Friday, April 25, 2014

Texas Payback

Is Governor Susana Martinez paying back Texas for her great fundraising there over the last five years?  One would think so if one listens to the rumor mill and follows the money.

I got a call yesterday from a friend who sat in on  some high level economic discussions about Texas and New Mexico economies.  This person is an employee in Texas.  It was stated that the Governor is sending tens of millions of dollars into the Santa Teresa area of Dona Ana County, as did Governor Richardson, to help develop business activities along the border of Mexico.  Think about that new giant rail switching facility by Burlington Northern Santa Fe railway.  As a result many new plants will be built, much like the Foxconn plant  in Santa Teresa.

The discussions were concentrating on the fact that for every ten jobs created in New Mexico around Santa Teresa, that six of them would be filled by Texas residents from the El Paso area.  It was stated that if one were to go into the parking lots of the new facilities that a simple count of license plates on employees cars would prove it.

This economic development isn't a negative thing.  But there are deep financial implications for this poor state.  Is Texas helping with infrastructure development or is all the burden on New Mexico?  When a Texas employee leaves work and pays property tax and sales tax back in Texas, how does that affect New Mexico?  Should there be some sort of agreement worked out for a sharing of benefits and tax breaks for the corporations that locate in Santa Teresa?  Should New Mexico shoulder all of the industrial revenue bonds or should Susana's home state help with that?  Of course, many of our state residents work in the El Paso region too, but most of that business infrastructure and development took place under the old rules where you didn't have to offer outlandish incentives to attract business.

These are questions that need some thought on the part of the Legislature.  

6 comments:

Vicki said...

Excellent points you raise here. We hear a lot about this new positive economic activity, but it does not necessarily follow that New Mexico gets any benefit. I hope the democratic candidates for governor talk in an informed manner about the implications for the NM economy of the Santa Teresa development.

Latina from Nuevo Mexico said...

My greatest fear with this Governor isn't so much the lack of respect/empathy or concern for New Mexicans but that this governor will start giving Texas our water. At the end of the day, our water is the only real asset we have and we already have to give water to El Paso thru court order. I highly suspect that Susan will start negotiating with TX (if she hasn't already) to increase the many millions of gallons of water we already send.

Anonymous said...

Big follow up on KRQE Friday April 25 at 10 pm regarding Ray Schultz Taser and the multimillion dollar city contract. I just saw Matt Grubs on their morning show and I think this follow up story is going to be BIG. They got something (more emails?) on Schultz and Taser.

Maybe we will finally get an investigation into the pay to play.

I would sure like to see Michelle Lujan-Grisham address this as I am sure federal funds were used for this Taser APD Schultz stuff.

Anonymous said...

Saw Texas Governor Rick Perry on national news last night talking about future plans and another possible run for President. He claimed his biggest priority it to help Republican Governors like Susana Martinez get re-elected. No doubt he wants Susana to feel indebted to him and Texas.

Bubba Muntzer said...

Excellent.

I wonder, too, if the legislature could give New Mexico residents some advantages in getting those jobs? Education and training come to my mind, but there may be some other ways.

Anonymous said...

If Tazer contract and purchase was with Federal Grant money, the grant application and final funding would have to also be signed by Chief Administrative Officer Rob Perry. If so, did Perry have knowledge that Schultz "greased" the approval? Did Perry know if Schultz was going to work for Tazer? The absolute stupid, deer in the headlights look on Perry's face a few days ago when asked about the $2 million Tazer contract by Ch 13 was priceless. And Berry is paying this fool $180,000 a year, making him the highest paid city employee in city history!!! Rob Perry said he needed the extra money to help pay his law school student loans.