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Letters to the editor: Dec. 15

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Tough budgeting ahead for New Mexico

The price of oil is hovering around $100 a barrel.

In New Mexico, a resource-rich state, this might be seen as cause for celebration, even as we gasp at the gas pump. After all, it's common knowledge that New Mexico benefits when the prices of oil and natural gas go up. But it's a misperception to think a strong oil market — or even strength in the energy industry as a whole — can save the state from hard financial times. And there are many signs New Mexico is headed for hard financial times.

Oil is up, but natural gas — which packs a more powerful economic punch — is down, along with gross-receipts and income-tax revenues. The housing collapse is starting to take a toll on the national economy, the stock market dove several hundred points over a few days, and locally we are losing jobs at our national labs and some of our biggest employers.

Estimates of new money for the budget year that starts July 1 have dropped in the last few months from $450 million to about $370 million. That amount, about 6 percent more than we are spending this year, is perhaps enough to cover inflation in the costs of health insurance, utilities and the general business of running the government. It might even be enough to continue our efforts to improve public education and expand health care to more uninsured New Mexicans. But there are many new initiatives, including the spaceport and the Rail Runner.

And we are already seeing the impact of resources stretched too thin: Some highway projects in the package called GRIP I are being dropped to make room for the growing costs of other projects, and GRIP II is already short some $80 million. This cut in highway projects reflects both the negative impact of higher gasoline costs, closely linked to construction costs, and the impact of a slowing national economy, which prompts the federal government to cut back on its contributions to the states.

After spending 60 percent of the state's $6 billion in general fund monies on education, 25 percent on health and human services and most of the rest on law enforcement, prisons, environmental protection and the other functions of state government, state budget-drafters will be hard-pressed to invest in new initiatives. At the same time, they must keep the state's financial reserves high in case revenues come in lower than expected.

It is possible the troubles we are seeing signal an economic wobble rather than the beginning of an economic slide, but we need to be prepared for something more.

The Legislative Finance Committee has been criticized for focusing too hard on financial warning signs. The committee tends to take a conservative approach to budget-making, often warning of the volatility of oil and natural gas revenue or of the risk in committing future funds. It's an accusation that is certain to come up again this budget season.

It might be that we are heading for a glancing blow rather than a head-on collision, but either way, we should think about bracing for an impact.

John Arthur Smith

Democratic senator, District 35

Chairman, N.M. Legislative Finance Committee

Deming

• • •

Feds shouldn't cut road funds

A Dec. 8 article in The Tribune — "Lack of funds has N.M. road projects on hold," by Barry Massey, highlighted a major problem for New Mexico's transportation system. Rising construction costs and less-than-anticipated federal funding mean the state may have to forgo much needed transportation improvements. This should not be the case.

The cost of materials used to fix pavements has increased 33 percent in the past three years. Asphalt, steel, oil and concrete are all more expensive. And the volume of traffic on the nation's highways continues to increase as well.

Yet, as Transportation Secretary Rhonda Faught pointed out, New Mexico will receive about $570 million less than expected from the federal government between 2006 and 2010. These federal cutbacks greatly exacerbate the financial difficulties facing New Mexico's transportation system.

Financial shortfalls such as this are impacting state budgets across the country. And the problem will worsen as construction costs increase and road conditions decline. Inadequate federal investment will have serious repercussions on our future quality of life, our economy and our environment.

It's time for the federal government to make a real commitment not only to New Mexico, but to all states. Only increased federal investment can solve these transportation problems. The future is now.

Janet F. Kavinoky

Executive director, Americans for Transportation Mobility Coalition

Washington, D.C.

• • •

Time to leave Iraq to Iraqis

According to a recent Los Angeles Times/Bloomberg poll, even military families agree this Iraq war was a mistake and that troops should come home. . . . Recent polls in Iraq indicate that 80 percent of Iraqis want one Iraq and want the U.S. presence gone.

We have wasted our soldiers, time and money on empire-building long enough. Let our Congress not fund the occupation any further, use money in the pipeline to bring home our military and contractors and close those "permanent" military bases. Let the Iraqis organize their country and control their resources.

The Rev. Larry Bernard

Laguna

• • •

Brickbat: BLM, Tribune, BLM does it right

The Tribune's editorial of Dec. 12 ("Brickbat: BLM) sided with allegations made by Forest Guardians that the Bureau of Land Management was not enforcing closures on public lands for wildlife. We wish you had checked the facts of the matter before rushing to judgment.

The BLM has identified public lands in the San Juan Basin to be closed to oil and gas activity in the winter for deer and elk, plus habitat for the lesser prairie chicken in southeastern New Mexico during their breeding season in the spring.

Wildlife is benefiting from these actions. Exceptions to closures are not granted pro forma, as Forest Guardians alleges, but can be granted for short-term operations when wildlife species are not present in closure areas or will not be impacted. Criteria for exceptions to closures were developed with the New Mexico Department of Game and Fish, conservationists and energy industry representatives.

Forest Guardians claims that elk are suffering in the San Juan Basin. The fact is that elk numbers have more than doubled since the late 1980s. The New Mexico Department of Game and Fish has increased the number of elk permits in Unit 2 (northwest New Mexico) from about 100 per year to almost 800 each year over the past two decades.

Forest Guardians also fails to mention that BLM has more than doubled the acreage of winter closure areas in the San Juan Basin in 2003, from 160,000 acres to 350,000 acres. Not only are elk doing better, but so are wintering bald eagle populations. While deer populations remain static, we're working with Game and Fish and other partners to enhance their habitat on public land.

Population trends for lesser prairie chickens show that the species is beginning to increase on public lands; prairie chickens are now repopulating areas that were previously abandoned. The BLM is working with a variety of partners to set aside and improve habitat for the species.

We have invited reporters from The Tribune to come out and see oil and gas operations on public lands more than half a dozen times over the past three years, but they tell me The Trib does not have the staff to be able to travel or cover this activity. We regret that, because we would like to show you how our closures are working to protect wildlife.

Linda Rundell

N.M. state director, Bureau of Land Management

Santa Fe