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New Report Shows How To Boost New Mexico’s Economy

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New Report Shows How To Boost New Mexico’s Economy


New Mexico is not known as an economic powerhouse. Despite being one of the sunniest states in the country, its population has hardly grown over the last decade. Meanwhile, the populations of its biggest neighbors—Arizona, Texas, and Colorado—have grown rapidly. Economic growth in the region follows a similar pattern, with New Mexico’s growth trailing its neighbors. In a new report, author’s Matthew Mitchell and Paul Gessing link New Mexico’s weak economy to its lack of economic freedom.

New Mexico is the fourth sunniest state in the country. It has cooler summers than Phoenix and warmer winters than Denver. Research shows that people are attracted to places with nice weather, yet New Mexico’s population only grew by 1% from 2013 to 2022. Meanwhile, Arizona’s grew by 12%, Colorado’s by 11%, and Texas’s by 14%. Employment growth, real GDP growth, and income growth all follow the same pattern (see figure below), with New Mexico trailing its neighbors over this period.

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New Mexico’s favorable weather should be a plus, yet there is something holding the state back. In their new report, Mitchell and Gessing make a convincing case that a lack of economic freedom is keeping New Mexico from experiencing the same success as its neighbors.

Economic freedom is the degree to which individuals are allowed to make their own economic choices. Choices about where to work and on what terms, and how to invest their time and money. Places that allow more economic decisions to made by individuals have more economic freedom.

Dozens of studies show that places with more economic freedom, whether it be countries, states, or cities, tend to have better economic outcomes, including more job growth, higher incomes, less poverty, and more business creation. New Hampshire is the freest state according to the latest edition of the Fraser Institute’s Economic Freedom of North America index, while New Mexico ranks 47th, well behind Arizona (32), Colorado (14), and Texas (5).

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Even worse, New Mexico is the only state where economic freedom declined over the last 40 years. Yes, you read that right—in every state but New Mexico, economic freedom increased from 1981 to 2022 (the latest available data).

New Mexico’s lack of economic freedom is contributing to its poor economic performance. As the report notes, if New Mexico increased economic freedom by 10% to a level like that of Maine (which is not that free at 38th overall) its per capita GDP could increase by as much as 5%, or about $10,000 for a family of four. This is a non-trivial increase in output that requires relatively modest policy changes.

A state’s overall economic freedom score is composed of scores from three areas—government spending, taxation, and labor market regulation. New Mexico ranks 49th in government spending, 36th in taxation, and 49th in labor market regulation. Each of these scores is the lowest in the Southwest, as shown in the figure below.

One of the first things New Mexico should do to increase economic freedom is lower its taxes. It has the highest top marginal income tax rate in the region at 5.9%, more than double Arizona’s 2.5% flat rate. Texas has no personal income tax. It also has the region’s highest corporate income tax rate, also at 5.9%. Worse, its corporate income tax is not indexed to inflation. This means more and more companies will pay the higher rate as inflation pushes their income over the minimum threshold, despite their profits not being higher when inflation is accounted for.

New Mexico policymakers should lower their top personal and corporate income tax rates to make them more competitive with their neighbors. A lower, flat rate like Arizona’s 2.5% rate would incentivize work and investment. New Mexico can also afford a lower rate since the state’s oil and gas industry is bringing in billions of dollars in tax revenue each year. The report notes that New Mexico has had a run of $3.5 billion surpluses in recent years.

Policymakers in New Mexico should also make it easier for people to work. Mitchell and Gessing point out that New Mexico has some of the most onerous occupational licensing regulations in the country. The state places a particularly large burden on occupations that often serve as an entry into the labor market. For example, HVAC contractors and sheet metal workers are required to spend four years in training before they can obtain a license. Drywall installers must train for three years before they can get a license. Barriers like these make it difficult for younger and less experienced workers to earn a living and support a family. Reducing these and other unnecessary licensing regulations would improve New Mexico’s economic freedom score and increase opportunity for the state’s residents.

New Mexico’s economy is lagging its neighbors and has for years, but it does not have to be this way. New Mexico policymakers can improve the state’s economy by lowering tax rates and reducing barriers to work. Such changes would increase economic freedom in New Mexico, and increasing economic freedom is a proven path to prosperity.



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New Mexico

Complicated legacy: Former students reflect on St. Catherine Indian School

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Complicated legacy: Former students reflect on St. Catherine Indian School


Walter Dasheno’s mind drifted toward the distant past as he studied the small black-and-white photograph, with 11 serious-looking Native American teens staring back at him.

Dasheno still knows the names of the other 1965 graduates of St. Catherine Indian School — boys in caps and gowns from New Mexico pueblos and the Navajo Nation, their lives knitted together during their years at the Catholic boarding school in Santa Fe.







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Walter Dasheno, a graduate of St. Catherine Indian School and former Santa Clara Pueblo governor, smiles while looking at a small black-and-white photograph of his former classmates in the mid-1960s at his home at the pueblo on Thursday.

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Walter Dasheno holds up a photo of himself and fellow high school graduates from St. Catherine Indian School’s Class of 1965 — teen boys from the pueblos of New Mexico and the Navajo Nation dressed in their caps and gowns. He recalled memories from his times at the Catholic boarding school in Santa Fe.


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Competing views of St. Kate’s







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City firefighters battled for hours July 2 at the historic campus of the former St. Catherine Indian School.

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Archbishop Byrne and clergy meeting with Taos dancers at St. Catherine Indian School, circa 1950. 

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Cochiti Pueblo pupils at chapel, St. Catherine School.

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Haaland recalls family ties







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Details at the historic St. Catherine Indian School in 2021 include a small cemetery where clergy were buried and murals created by some of the students.



‘Woven together by tradition’







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A photo of Walter Dasheno and a female student wearing traditional clothing as they carried in the chalice and unconsecrated wine during a special Mass at St. Catherine Indian School in the mid-1960s.

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A small figure of St. Catherine with a young Native American student alongside a Hopi kachina on display at Walter Dasheno’s home in Santa Clara Pueblo on Thursday. Dasheno, a former Santa Clara Pueblo governor, graduated from St. Catherine Indian School in 1965.


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Bystanders watch July 2 as firefighters battle the blaze at the historic St. Catherine Indian School.









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The last graduating class of St. Catherine Indian School celebrates outside St. Francis Cathedral in May 1998.

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New Mexico

New Mexico AG Wants to Know Where Epstein Records Are

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New Mexico AG Wants to Know Where Epstein Records Are



New Mexico’s top prosecutor says federal officials are slow-walking key Jeffrey Epstein files, and it may be costing the state its chance to build a case. In a sharply worded June 30 letter released on Thursday, Attorney General Raul Torrez accused the Justice Department of blocking access to unredacted records tied to Epstein’s Zorro Ranch, warning that evidence degrades and witnesses disappear with each passing day, reports CNN. The agency’s refusal to release the files “is causing real and escalating harm,” Torrez wrote in a letter last week to acting US Attorney General Todd Blanche, per the New York Times.


The state reopened its criminal probe in February after the federal release of millions of Epstein-related documents, including an unverified tip about two foreign girls allegedly buried near the property at the behest of Epstein and a “Madam G.” The DOJ says it responded to New Mexico last month and stands ready to assist if the state uncovers possible federal crimes, notes Reuters.

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Torrez counters that his office has made six attempts since February to secure documents or at least an in-person meeting, calling the more than 130-day delay “unreasonable,” per CNN. The dispute unfolds as lawmakers condemn heavy redactions in the Epstein files and an internal DOJ watchdog reviews the process. Zorro Ranch, near Santa Fe, has been named by multiple survivors, including Chauntae Davies and the late Virginia Giuffre, as a site of sexual abuse.





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NM Delegation Demands Answers On Reports Of DEA Declining To Seize Massive Fentanyl Shipments, Calls For Immediate Reforms

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NM Delegation Demands Answers On Reports Of DEA Declining To Seize Massive Fentanyl Shipments, Calls For Immediate Reforms


U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.), and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) sent a letter demanding answers from U.S. Drug Enforcement Administration (DEA) Administrator Terrance Cole on why the DEA allowed large quantities of fentanyl to circulate unseized in New Mexico communities.

Trafficking of fentanyl and other opioids poses one of the most severe — and often deadly — public health threats facing New Mexico and the nation. Illicit fentanyl, a Schedule I controlled substance, is an exceptionally potent synthetic opioid that can be fatal even in extremely small quantities. Illicitly manufactured fentanyl has been the primary driver of the overdose epidemic in the U.S.

Whistleblower complaints allege that Albuquerque-based DEA agents declined to interdict at least 1.8 million fentanyl pills between 2023 and 2025 in hopes of taking down a larger supply chain.

“We unequivocally assert that allowing fentanyl to go unseized creates an unconscionable risk to New Mexicans,” the lawmakers wrote to DEA Administrator Cole.

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In 2017, the U.S. Department of Justice (DOJ) and DEA established “Fentanyl Protocols” directing agents to “seize or otherwise prevent the distribution” of fentanyl “as soon as practicable” to protect public safety. In 2024, the DOJ revised those protocols to provide law enforcement with greater discretion, allowing agents to weigh public safety risks against “the benefits to be achieved through preserving the investigation.” A 2024 DOJ Office of Professional Responsibility (OPR) investigative summary further states that the U.S. Attorney’s Office acted reasonably in allowing certain drugs to remain unseized and concluded that doing so posed no “specific danger to public health and safety.”

“We adamantly disagree with this internal assessment, and we urge your agency to immediately revert fentanyl protocols to the 2017 standard of seize or otherwise prevent the distribution of fentanyl as soon as practicable,” the lawmakers underscored. “We will be taking all necessary actions in Congress to better ensure the safety of New Mexicans and expect that you will stand with us in those efforts.”

The lawmakers concluded their letter by demanding responses to a request for written documentation on all instances where the DEA declined to interdict fentanyl, and the following questions on the DEA’s fentanyl interdiction policies, investigative protocols, and enforcement practices:

  1. Provide comprehensive written documentation of all individual instances, occurring in New Mexico since January 2017, including dates, locations and amount of suspected contraband, during which DEA has declined to interdict fentanyl in the course of a Title III or electronic surveillance investigation. Please also indicate the extent to which fentanyl involved in these investigations was ultimately recovered.
  1. What are DEA’s current internal directives and guidelines dictating how federal agents manage active drug-trafficking investigations involving fentanyl? Specifically, what protocols instruct agents on whether to seize a shipment of fentanyl immediately or allow it to pass temporarily under surveillance?
  1. What internal DOJ or DEA documentation determines, or may supersede, official fentanyl interdiction and operational protocols both as a matter of agency-wide policy and also with regards to individual drug-trafficking investigations? How are these changes to operational protocols communicated to agents in the field? Please provide all such documentation since January 2017.
  1. Under what circumstances are DEA agents permitted to exercise discretion, abandoning any presumption of interdiction, allowing a fentanyl transaction to proceed without immediate seizure? What safeguards are in place to protect communities when fentanyl shipments are allowed to continue as part of an ongoing investigation?
  1. Must agents possess a guaranteed, continuous ability to seize the substance immediately if the operational environment changes? How is the likelihood of losing operational surveillance, and the potential number of lives impacted if the substance enters the illicit supply chain, measured against the benefits of a successful investigation?
  1. What circumstances mandate when fentanyl must be safely interdicted, or swapped for a controlled delivery with a substituted substance, before it is allowed to advance within the supply chain? What levels of approval within your command structure are required to bypass immediate interdiction?
  1. What other tactics such as controlled deliveries, enhanced surveillance, contraband substitution are available to your agency to facilitate long-term, high-level investigations without an unacceptable risk to public safety? What resources can we provide to make these tactics of more common use to your agency?
  1. What is the reassignment status of DEA personnel based in New Mexico to out-of-state enforcement efforts since January 2025? During the same period, have DEA agents in New Mexico maintained their primary focus on drug-trafficking investigations or have any participated in joint immigration enforcement operations not limited to ICE Enforcement and Removal Operations?

For more information on the N.M. Delegation’s work to tackle the opioid crisis, click here.

The full text of the letter is here and below:

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