BAD SIGN

I just saw a Capitol maintainance worker taking down the cameras in the Senate gallery that had been purchased and installed for the purpose of webcasting state Senate floor sessions.

Last month I reported that the state Senate leadership had decided not to start webcasting this year despite the fact that the full Senate last year voted overwhelmingly to Webcast and had already spent $30,000 to buy and install cameras for that purpose.

When I talked with Sen. Mark Boitano, R-Albuquerque, who sponsored Senate Memorial 45, last month for my article, he expressed some guarded hope that he might be able to convince the Senate brass to relent and start the Webcasting afterall. With today's removal, it looks like that's one step further from becoming a reality.

Just a reminder: New Mexico is one of only six states that doesn't webcast at least some legislative proceedings.

COMEBACK OF THE YEAR: RICHARDSON'S BEARD

It starts with a little stubble ...











Photo by Clyde Mueller, The New Mexican

GOV TALKS ABOUT HIS BUDGET PROPOSAL

Gov. Bill Richardson at a press conference just declared the theme of the Legislature to be "The Year of Fiscal Restraint."

One of his proposals is to -- temporarily -- increase class sizes in public schools. It's not clear just how much. DFA Secretary Katherine Miller said the proposal is to eliminate the cap of 165 students per teacher in high school and middle school. Sounds like it could get crowded.

He also said under his plan the state would deauthorize funds for "stalled" capital outlay projects, for a savings of $263 million. We're not sure which projects they're talking about, but Miller said the list wasn't ready yet.

But the BIG news is that the beard is back! Currently it's only stubble, but that's how these things start. I asked him at the end of the conference, and he replied with a resounding "Yes!" (Hopefully I'll have a photo to post soon.)

Here's the official news release about the budget:

SANTA FE – Governor Bill Richardson today outlined a fiscally
responsible plan to cut spending, save money and improve tax collections by nearly half a billion dollars to prevent a budget
shortfall.

“Because we have been fiscally responsible by expanding our economy and saving money during the good times, we are well positioned to deal with this worldwide financial crisis,” Governor Richardson said. “Rather than irresponsible, across-the-board budget cuts that would slash services, we have targeted our efforts in a smart and strategic way.

“My budget plan does not increase taxes; leaves essential services for New Mexicans intact; and keeps substantial and responsible cash reserves to protect us against further shortfalls,” Governor Richardson said.

Governor Richardson is proposing budget cuts and improved tax collections totaling $498 million for the current 2009 budget year, which ends in June 2009.

That plan includes:
Targeted Cuts to Agencies: $108 million
Increased Tax Collections: $79 million
De-authorize capital outlay projects: $263 million
Other one-time cuts: $48 million

Governor Richardson is proposing budget cuts, new savings, improved tax collections and money from cash reserves totaling $455 million for the 2010 budget year that begins July 2009.

That plan includes:
Targeted Cuts to Agencies: $290 million
Increased Tax Collections: $34 million
GSD and DoIT savings: $12 million
Cash from reserves: $119 million

NY TIMES ON NM ETHICS

I have, and other reporters around here have written for years about the weak ethics laws in the state of New Mexico -- unlimited campaign contributions, laughable campaign-finance reporting requirinments, etc.

With the Richardson/CDR scandal, The New York Times has added its voice this weekend with a story headlined "Inquiry Highlights New Mexico’s Few Ethics Laws."

For me, the most surprising sentence was "For his part, the governor, who declined to be interviewed ..."

Bill Richardson refusing an interview with The New York Times??????!!!!!!!!?????

As John Lennon said, "Strange days indeed, most peculiar, mama!"

DENDAHL STILL THINKS ABOUT NM

Former state Republican Chairman John Dendahl, who was Gov. Bill Ricahrdson's GOP opponent in 2006, might have left New Mexico, but he still thinks about us.

Here's his latest column, dealing with a certain governor we know, published on a conservative Colorado Web site called Backbone America.

It'll also be published Monday on the Family Security Matters site, where you also can find some of Dendahl's previous work.

UPDATE: 1-12-09 I added a direct link to Dendahl's story on the Family Security Matters link.

NEED ANOTHER LITTLE SCANDAL TO CHEW ON OVER THE WEEKEND?

I just received this curious little news release from the Department of Workforce Solutions. It's apparently in response to rumors swirling around the Roundhouse this week that former Secretary of of State Rebecca Vigil-Giron, who now works for the agency formerly known as the Labor Department, had been indicted.

Here's a background story on Vigil-Giron's situation: CLICK HERE

Here's the news release:

Statement from NMDWS Regarding Rebecca Vigil-Giron

There has been no personnel action taken against Ms. Vigil-Giron.

Ms. Vigil-Giron informed Secretary Betty Sparrow Doris of a pending Attorney General investigation involving matters not related to her work at the NM Department of Workforce Solutions. We are not aware of any allegations of wrongdoing.

Because this is an ongoing investigation, and because the Attorney General has not shared details of the investigation, we are not in a position to comment further

.
So it's really a non-news release. All it does really is confirm there is and investigation.

A spokesman for the AG's office said this week there has been no indictment or other action.

UPDATE: Here's a link to the Associated Press story.

CROSSOVER

Yes, I did separate my music and political blogging. Yet sometimes the two intersect.

So anyone interested in reading about songs about Richard Nixon, whose birthday is Friday, check out Terrell's Tuneup over at my music blog.

GOT SCANDAL FATIGUE YET?

The Associated Press just broke this story. (I added a little background)

A state grand jury is investigating the operations of an Albuquerque-based regional housing authority that defaulted on payments for $5 million in bonds it sold to New Mexico.

Witnesses have been subpoenaed to appear in early February, according to a person familiar with the criminal investigation who asked not to be named because of the confidential nature of the proceedings.Attorney General Gary King’s office has been investigating the Region III Housing Authority, which the State Investment Council concluded in a 2006 report had misused bond proceeds to pay salaries and benefits, make loans and buy vehicles.

The investment council in May filed a separate civil action against the agency’s former executive director, Vincent “Smiley” Gallegos, and an Albuquerque bond attorney, Robert Strumor, in an effort to recover the $5 million in taxpayer money. That lawsuit is pending.

Gallegos, a former legislator and lobbyist is a longtime friend of House Speaker Ben Lujan, D-Nambe. For years he was known to frequent the speaker's office when the Legislature was in session.The authority is one of seven in New Mexico created to provide affordable housing.A spokesman for King, Phil Sisneros, would say only that the investigation is “ongoing.”

He said he had no information about a grand jury.Albuquerque lawyer Paul Kennedy confirmed he is representing Gallegos, but declined on Thursday to comment further.

Staff in the State Investment Council office have “spoken at length many times in the past year” with representatives of the attorney general’s civil and criminal divisions, as well as with the state auditor’s office, according to spokesman Charles Wollmann.Wollmann said because of the pending civil lawsuit it would be inappropriate to comment further.

State Auditor Hector Balderas said that his office — which has been cooperating with the investigation — is preparing to release a report next week on the state’s troubled regional housing authorities, including Region III.

“I’m hopeful that this report will provide a clear financial view of what happened to these regions,” Balderas said.The auditor wouldn’t comment in advance of the report’s release on what his office had learned about Region III.

“I’ve directed my auditors to cooperate and provide any documentation that might be helpful to the attorney general’s office,” Balderas said.

Gallegos, a former state legislator from Clovis, resigned in 2006 as the executive director of the agency, which covers Bernalillo, Sandoval, Torrance and Valencia counties.According to a 2006 State Investment Council report, about $870,000 in bond money went to Gallegos as salary, benefits and a loan.

That report also said the housing authority sold homes to people who were not qualified because they had a relationship to the authority or were not low-income.

The civil lawsuit alleges that Gallegos defrauded and deceived the State Investment Council and misused bond proceeds to benefit himself and other employees.With Region III mired in scandal two years ago, the administration of Gov. Bill Richardson said only two of the state’s seven regional housing authorities were doing the job they were created to do, and an overhaul was needed.

The Legislature passed a bill that severely restricted their autonomy, removing their ability to issue bonds and providing closer scrutiny by the Mortgage Finance Authority and the state Department of Finance and Administration.

In 2006, Gallegos made the news when it was revealed that Bernalillo County Metro Judge Theresa Gomez and Speaker Lujan’s secretary were allowed to live rent-free for several months in homes owned by Region III. Both were told by Lawrence Rael, who at that time was in charge of Region III, to pay back rent.

ALL A TWITTER

I haven't mastered this Twitter deal yet, but my bureau partner Kate Nash started a New Mexican Twitter page.

Line up, sign up.

CLICK HERE

AN OLD CAMPAIGN CONTRIBUTION

When Gov. Bill Richardson announced he was withdrawing his nomination for U.S. Commerce secretary because of a grand jury investigation of a potential case of pay-to-play, several national pundits commented that he was the second governor connected with President-elect Barack Obama facing such scandals — the other being Illinois Gov. Rod Blagojevich.

There’s actually another connection between Richardson and Blagojevich — a $20,000 campaign contribution from Richardson to the Illinois governor’s PAC.

The contribution to Friends of Blagojevich, dated Nov. 6, 2006 — one day before the general election — was reported in December 2006 by Richardson’s re-election campaign.

Richardson won that election with nearly 70 percent of the vote. In that race he raised more than $13 million.

It’s not uncommon for politicians to contribute to each other’s campaigns. Much of Richardson’s campaign money that year went to other Democrats in New Mexico plus Democratic organizations in states like Iowa and New Hampshire, where Richardson would spend much of the next year campaigning for president.

Neither Richardson spokesman Gilbert Gallegos nor re-election campaign official Amanda Cooper could immediately be reached for comment.

A federal grand jury in Albuquerque is investigating whether there was pressure in 2004 to hire CDR Financial Products, a California company that did work on state Transportation bonds. The company and its chief executive officer David Rubin contributed more than $100,000 to Richardson political committees.

In Illinois, Blagojevich was arrested in December after federal investigators caught him on a wire tap discussing selling Obama’s open Senate seat. A federal prosecutor said Obama is not suspected in any wrongdoing in that case.

UPDATE 11:22 am : Loyal readers will recall the "French Connection" drug deal involving Richardson and Blago that I reported last month. (Don't worry. Nothing really scanalous there.)

UPDATE 12:24 pm: The original version mistakenly said the $20K was from Blagovevich to Richardson. The contribution, as the story now says, was from Richardson.