training, educational needs and a lack of transportation

STRESS PRODUCES LIBERALS; SECURITY PRODUCES CONSERVATIVES Of 123 University of New Mexico students participating issue of “Evolution and Human Behavior.” The Economist, in a study of political persuasion and family situation, a news magazine with a libertarian tilt based in London, those classified as liberals had stressful childhoods and had a story in the May 17 issue. weaker parental attachments. Conservatives reported The students completed a questionnaire about political secure childhoods, strong attachments to one or both beliefs, personality and childhood. Thornhill and Fincher parents, and low stress. compared the survey results with a standard personality UNM professors Randy Thornhill and Corey Fincher did scale measuring whether one is a conservative or liberal. the study. Early environment is responsible for tending With tongue firmly in cheek, The Economist closed by one political way or another, but the move toward a given noting recent research at the University of California, direction comes from a genetic switch, they say. Berkeley, that decided insecure kids were more likely to The stress is the crucial environmental factor tilting become conservatives with confident kids tending liberal. genetically-based proclivities one way or the other. Thornhill and Fincher published their paper was in the July

24 Capitol Report New Mexico / FALL 2007 Tom Horan: Pilot and Lobbyist

By JACK SWICKARD Co-Publisher Tom Horan says one of the biggest surprises of his life was retiring as a full colonel. As a lobbyist and military officer, Horan operates low key . . . but effectively. He represents 22 clients, ranging from the New Mexico Press Association to the Pueblo of Sandia. Horan began his lobbying career after serving as a combat helicopter pilot in Vietnam, graduating from the University of New Mexico Law School, and then being elected to the state House of Representatives in the mid-1970s. While attending the University of San Francisco, Horan received his private pilots’ license through the ROTC flight- training program. Upon graduation from the university, he was commissioned From Left: Tom Horan and Tom Baca. a second lieutenant and in June 1967 the 1st Cavalry Division. They were all Horan won re-election in 1976 he was assigned to the 2nd Armored dead by June 15.” and later resigned the seat to begin Division at Fort Hood, Texas. Horan was assigned to an Air Cavalry lobbying. His first client was the City of In the spring of 1968, his military unit — C Troop, 3/17 Cavalry at Dian Albuquerque. career moved in another direction when near Saigon. His job was to fly the small, His father, longtime Albuquerque City an old school chum flew an Army egg-shaped, OH-6 Light Observation Attorney Frank Horan, was appointed helicopter to Fort Hood’s Robert Gray Helicopters (LOH) dubbed “Loaches.” to the District 22 seat. Frank Horan ran Army Airfield and gave Horan a ride. With an observer and a gunner on board, successfully for election twice after that. Tom Baca was an instructor pilot at the Horan’s mission was to fly low and slow, When Tom Horan began lobbying, Army Primary Helicopter Training Center trying to attract enemy fire so the Huey “I was one of the first to go out as an at Fort Wolters, near Mineral Wells, Texas. Cobra gunships flying overhead could individual lobbyist.” The previous year, Baca had returned dive down and make a kill. Though he had joined the Army from Vietnam where he flew combat “We had Loaches going down all the Reserve to support his family during law assaults, medical evacuations, resupply time,” Horan said. During one 3-week school, Horan remained in the Reserve missions, and VIPs for a year. period, he had three of his helicopters go and later the New Mexico National Baca, who currently serves as state down with fuel governor failures. Guard until 1992, when he retired as a aviation officer, and his twin brother, With 350 hours flying scout missions, colonel. While on active, Reserve and former Albuquerque Mayor Jim Baca, had Horan was named executive officer of National Guard duty, he accumulated attended school with Horan beginning in the headquarters troop. 4,000 hours flying military aircraft. the first grade. After returning from Vietnam in 1970, Horan views himself as an unlikely full Horan remembers his first time in a he was a UH-1 Huey instructor pilot at colonel, which he attributes mainly to his helicopter that day. the Army Aviator School at Fort Rucker, love of flying. “It made my eyes grow really big.” Ala., until he left the Army in January “I didn’t like wearing hats,” he said. Though Horan already had orders for 1972. “I’m never on time,” he repeated several Army flight school, he was required to Horan received a master’s degree in times. take an orientation flight. 1974 and was accepted into the UNM His easygoing approach has proved In June 1968, he was a student pilot Law School. effective in the world of lobbying, where at Fort Wolters. The following February While a law student, Horan was elected he considers himself nonpartisan. he graduated from flight training, and in to the state Legislature from House Over the years, Horan said he has April was on his way to Vietnam. District 22 in Albuquerque. seen a big change in how the Legislature When he and classmates arrived in He recalls spending $625 campaigning operates. “There’s more staff and more Vietnam, “three buddies volunteered for for the seat that year. interim committees.”

Capitol Report New Mexico / FALL 2007 25 in Vietnam flying with the 118th, but had been transferred to a VIP flight detachment before I joined the company. We had a memorable meeting on Easter Sunday 1967 at a Special Forces base called Cau Song Be (also known as Chi Linh). Tom Baca had been flying the Special Forces chaplain and I was piloting the paymaster from camp to camp. During the Easter truce, a regiment of North Vietnamese soldiers had ambushed a company of South Vietnamese Regional Forces and their U.S. advisors. Tom Baca and I volunteered to extract them. During five flights into the ambush site, we were able to extract 88 soldiers and advisors, plus another “55 dead and wounded.” Tom completed his Vietnam tour two weeks later. We both were awarded From Left: Sen. Stuart Ingle and Tom Horan. the Distinguished Flying Cross for that More bills — “30-40 percent” — now Portales, where we were met at the airport mission. are killed in committee, Horan said. by State Sen. Stuart Ingle, Senate Minority Leader. Stuart had never flown in a Capitol Report Co-publisher Harold A big, recent development is there is helicopter before, so we diverted a little Morgan well remembers Horan’s 1974 “more money for appropriations with oil out of our way to give him his first ride. legislative campaign. Harold’s brother, and gas revenues up,” he said. I first met Tom Horan when he came Tom Morgan, was Horan’s Republican Horan plans to transition his son, to The Albuquerque Tribune to announce opponent. Larry, into the lobbying business after he he was running for state representative. I Harold recalled he and his brother graduates from UNM Law School. Larry was city editor and had served in Vietnam gained considerable respect for Horan Horan served 10 years as an Albuquerque two years before Tom, flying UH-1D during the campaign. They have remained policeman. Hueys with the 118th Assault Helicopter friends ever since. Company. ***** When I was assigned to the company, the other pilots were talking about “the In June, Tom Horan and I flew other guy from Albuquerque.” Tom Baca a Schweitzer 300 helicopter from had spent most of his first tour Albuquerque to Shawnee, Okla., just east of Oklahoma City. On the way to Shawnee, we landed in Bernalillo GOP to Dump

� � Deadbeat Dues Dudes � ��� For some time, dues from central committee members have � provided much of the money needed to operate the Bernalillo � � County Republican Party. For about the same amount of time, � the Bernalillo GOP has struggled with the problem of what to do about those who don’t pay. � The dues are $10 per month, payable quarterly. � �� � Now the executive committee has adopted rules that allow a member’s name to be “submitted to the executive committee � for purging” after the member is past due for a full quarter � � ���������������������� and doesn’t catch up. For those members squeezed on cash but � ���������� � �� ����������� not time, a minimum of eight hours of volunteer service per � � � ��������� ������������� month can gain a waiver of the $10 dues. � ������������� � ������������� � The volunteer service works off the dues at $1.25 per hour. ����������������������������������������������� For the Bernalillo County GOP, it seems central committee ��������������������������������������������������� members who want to play must pay.

26 Capitol Report New Mexico / FALL 2007 Triton / Progress A Partnership of Media Professionals NEW MEXICO In the Next Issue… • Complete production of printed communications / marketing materials, including distribution via Internet JANUARY 2008 • Brochures, magazines, catalogues, annual reports, newsletters, including research and writing of editorial sections, photography, design and layout Legislative Preview: • Sales for advertiser-supported magazines including sales for associated web site The Agendas • Web site design and maintenance Healthcare Proposals • Economic Analysis: Portray a local economy such as Curry County through words, pictures, design and statistics • Public Relations Consulting Sales Close: November 30 • Event Planning and Staging

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