Denish, Christmas cards and the Stimulus Funds

I took a look this evening at the same documents that Jim Scarantino did the ones that prompted his report in New Mexico Watchdog, a Website associated with the conservative Rio Grande Foundation. Basically it's a basically a pretty thick pile of invoices from 2003 and 2004 representing money Denish's office spent out $225,000 in federal stimulus funds.

Word of warning: Some of Denish's opponents are saying she spent $225,000 on Christmas cards, personal drivers etc. Actually the amount spent on controversial items was far far less. (As for the Christmas cards, one of her contract public information officers did bill the state for working on Christmas cards in 2004. But the Denish campaign actually paid the $3,000 printing bill for the cards.)

There's more detail about this and other expenditures in my story is HERE

Roundhouse Roundup: Spinning the 09 Elections

A version of this was published in The Santa Fe New Mexican
November 5, 2009

It was predictable that the smattering of elections in distant states this week would bring out New Mexico politicians who would spin the results as favorable to themselves.

The Republican victories in the New Jersey and Virginia gubernatorial races gave New Mexico Republicans a chance to crow. State GOP chairman Harvey Yates released a statement headlined "Republican Victories in VA and NJ Sign of Future Wins in 2010." Gubernatorial candidate Allen Weh released a statement Tuesday night saying, "What is happening nationally is being felt right here at home."

In her own news release, one of Weh's rivals, Susana Martinez, made a subtle effort to identify with the winner in New Jersey. "Chris Christie, a prosecutor with a record of holding corrupt public officials to account, carried a Democratic state that has been plagued by corruption scandals." Martinez, who is district attorney in Las Cruces, has described herself in similar terms.

Of course, none of the Republican statements mentioned the fact that while the GOP did sweep the two governor's races, Democrats made a new gain of two congressional seats in Tuesday's elections — one in that crazy upstate New York race, the other in California.

But those races weren't what the New Mexico's Democratic Party was spinning.

"While Republican leaders are focused on election results in other states, here in New Mexico, Democratic candidates built on the energy and enthusiasm created during the 2008 elections to claim victories in yesterday's city election in Las Cruces," State Democratic chairman Javier Gonzales said in a news release Wednesday.

"I'd like to congratulate Olga Pedroza, Gill Sorg and Sharon Thomas on their impressive victories," Gonzales said. "Democrats are organizing in all regions of New Mexico, continuing the movement Obama built in 2008, and we are well-positioned to win big again in 2010."

It's true. Pedroza, Sorg and Thomas all won their city council races. And indeed, all three are Democrats.

One little detail Gonzales left out, though. According to Walt Rubel, a former member of the state Capitol press corps who now is editor of the Las Cruces Sun News, in two of those races, the losing candidates also were Democrats. Like Santa Fe and other cities in the state, municipal elections are, officially at least, nonpartisan.

Rubel said the real split in the Cruces council races was progressive Democrats vs. more conservative "pro-business" Democrats. In all three races, the progressives won.

But had Dolores Archuleta defeated Pedroza and/or Gil Jones beat Sorg, Gonzales could have written the same news release — and just changed the names.

Come to your census: The envelope had a serious message in bold black letters: "Do Not Destroy. Official Document." Inside was a document that kind of resembled tax forms or the statements from the Social Security Administration. "2009 Congressional District Census" it said. It even had a "Census Tracking Code" — No. N09P1053 to be exact.

But it wasn't from the U.S. Census. The "Special Notice" at the top of the page said, "You have been selected to represent Republican voters in New Mexico's 3rd Congressional District. Enclosed please find documents registered in your name."

The funny thing is, the person it was registered to was Earl Potter, a Santa Fe lawyer who happens to be a former state Democratic Party chairman.

Along with the "census" document — which turns out to be a written poll on several national issues — was a letter from National Republican Committee chairman Michael Steele, who told Potter, "Because of your high level of political involvement and steadfast commitment to the Republican Party, your personal input on the questions presented in your Census Document is critical to our party's future."

Potter assured me he's still a Democrat. He also didn't fill out the "census" questions, which I guess jeopardizes the future of the GOP.

First Shots in the Booze Battle

In today's paper I previewed what's bound to be a big battle in next year's Legislature -- a move to increase the state excise tax on alcoholic beverages.

According to lobbyist Ed Mahr, to whom I spoke yesterday, the state hasn't raised this tax since 1994. But between the increases that year and the year before, the tax went up by 100 percent he said. As the story points out, New Mexico is in the top 10 states for taxes on beer and wine and in the top 20 for distilled spirits. (There's also a tax on "fortified" wine, which is higher, but hardly anyone ever talks about this, I supposed because winos don't vote.)

"In a recession, it's a bad idea to raise any tax. Things are tough out there for businesses. The excise taxes here are too big already," Mahr said.

But Rep. Brian Egolf, D-Santa Fe, argues that his "dime-a-drink" proposal won't have that big of an effect. "If you are going out with your friends to have three or four beers — with a designated driver, of course — you're not going to stay home just because it's going to cost you an extra 40 cents," he said.

Whoever's right, it should be an interesting showdown. The real winners might be the broadcast industry. The last time the state gave serious consideration to raising alcohol taxes (2003) a national liquor industry group waged a radio campaign against the idea.

Eichenberg Reaffirms Support for Denish

Sen. Tim Eichenberg, D-Albuquerque, in a statement e-mailed to me and several other political bloggers, spoke about his recent prediction that Lt. Gov. Diane Denish would lose in her race for governor because of what he called her “complacency or complicity with the ‘pay-to-play’” atmosphere in the Richardson administration.

But notice he's not retracting his remarks nor is he challenging the accuracy of the initial report by photographer/blogger Mark Bralley.

Here's what the senator said:

I find it unfortunate that my comments were used to create division among Democrats and the Democratic Party, I will continue to support both! I realize my comments have stirred emotions on both side of the aisle but I hope they will provoke continued discussions on ethics reform, transparency and accountability.

"As Lt Gov Diane Denish continues the fight to bring meaningful ethics reform to Santa Fe, I will proudly vote for her proposals to make government more transparent and accountable to the taxpayers. She can lead New Mexico into the future and there is no doubt in my mind who I will vote for in November.

Gary Johnson 2012 Ad

Here's the latest from the grassroots group pushing former New Mexico Gov. Gary Johnson for president. No evidence Johnson himself had anything to do with this.


Warning! Techno music is involved here.



(Thanks Heath.)

Taxes Increases Inevitable, Richardson Says

I just got back from a press conference with Gov. Bill Richardson. Although he's campaigned both for president and for re-election as governor as a tax-cutting Democrat, Richardson told reporters today that tax increases are "inevitable" during the next legislative session because of the budget crisis.

"It's very painful," he said. Richardson declined to say which taxes he wants to boost. He said he'll soon be appointing a committee to study the best ways to raise revenue.

On another topic, I asked Richardson if he planned to follow Lt. Gov. Diane Denish's example and give his political contributions from indicted CDR found David Rubin to charity.

His answer proves he's still got a sense of humor. "I'll have to review that," he said. "Did I get donations from them?"

For the record, the $110,000 CDR gave to Richardson's political committees led to a federal investigation and cost him a job in the Obama cabinet. The investigation ended with the Justice Department deciding not to indict anyone.

Michael Steele Coming to NM

The state Republican Party just announced that Republican National Committee Chairman Michael Steele will be in Albuquerque on Friday, Nov. 13.

Steele will appear at a cocktail reception and dinner at Hotel Albuquerque in Old Town. I assume it's some kind of fundraiser, but no ticket price is listed. For more information try this email.

Mayor-elect R.J. Berry will be a "special guest."

Martinez First With Eichenberg Quote

Yesterday Matt at NM FBIHOP predicted that Sen. Tim Eichenberg's statement that Diane Denish will lose the governor's race would be the subject of Republican press releases for the next few days.

That's coming true. GOP governor candidate Susana Martinez was the first to issue a "They Said It!" press release.

One thing you have to give Team Martinez: They've got the best rapid-response effort of any of the candidates. Martinez almost always is the first to comment on such developments.

Smiley in Bloomberg

Bloomberg.com has a story this morning featuring Vincent "Smiley" Gallegos -- who currently is facing state charges alleging misuse of bond money when he was director of a state affordable housing program -- and CDR Financial Products, whose president and founder was indicted last week on unrelated charges in New York federal court.

Gallegos, then the executive director of Region III Housing Authority New Mexico Inc., sold bonds in February 2003 with the help of Los Angeles-based CDR Financial Products Inc. and its founder, David Rubin.

“At the time the authority issued the bonds, there was ample evidence that the program would not be successful,” the IRS wrote in March 2007 after investigating the transaction. “A prudent person would not have taken the same actions.”

Two months later, federal tax authorities revoked the bonds’ tax exemption. The IRS found that one of the agency’s banks, Paris-based Societe Generale SA, would earn as much as $1.5 million on a program for low-income and first-time homebuyers that lent only about $2.6 million. Tax authorities also found that CDR was collecting more than $50,000 a year from Societe Generale in fees not disclosed in public bond documents.

Gallegos, 56, and Rubin, 47, are under criminal indictments as the result of separate investigations unrelated to that debt.

Bloomberg quotes Gallegos' lawyer Paul Kennedy saying no jury will convict his client. The story also notes "Gallegos didn’t open the door of his home in Albuquerque when a reporter knocked, nor did he answer his mobile phone."

Eichenberg Says Denish Can't Win

Photographer/Blogger Mark Bralley got a nice scoop involving the governor's race.

State Sen. Tim Eichenberg, D-Albuquerque, who had been considering a race for lieutenant governor, showed up at a coffee held by state Rep. Janice Arnold-Jones , R-Albuquerque -- who is running for governor -- and said Lt. Governor Diane Denish "can't win."

From Bralley's blog What's Wrong With This Picture:

He talked with current Lt. Gov. Diane Denish, who is the only declared gubernatorial Democratic Party candidate, telling her that because of her “complacency or complicity with the ‘pay-to-play’” atmosphere surrounding the administration of Governor Bill Richardson, and standing quietly behind him, Eichenberg was unwilling to invest a half million dollars in a losing campaign.

"I looked her square in the eye when I said that,” Eichenberg said. “I told her I didn’t think she was going to win.”

Pretty strong words from a fellow Democrat!

As I blogged here a couple of weeks ago, I talked with Eichenberg at the outset of the special session and he told me he wouldn't be running. At that time, however, he didn't mention pay-to-play or spending a half-million dollars on a losing race.

Eichenberg told me that he "doesn't compliment the ticket." As I said at the time, I assumed he was talking about ethnicity. He would have been the only Anglo among six Hispanic candidates. Denish also is Anglo.

Why was he at an event sponsored by a Republican lawmaker/gubernatorial candidate? Bralley explained Eichenberg's district overlaps with Arnold-Jones' and it's billed as a "Saturday morning constituent meeting" that's "open and nonpartisan."