Cargo urges Martinez to visit Hollywood

As lawmakers prepare to consider what do to with the state’s film incentives, the man who started the first governor's film commission in the world, former Gov. David Cargo, is weighing in on the debate.

He’s urging Gov. Susana Martinez to be more empathic toward the state’s film industry.

Cargo suggests her decision to lower incentives from 25 percent to 15 percent is an “attack” on the industry, and he suggested the new governor plan a trip to Hollywood.

“She needs to go out there and talk to the people in the industry and reassure them that they can film in New Mexico and make a profit,” said Cargo.

He said Hollywood executives want assurances the state is open for business and not political attacks on their industry.

“She ought to be talking about the advantages that the motion picture industry brings to New Mexico, how affirmative it is, how much we gain out of it, all of the wonderful things they’ve really done it. It’s a way of assuring them," said Cargo.

He recommends Martinez learn how to approach movie and television producers.

“She’s explaining this in a campaign mode," said Cargo. "You’re not running against the motion picture companies. You’re running a state, and you’ve got to be involved, not in politics, but in government,” said Cargo.

He disagrees with those making the argument that producers will take their business to states that offer the highest incentives.

“They go were they can film and do it most effectively and they’ve got the most cooperation and they’re welcomed. You see it’s the welcome mat that brings them in," said Cargo. "You bring in more people by empathizing with them and understanding what their problems are and working with them.”

During a news conference a day before Martinez' State of the State address Martinez outlined her legislative priorities and told reporters she plans on sticking with her budget plan which includes the incentive reduction.

She contends the incentive amount needs to be reduced to help balance the budget deficit. Martinez has said her priority is to make sure money is not taken away families and children in the state.

Meanwhile, Cargo gave former Gov. Bill Richardson a B grade for his work luring films to New Mexico, but criticized that administrations heavy reliance on subsidies.

Cargo, who never asked then California Gov. Ronald Reagan to send films to New Mexico, believes Martinez will be more successful going straight to the heart of the industry in Los Angeles.

That’s where Cargo spent his time. In fact, in 1971 he made a cameo appearance in Bunny O'Hare, which starred Bette Davis and Ernest Borgnine, as well as parts in 11 other films.

A dedicated promoter of the New Mexico film industry, Cargo, a Republican, was beloved by liberal Democrats in Hollywood, actually becoming personal friends with those behind the camera as well as the stars facing it.

“I had a vision for what we were going to do in filmed entertainment,” said Cargo. “I had a plan. I had a way of working it out. And it worked out rather well -- extraordinarily well.”

Former Lt. Gov. Diane Denish had high praise for Cargo's vision for the film industry.

"Dave Cargo was a visionary governor," said Denish. "He was one of the first New Mexico governors to see the value of the film and television industry to our state's economy."

After his term as governor Cargo shared that vision with his successor Gov. Bruce King. Later he took King, and First Lady Alice King, to visit with some of the producers and studio executives he had already established relationship with in Southern California.

During the trip, they visited Lawrence Welk’s studio During taping of a show, King danced with Albuquerque native Cissy King, while Mr. Welk danced with Alice.

Time to govern

Cargo, who was only 37 when he was elected governor in 1967, also told us he was disappointed in Martinez’ first State of the State speech, calling it "too political."

“She’s got to make the transition from being in campaign mode to being governor. She had a lot of things that were good. But, she’s talking about things that are exciting partisan feelings and that’s not going to get her through the legislature,” said Cargo. “She’s got to get after things that she can agree with them on. She’s got to work with them. She can’t antagonize them.”

Cargo, who celebrated his 82nd birthday last week, wrote an autobiography titled Lonesome Dave several years ago.

Report: Efficiency can save state $129 million annually

Facing a nearly $500 million deficit, Gov. Bill Richardson will consider recommendations, by a committee he appointed last month, to make sweeping changes in state goverment, which are all aimed at saving taxpayer money and making New Mexico's government more efficient.

The report, from the Committee for Government Efficiency, which was was submitted to the governor yesterday, identified a total of $129 million in annual budget savings, and calls for merging some state departments, doing away with more than a dozen boards and commissions and changing the public school funding formula.

"These are solid recommendation that make a lot of sense as we look for new ways to reduce spending and cut bureaucracy," Richardson said in a statement released on Thursday afternoon. "I'm ready to pursue many of these ideas immediately during the upcoming legilsative session and by executive order."

In addition to its immediate recommendations to downsize the government, the committee also made long-term recommendations to reduce both the state payroll and the number of the state's colleges, universities, and school districts.

Senate Finance Committee Chairman Sen. John Arthur Smith, D-Deming, told the Associated Press some of the committee's recommendations are "heavy-hitters" and would require further study after the legislative session.

"It seems to me that given this legislative session we're going into, people just want to raise money so we can go back to business as usual and pass up this opportunity," Smith said. "We look at the down side because there's no money, but this is a tremendous opportunity for government to redefine itself."

Workforce reductions possible

Smith wants the legislature to look for places to pare back costs and that could lead to a reduction in workforce.

Currently, the state employees the highest number of government workers per capita in the country. In fact, there are 24.5 employees per 1,000 residents, which is 72 percent higher than the national average of 14.3.

But many of those workers are employed by corrections and higher education institutes.

Compared to Arizona, which has about triple the population and only three public universities, New Mexico, the has six four-year universities and at least 18 two-year colleges.

Carter Bundy, who is the political and legislative director for AFSCME, the American Federation of State, County and Municipal Employees union, said he believes that state's rural status is the primary reason for the high ratio of government employees.

"If you look at the list of state that have a (high) number of employees per capita, they're virtually all rural states," Bundy told the Albuquerque Journal. It reflects the reality that we have a lot of people in a lot of different places to serve, and we don't the get benefits of economies of scale."

Bundy also reminded the Journal that New Mexico has "fewer classified state employees per capita than it did in 2002.

The committee's recommendations also include merging the Public Education Department with the Higher Education Department and joining the Homeland Security Department with the Department of Public Safety.

The committee suggested a state Commerce Department could be created by joining existing departments of economic development, labor, tourism, regulation and licensing, workers compensation, border authority and the spaceport authority. Additionally, the Environment Department and the Energy, Minerals and Natural Resources Department could also be combined.

The recommendations also call for changes to Medicaid benefits and public school funding that could save New Mexico an estimated $110 million.

Considered for elimination would be 18 boards and commissions, including the Governor's Finance Council, the Green Jobs Council, the Governor's Blue Ribbon Water Task Force and some more obscure entities, such as the Interior Design Board and the Storage Tank Committee.

Many boards and commissions have outlived their original purpose or are no longer effective, the committee report suggested.

The committee's members, mostly veterans of state government finance and budgeting, were praised for their by the group's chairman former Gov. Garrey Carruthers.

"This is a very knowledgeable group of people who know state government and know where to look to find significant savings," Carruthers said in a news release. "We look forward to continue to work with Governor Richardson and the Legislature to streamline government and make it more responsive to New Mexicans, particularly during these tough economic times."

The group included New Mexico Tech President Daniel Lopez, former Finance and Administration secretary Willard Lewis, UNM Executive Vice President for Administration David Harris, Chris Krahling, a former architect of the government reorganization in the Jerry Apodoca administration, former DFA budget director John Gasparich, and current DFA Secretary Katherine Miller.

Education Secretary Garcia reacts to budget cuts

Immediately following Gov. Bill Richardson's news conference -- at noon in Santa Fe -- we spoke with Education Secretary Veronica Garcia about cuts to education programs and whether or not tapping the state's permanent fund is a good idea or not.

'Spinning the numbers on education cuts is a dangerous game'

AFT Lobbyist Tiffany Fiser
Tiffany Fiser with the American Federation of Teachers - New Mexico tells us that the governor's decision will make it even more difficult for educators to provide quality programs to children in the classroom.

"Lawmakers are cutting classroom support," Fiser said. "The bottom line is that the state equalization guarantee funds every aspect of our schools. This new round of cuts certainly was not the outcome we had hoped for because it again cuts the state equalization guarantee. We don't think education can withstand another hit without severely impacting the education we are providing to children."

While teachers won't be impacted by the governor's mandatory five day furloughs, they will likely face some layoffs across the state because of the cuts already made.

"Spinning the number on the education cuts is a dangerous game," Fiser said. "This cut reduces the state equalization guarantee again this year (for the fourth time), and will also affect the 2011 baseline for education spending."

Fiser wants to know why lawmakers and analysts aren't talking about the true nature of recurring cuts to education funding and one-time money being used to obfuscate those cuts.

"The one percent cuts they keep talking about misleading," Fiser said. "Teachers can do the math on these cuts, and many feel betrayed."

The teacher's union Fiser lobbies for suggests the only long-term responsible way to solve the state's budget crisis is to enact revenue enhancements, including sin taxes, rolling back tax cuts for the wealthiest New Mexican's and making big box corporations pay their fare share.

"Government has got to reign in wasteful tax spending," Fisher said. "The budget will never be balanced and they are going to bankrupt education and public service."

Exercising his veto pen

The Governor’s budget action, combined with his efforts to save $150 million by freezing capital outlay projects, will put the state on a responsible path toward balancing the current-year budget.

“Since the session ended, I have heard from hundreds to New Mexicans, including many legislators – who want me to exercise my veto pen to preserve those services,” Governor Richardson said. “I understand and share their concerns, particularly in light of the previous budget cuts.

“However, it would be fiscally irresponsible to simply veto this bill and wait for the Legislature to meet again in January – more than half-way through the fiscal year. “Instead, I am signing an Executive Order today that directs more responsible budget cuts across state government.”