Albuquerque, New Mexico and the country has seen a remarkable and historical time as all government struggles to deal with the coronavirus and suppress the curve on the highly contagious virus.

Following are the major highlights:

GOVERNOR MICHELLE LUJAN GRISHAM DECLARES PUBLIC HEALTH EMERGENCY

On March 11, Governor Michelle Lujan Grisham became the first New Mexico Governor to invoke the 2003 Public Health Emergency Response Act (PHERA), issuing an Executive Order declaring a “public health emergency” giving her administration broad powers to deal with the coronavirus . The governor urged people to avoid public gatherings, sanitize common surfaces and minimize contact with other individuals, even if it means staying home from church or going out less often in order to slow transmission of the virus.

During a press conference declaring the emergency, Lujan Grisham said New Mexico has 2,400 tests available to determine who has the coronavirus. Health officials will be determining who is most in need of the test. The state has completed about 129 tests for the coronavirus so far and just 5 have turned up “presumptive positive.”

https://www.abqjournal.com/1430120/nm-has-three-confirmed-cases-of-coronavirus.html

In announcing the Public Health Emergency the Governor had this to say:

“This is a very highly infectious virus. … This is a serious situation. I will use every tool and resource to keep us safe.”

STOCK MARKET CRASH

On Friday, March 12, 2020, the stock market crashed to its worst day since 1987, shrugging off dramatic intervention by two central banks and a prime-time address by President Trump as Americans realized the coronavirus will impose new limits on their daily lives.

The Dow Jones industrial average posted its largest one-day point loss in history, dropping almost 2,353 points to close at 21,200.62. In percentage terms, the 10 percent loss marked the Dow’s worst day since the infamous October day known as “Black Monday.”

The broader Standard & Poor’s 500-stock index fell into a bear market, defined as falling 20 percent from a prior high. In an epic day-long rout, European markets suffered similar declines, with exchanges in Paris and Frankfurt shedding more than 12 percent and London’s FTSE index losing nearly 11 percent.

https://www.washingtonpost.com/us-policy/2020/03/12/markets-stocks-today-coronavirus/

EVENTS SCHEDULED AT STATE OWNED FACILTIES CANCELLED

In the interest of public safety, Governor Lujan Grisham ordered the cancellation or postponement of all events in state-owned facilities including the Gathering of Nations. All events at Expo New Mexico have been canceled at least through the end of March. These include the Monster Jam, Rio Grande Arts and Crafts Festival, the World Series of Team Roping, ABQ Rubber Stamp Show, Southwest Chocolate and Coffee Festival, Central New Mexico STEM Research Challenge, MasterWorks of New Mexico, New Mexico Renaissance Celtic Festival, New Mexico Photographic Art Show, and Treasures of the Earth Gem, Mineral and Jewelry Expo. The flea markets have also been closed through the end of the month.

NEW MEXICO HEALTH SECRETARY ANNOUNCES BAN ON PUBLIC GATHERINGS

On March 12, New Mexico Health Secretary Kathy Kunkel announced a temporary ban on public mass gatherings of 100 people or more, as the state’s efforts to slow the spread of the coronavirus have rapidly intensified. Secretary Kunkel has the authority to impose the ban under the 2003 Public Health Emergency Response Act (PHERA) now that the Governor has declared a public health emergency. Mass gathering means any public or private gathering that brings together 100 or more individuals in a single room or connected space in close proximity to one another.

The ban announced by Secretary Kunkel applies to facilities such as auditorium, stadium, arena, large conference room, meeting hall, theaters, or any other confined indoor or outdoor space. The ban took effect immediately. However, airports, public transportation and shopping malls are exempt from the order. It also does not apply to weddings, funerals, restaurants, bars, hospitals and schools, retail stores, grocery stores, offices, businesses, clinics, courthouses, places of worship or shopping Malls.

https://www.abqjournal.com/1430774/nm-health-secretary-issues-ban-on-large-public-gatherings.html

NEW MEXICO EDUCATION SECRETARY ANNOUNCES PUBLIC SCHOOL CLOSURES FOR 3 WEEKS, LIKELY WILL CLOSE UNTIL END OF SCHOOL YEAR

Late March 12, Cabinet Education Secretary Ryan Stewart announce that all New Mexico public schools will be closed and classes canceled, starting Monday, March 16, for three weeks and ending April 6. On March 23, the Governor said it is likely all public schools will remain closed until the end of the school term.

Education Secretary Ryan Stewart had this to say about the school closures:

“This is a proactive measure to limit the potential community spread of COVID-19. …We have seen other states take this measure after they have experienced community spread of this virus. New Mexico is going to be proactive and do everything we can to prevent the potential spread of the virus. I have been in communication with all of our superintendents about this proactive step, and we are all going to work together to address this public health challenge.”

https://www.kob.com/news/all-nm-public-schools-canceled-for-three-weeks/5672931/?cat=500

ARCHBISHOP ANNOUNCES CATHOLIC CHURCH AND SCHOOL CLOSURES

On Thursday, March 12, Archbishop John C. Wester announced on Thursday, March 12, that the Archdiocese of Santa Fe is canceling its church services and closing its schools until further notice, effective immediately, following the lead of state officials who have ordered the closure of all New Mexico K-12 public schools for three weeks. The measures were taken to prevent community spread of COVID-19. The Archbishop had this to say about his decision:

“The church is very much pro-life and we see this as very much a pro-life issue. … We are concerned about the health of our parishioners, particularly those who are elderly, and people with underlying and chronic health conditions.”

https://www.abqjournal.com/1431060/archdiocese-of-santa-fe-halting-church-services-indefinitely.html

TRUMP DECLARES NATIONAL EMERGENCY

On March 13, President Donald Trump declared a national emergency to freeing up to $50 billion in federal resources to combat coronavirus. The announcement was part of a new measures Trump hopes can bring a roiling health crisis under control after a week of market seesaws and major disruptions to everyday life.

https://www.cnn.com/2020/03/13/politics/donald-trump-emergency/index.html

STATE ORDERS MORE HEALTH RESTRICTIONS

On Sunday, March 15, Health Secretary Kathy Kunkel, announce an amended public health order with restrictions that apply to all restaurants, bars, breweries, eateries and other food establishments. Under the public heath order, restaurants and bars are being ordered to operate at no greater than 50% occupancy, with no more than 50% of seating capacity. The order also prohibits the establishments from seating more than 6 people at tables and booths, and it mandates that all occupied tables and booths be separated by at least 6 feet. Patrons will no longer be allowed to be seated at bars, and they can’t be served if they’re standing.

In a news release announcing the new rules Gov. Michelle Lujan Grisham said:

“The best thing New Mexicans can do right now is self-isolate and limit person-to-person contact. … We all have to pull together in this effort. Keep washing your hands with soap and water regularly. Stay at home.”

OTHER STATE CLOSURES

Beginning March 15, all state museums, historic sites, parks and cultural institutions were closed until further notice. Government offices that provide direct services, including the Motor Vehicles Division, will begin limiting staff and shifting toward a remote-service model. All other state buildings and leased state offices will be closed to the public.

CITY OF ALBUQUERQUE

The city of Albuquerque announced March 15, that it would continue essential services while maximizing distance between employees. It has also announced that all BioPark facilities will be closed through April 15.

According to a news release, all employees who can will be allowed to “teleworking” to work from home. Non-essential employees who cannot telework will be sent home. Essential employees who can work in the field will be asked to do so exclusively. Workers who cannot come into work because of these policies will receive paid leave. The City also announced that the Westside Emergency Housing Center will be kept open 24-hours a day until further notice with the city screening and testing people who are using the shelter.

GLOBAL OIL PRICE WAR

On March 17 Goldman Sachs Group Inc. the rate of petroleum consumption was dropping by about 8 million barrels a day, or about 8% of global demand. The Russia and OPEC price war has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies including Exxon Mobil Corp. to plan for big spending cuts. Russia and OPEC are boosting their exports just as global oil demand suffers an historic contraction due to the coronavirus pandemic.

With the price war showing no sign of abating and demand falling, Wall Street is slashing its oil forecasts. Goldman is now predicting that the average will be $20 a barrel during the second quarter. Oil traders privately say the benchmark could even drop into the single digits to force some producers to shut down their wells. That’s something that hasn’t happened since the industry downturn of 1997 to 1999.

https://www.bloomberg.com/news/articles/2020-03-17/saudis-to-boost-oil-exports-to-record-10-million-barrels-a-day

MAYOR TIM KELLER ANNOUNCES STATE OF EMERGENCY

On Wednesday, March 18, less than 48 hours after the Albuquerque City Council passed the amended “Emergency Powers Ordinance”, Mayor Tim Keller declared a Public Health Emergency to deal with the corona virus in the city. The Mayor announced and signed the declaration on a video posted on social media and distributed to the local new outlets. In the video announcement, Keller said the declaration “frees up financial resources for our city and flexibility so we can deal with this situation the best way possible.”

The emergency declaration allows the Keller administration to allocate city staff as necessary to address the current COVID-19 pandemic. It will also allow for the city to make “emergency procurements” to protect the health and safety of citizens and property. It also serves as a request for state and federal assistance.
The Mayor’s “Declaration of Local State of Emergency” makes 2 specific requests for financial assistance from the New Mexico Department of Homeland Security and Emergency Management and state agencies and the Federal Emergency Management Agency.

POSSIBILITY OF A “VIRTUAL” SPECIAL SESSION

On March 19, Governor Michelle Lujan Grisham sent a letter to the NM legislative leaders telling them that she will convene a special session to deal with the imploding oil prices that has caused a budget crisis for the state. The question is when and how? Before such a special session is called, and update on the States revenue estimates and the extent federal emergency assistance must he determined. The special session is likely to be called in mid-June, will likely be only one or two days in length an will be done with by “virtual reality” telecommunications.

On March 23, House Speaker Brian Egolf, D-Santa Fe, said that his staff is conducting research into the possibility of conducting the special session meeting through an online program that allows for seminars over the web. The feasibility of a virtual session with ALL 117 members of the legislature connecting online to cast their votes and debate bills.

https://www.abqjournal.com/1435818/a-special-session-with-few-lawmakers-present-ex-new-mexico-examines-ideas-for-online-debate-and-voting.html

STAY AT HOME ORDER

On Monday, March 23, Governor Michelle Lujan Grisham announced the closure of all “non-essential” businesses statewide and delivered the message to state residents to stay home and only go out when absolutely necessary by saying:

“If we limit person to person contact, we will be doing everything in our power to slow the spread. … I need you to heed this order. I need every New Mexican to do their part. Everyone in this state has a social contract for responsibility for one another. … If you don’t take this [seriously], then we can’t reduce the spread of COVID-19. … We don’t take these orders lightly. … I have to prevent as many deaths as possible from this unfair, vicious virus.”

The “stay at home” order is no different than the “shelter in place” orders implemented by the governors of California, New York and several other states. The new order also expands an existing ban on large public gatherings, directing that such gatherings be limited to no more than five people, even family outings. The limit had previously been set at no more than 100 people, and more recently at no more than 10.

According to the Governor, statewide the virus has infected 83 people and hospitalized nine of them statewide, though only five of those individuals remain in the hospital. Testing for the virus has increased significantly and New Mexico is now running roughly 850 coronavirus tests per day. Confirmed cases have now been reported in 11 of the state’s 33 counties.

Department of Health Deputy Epidemiologist Chad Smelser said community spread has been detected in both Bernalillo and Santa Fe counties which means meaning the disease has been transmitted from individual to individual within those counties.

The governor said things will get worse in the coming weeks and said it is highly likely that schools will remain closed beyond April 6, when the initial closure was set to expire.

https://www.abqjournal.com/1435599/lujan-grisham-to-announce-stay-at-home-instruction.html

For a list of “essential businesses” that will remain open see postscript to this blog article.

MASSIVE FEDERAL AIDE PACKAGE

As of Tuesday, March 25, the United States congress is attempting to enact a $2.5 trillion dollar emergency aid package that will include $1, 200 in direct payments to the American people now out of work. The massive aid package is a far-reaching effort to prop up the U.S. economy, help American households and bolster the health care system amid the growing crisis.

Even though Trump’s administration recommended Americans curtail activities starting a week ago, the president said:

“We cannot let the cure be worse than the problem itself. At the end of the 15-day period, we will make a decision as to which way we want to go. Let’s go to work. … This country was not built to be shut down. This is not a county that was built for this.”

Trump added that he may soon allow parts of the nation’s economy, in regions less badly hit by the virus, to begin reopening, contradicting the advice of medical and public health experts across the country, if not the globe, to quarantine even more.

Speaker of the House Nancy Pelosi sharply criticized Trump’s idea of allow business to open and his fluctuating response to the crisis by saying:

“He’s a notion-monger, just tossing out things that have no relationship to a well-coordinated, science-based, government-wide response to this. … Thank God for the governors who are taking the lead in their state. Thank God for some of the people in the administration who speak truth to power.”

OLYMPICS POSTPONED

On Tuesday March 24, bowing to pressure from countries pulling out of the Olympics, the International Olympic Committee (IOC) announced a first-of-its-kind postponement of the Summer Olympics. The said the Tokyo Games “must be rescheduled to a date beyond 2020, but not later than summer 2021, to safeguard the health of the athletes, everybody involved in the Olympic Games and the international community.”

TAKE PRECAUTIONS TO PROTECT YOURSELF AND FAMILY

Older adults and those with chronic illnesses are most at risk to contract the virus that could result in death from complications.

Even healthy young people not worried about getting sick should take steps to protect themselves and others.

The strategy must be to limit the chance of transmitting the disease to persons who are more vulnerable.

Government officials urged people to protect themselves by:

Washing their hands frequently with soap and water for at least 20 seconds
Cleaning “high-touch” surfaces daily with regular household cleaners
When coughing, use a tissue or cough into the forearm of your elbow
Avoiding the sharing of personal household items
Stay home when sick
Avoid large crowds and public events

_______________________________________________________________________

POSTSCRIPT

Gov. Michelle Lujan Grisham on Monday ordered the closure of all non-essential businesses in New Mexico as the state works to limit the spread of COVID-19.
The Governor’s office posted a lengthy list of business types that are essential and that will remain open:

HEALTHCARE / PUBLIC HEALTH

• Hospitals
• Walk-in-care health facilities
• Emergency veterinary and livestock services
• Pharmacies
• Medical and wholesale and distribution
• Home health care workers or aides for the elderly
• Emergency dental facilities
• Nursing homes
• Residential health care facilities
• Research facilities
• Congregate care facilities
• Intermediate care facilities for those with intellectual or developmental disabilities
• Supportive living homes
• Home health care providers
• Medical supplies and equipment manufacturers and providers
• Medical cannabis

EMERGENCY SERVICES

• Law enforcement personnel
• First Responders
• Firefighters
• Emergency management personnel
• Dispatch operators
• Court personnel

CHILDCARE

• Facilities necessary to provide services to those workers employed by essential businesses and essential non-profit entities.

INDIGENT CARE

• Homeless shelters
• Food banks
• Other services providing care to indigent or needy populations

INFRASTRUCTURE OPERATIONS

• Public works construction
• Commercial and residential construction and maintenance
• Utilities, including their contractors and suppliers, involved in water and waste-water supply
• Sewer, trash and recycling collection, processing and disposal
• Road and highway repair and construction
• Solid waste collection and removal
• Nuclear material research and enrichment
• Data and internet providers
• Data centers
• Telecommunications systems

FOOD AND AGRICULTURE

• Farms, ranches and other food cultivation, processing or packaging operations
• Grocery stores and supermarkets
• All food and beverage stores
• Food banks
• Farmers’ markets
• Vendors who sell food
• Convenience stores
• Other businesses that generate most of their revenue from the sale of canned food, dry goods, fresh fruits and vegetables, pet food, fresh meats, fish and poultry, and any other household consumer products
• Businesses that store, ship or deliver groceries, food, goods or services directly to residences or retailers
• Restaurants, but only for delivery or carryout

ENERGY

• Gas and oil drilling and refining
• Electrical production and distribution
• Natural resources extraction or mining operations
• Utilities, including their contractors and suppliers, engaged in power generation, fuel supply and transmission

MANUFACTURE

• Food processing
• Chemicals
• Fertilizer
• Pharmaceuticals
• Sanitary products
• Household paper products
• Telecommunications
• Microelectronics/semiconductors
• Primary metals
• Machinery
• Electrical equipment
• Appliance
• Components
• Transportation equipment

DEFENSE RESEARCH

• Laboratories
• Defense and national security-related operations supporting the U.S. government or a U.S. government contractor

TRANSPORTATION

• Airport operations
• Airlines
• Taxis and other private transportation providers
• Gas stations
• Automobile repair facilities
• Retailers who generate most of their revenue from the sale of automobile repair products

SERVICE SECTOR

• Plumbers
• Electricians
• Security services
• Custodial services
• Other skilled trades necessary to maintaining the safety and sanitation of residences
• Businesses providing mailing and shipping services, including post office boxes

PROFESSIONAL SERVICES

• Legal services as necessary to assist in compliance with legally mandated activities
• Accounting services as necessary to assist in compliance with legally mandated activities

FINANCIAL SERVICES

• Banks
• Credit unions
• Insurance providers
• Payroll services
• Brokerage services
• Investment management firms

MEDIA

• Television
• Radio
• Newspaper operations

MISCELLANEOUS

• Essential manufacturing
• Laboratories and defense and national security-related operations supporting the U.S. government or a contractor to the U.S. government
• Hardware stores, nurseries and businesses that generate most of their revenue from the sale of home-improvement goods
• Laundromats and dry cleaner services
• Funeral homes, crematoriums and cemeteries
• Real estate services including brokers, title companies and related services

https://www.abqjournal.com/1435699/what-businesses-are-essential.html

Just when things were looking great with respect to oil and gas royalties to finance state government, BAM the corona virus hits, a global oil price war intensifies, and New Mexico gets hit in the process, all within one month since the adjournment of the New Mexico legislature on February 20. . The global oil price war has hit hard the state’s revenue boom, harder than anyone expected. It has caused the state budget surplus to evaporate. The New Mexico Legislature’s finance analysts had pegged oil prices for the budget year that ends in June to an average $52 per barrel with oil prices per barrel of crude now hitting $21.

On February 20, the New Mexico legislature ended having enacted a $7.6 Billion dollar budget for the 2020-2021 fiscal year. The enacted budget raised annual spending by $536 million, or by nearly 8% over last year’s budget. The increase in spending was a result of record-breaking oil production in the Permian Basin with the state originally anticipating at least an $800 million increase in state government income during the coming budget year. The legislature also enacted a separate $49.5 million in capital outlay projects. Oil and natural gas represent 39% of New Mexico’s General Fund revenues. The 2020-2021 fiscal year begins July 1.

https://markets.businessinsider.com/commodities/oil-price?type=wti

Passage of the $7.6 billion budget plan for the 2021 budget year was predicated on oil averaging $52 per barrel. The price of crude oil per barrel has now plummeted to an alarming $20 dollars a barrel and is expected to go down even further. With each $1 drop a barrel in oil prices, the state loses upwards of $22 million in direct oil and gas revenue over a full year. Within one month of adjournment of the New Mexico legislature, the corona virus hit the country and hit New Mexico, but the oil price war between Russia and the Organization of Petroleum Exports (OPEC) has hit the state coffers even harder. The biggest fear is that oil prices will drop to single digits.

NEW MEXICO’S RELIANCE ON OIL AND GAS REVENUES

A report by the New Mexico Tax Research Institute released in January, 2020, revealed that the oil and natural gas industry contributed more than $3.1 billion in tax revenue for fiscal year 2019, a dramatic 41% from the $2.2 billion generated the year before. The $3.1 billion was an increase of $910 million from 2018. Oil and natural gas represent 39% of New Mexico’s General Fund revenues, the highest share of all industries in recent history.

https://www.nmoga.org/FuelingNewMexico

The New Mexico oil industry’s historic energy production was enabling unprecedented investment by Mew Mexico in education. In FY 2019, the oil and gas industry contributed $1.36 billion to public education, representing a 28% increase over FY 2018. New Mexico’s highest producing oil and gas counties were Lea and Eddy County. The counties received a combined $90.2 million for K-12 and higher education programs.

While the majority of production takes place in the Southeast and Northwest quadrants of the state, benefits from the oil and natural gas industry were felt statewide. Bernalillo, Santa Fe, Sandoval, and Valencia counties obtained the most education funding, receiving a combined $624 million, according to the report. Not surprising the two largest populated counties received the most in funding. Bernalillo County was the top recipient with $435.9 million, followed by Doña Ana County with $195.2 million.

Public schools and higher education received $1.36 billion from state oil and gas revenue in FY 2019, up a staggering $300 million from FY 2018. It includes upwards of $1.06 billion for primary and secondary education, and $302 million for state universities, colleges and other higher education institutions.

https://www.energyindepth.org/oil-industry-sets-new-record-with-3-1-billion-in-revenue-for-2019-new-mexico-budget/

https://www.abqjournal.com/1410518/nm-earned-31bn-in-oil-gas-revenue-in-fy-2019.html

OIL PRICE WAR RESULTING IN GLUT IMPACTING STATE

In 2017, an oil production agreement was entered into between Russia and the OPEC countries. The agreement suppressed world production approaching 2 million barrels of crude oil a day. The suppressed oil production output lead to very stable oil prices of $50 to $60 a barrel of crude oil. The Russia – OPEC agreement expires on March 31, and the oil producers are expected to ramp up production that will flood the global markets with unprecedented levels of supply. A price war will ensue as the oil producers battle it out to see who will last the longest and gain most market share amid low prices.

The Russia and OPEC price war has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies including Exxon Mobil Corp. to plan for big spending cuts. Russia and OPEC are boosting their exports just as global oil demand suffers an historic contraction due to the coronavirus pandemic. On March 17 Goldman Sachs Group Inc. the rate of petroleum consumption was dropping by about 8 million barrels a day, or about 8% of global demand.

With the price war showing no sign of abating and demand falling, Wall Street is slashing its oil forecasts. Goldman is now predicting that the average will be $20 a barrel during the second quarter. Oil traders privately say the benchmark could even drop into the single digits to force some producers to shut down their wells. That’s something that hasn’t happened since the industry downturn of 1997 to 1999.

https://www.bloomberg.com/news/articles/2020-03-17/saudis-to-boost-oil-exports-to-record-10-million-barrels-a-day

No one knows for certain how long the economic shutdown from coronavirus will last, it could be weeks, months and perhaps even more. Additionally, no one knows for certain how long the price war between Russia and OPEC Countries will continue. The two events combined have pushed the price of U.S. benchmark West Texas Intermediate to $20.06 a barrel as of March 19, the lowest price per barrel of crude oil since 1998.

With the expected April surge in world oil production looming as a result of the Russia and OPEC price war, Exxon said that it’s reassessing its previously announced spending cuts. Major oil companies like Exxon-Mobil and Occidental Petroleum have announced immediate investment cuts ranging from 20% to 40% as a result of the plummeting oil prices.

Occidental has announced it will cut spending by 32%. Exxon Oil has said it will lower its global investments from $30 billion to $35 billion. It’s the Exxon cuts that will have the most impact on New Mexico’s oil royalty’s revenue stream. Exxon has already announced it plans to reduce operating rigs by 20% in Permian Basin from southwestern Texas northward into the New Mexico counties of Lea and Eddy counties.

The 20% decline represents upwards of 4 million barrels a day now produced in the Permian. As the crisis continues, further production oil production will drop in New Mexico impacting the state major revenue source. New Mexico recently reached a historic high of 117 operating rigs despite the current prices no doubt as the result of the delay in the crisis taking a strangle hold of the industry. But that is about to change dramatically.

Daniel Fine, an energy researcher with New Mexico Tech in Socorro, in an interview with the Albuquerque Journal, said the situation is dire for the Permian Basin in West Texas and southeastern New Mexico, and for the northwestern San Juan Basin in the Four Corners region. Fine projects the total rig count for oil production in New Mexico will drop to between 50 and 60 in the coming weeks resulting in between 2,300 and 2,700 lost jobs, reflecting layoffs of 40 workers per oil rig.

According to Fine:

“The damage from this crisis will be greater and last longer than the last industry downturn in 2014-2016. Production in the Permian Basin will have to decline by at least 600,000 to 700,000 barrels of oil per day or more before the situation gets any better.”

https://www.abqjournal.com/1434329/special-session-talk-intensifies-amid-oil-price-downturn.html

COMMENTARY AND ANALYSIS

It is clear that the corona virus is a very infectious disease that is spreading like a wild fire throughput the world, the United States and now New Mexico. What is happening in the world, country and state are indeed historical in every sense of the word and cannot be downplayed. When it comes to New Mexico, the corona virus is short term compared to the effects of the oil price war on New Mexico’s economy and far more damaging on so many levels.

State officials and oil industry leaders are hoping a modest rebound in oil prices heading into summer as the corona virus contagion slows and businesses and consumer demand bounce back. For now, when it comes to New Mexico’s budget, the worst needs to be prepared for as actually happening and there is no doubt that Governor Lujan Grisham is facing a major financial and government budget crisis. In times of crisis, drastic measures at times must be taken. Convening a special session, repealing the 2020-2021 budget and going to a “zero growth budget” are such drastic measures, but indeed must be done.

Governor Lujan Grisham needs to go forwards with a special session sooner rather than later. A special session needs to be convened before the enacted budget goes into effect on July 1. Such a special session should not last more than 1 or 2 days predicated on a new budget being hammered out and agreed to before the session is called by the Governor.

For a related bog see:

Gov. Michelle Lujan Grisham To Call Special Session; When And How Is Problematic

On Thursday, March 19, the top New Mexico House Republicans urged Democrat Governor Lujan Grisham to call a special session to address the state’s impending budget crisis. The Republican lawmakers suggested that current spending levels be kept in place and argued that work begin on crafting a new budget plan for the fiscal year that starts in July 1 and based on revised revenue estimates.

On March 19, Governor Michelle Lujan Grisham sent a letter to the NM legislative leaders telling them that she will convene a special session to deal with the imploding oil prices that has caused a budget crisis for the state. The question is when and how? Before such a special session is called, and update on the States revenue estimates and the extent federal emergency assistance must he determined.

In her letter to legislators, the Governor wrote:

“Over the past days, my office has been in communication with legislative leadership and staff about the type of tools that might be available to make such a modification possible, and the legalities of these steps.”

Senator John Author Smith, the powerful Chairman of the Appropriations committee had this to say about the convening of a special session:

“We’re looking not at ‘if’ there will be a special session but when, although we first need to let things settle a bit more… We’re still trying to figure out where things are going, because we’re still on a downward trajectory and we need to wait a bit before we jump.”

WHAT THE HELL HAPPENED

On February 20, the New Mexico legislature ended having enacted a $7.6 Billion dollar budget for the 2020-2021 fiscal year. The enacted budget raised annual spending by $536 million, or by nearly 8% over last year’s budget. The increase in spending was a result of record-breaking oil production in the Permian Basin with the state originally anticipating at least an $800 million increase in state government income during the coming budget year. The legislature also enacted a separate $49.5 million in capital outlay projects. The 2020-2021 fiscal year begins July 1.

During the 30-day legislative, passage of the $7.6 billion budget plan for the 2021 budget year was predicated on oil averaging $52 per barrel. With each $1 drop a barrel in oil prices, the state loses upwards of $22 million in direct oil and gas revenue over a full year. Within one month of adjournment of the New Mexico legislature, the corona virus hit the country and hit New Mexico hard.

On March 10, Governor Michelle Lujan Grisham vetoed the $49.5 million capital spending bill citing the financial crisis over the loss of oil revenues. The Governor had until March 11 to sign off on the state’s $7.6 billion budget bill for the fiscal year that begins July 1.

On March 11, due to concerns over plummeting oil prices and the impact of the coronavirus, Lujan Grisham signed into law the $7.6 billion spending plan but not before exercising her line item veto power. The Governor line item vetoed more than $100 million worth of projects from an accompanying public works package, but such vetoes will not be enough to deal with the loss revenues to the state.

The oil price war between Russia and the Organization of Petroleum Exporting Countries (OPEC) ensued and hit hard the state’s revenue boom and it has caused the state budget surplus from oil production to evaporate. The New Mexico Legislature’s finance analysts had pegged oil prices for the budget year that ends June 30 to average $52 per barrel. The price of oil per barrel has now plummeted to $22 dollars a barrel. A $22 a barrel price will result in between $600 and $700 million in direct revenue loss to the state and nearly $1 billion of gross receipts taxes lost to the state.

WHAT, WHEN AND HOW FOR SPECIAL SESSION PROBLEMATIC

According to Governor Lujan Grisham, when she calls for the special session, it will focus on adjusting the proposed spending levels for the budget year that starts in July 1. It will also address public health needs to deal with the pandemic and crafting an economic relief package for workers, businesses and New Mexico communities.

The governor said her administration was looking into ways to possibly call a special session without all 112 legislators being present in the state Capitol itself as a precaution against the corona virus. The Governor has barred public gatherings of 10 people or more in an effort to slow the spread of the corona-virus, but a special emergency session of the legislature could be deemed and exception, but does not eliminate the effect of exposure of the virus to lawmakers.

IMPENDING OIL PRICE WAR IMPACTING STATE

In 2017, an oil production agreement was entered into between Russia and the OPEC countries. The agreement suppressed world production approaching 2 million barrels of crude oil a day. The suppressed oil production output lead to very stable oil prices of $50 to $60 a barrel of crude oil. The Russia – OPEC agreement expires on March 31, and the oil producers are expected to ramp up production that will flood the global markets with unprecedented levels of supply. A price war will ensue as the oil producers battle it out to see who will last the longest and gain most market share amid low prices.

The Russia and OPEC price war has sent Brent crude, the global benchmark, below $30 a barrel and prompted energy companies including Exxon Mobil Corp. to plan for big spending cuts. Russia and OPEC are boosting their exports just as global oil demand suffers an historic contraction due to the coronavirus pandemic. On March 17 Goldman Sachs Group Inc. the rate of petroleum consumption was dropping by about 8 million barrels a day, or about 8% of global demand. With the price war showing no sign of abating and demand falling, Wall Street is slashing its oil forecasts. Goldman is now predicting that the average will be $20 a barrel during the second quarter. Oil traders privately say the benchmark could even drop into the single digits to force some producers to shut down their wells. That’s something that hasn’t happened since the industry downturn of 1997 to 1999.

https://www.bloomberg.com/news/articles/2020-03-17/saudis-to-boost-oil-exports-to-record-10-million-barrels-a-day

No one knows for certain how long the economic shutdown from coronavirus will last, it could be weeks, months and perhaps even more. Additionally, no one knows for certain how long the price war between Russia and OPEC Countries will continue. The two events combined have pushed the price of U.S. benchmark West Texas Intermediate to $20.06 a barrel as of March 19, the lowest price per barrel of crude oil since 1998.

With the expected April surge in world oil production looming as a result of the Russia and OPEC price war, Exxon said that it’s reassessing its previously announced spending cuts. Major oil companies like Exxon-Mobil and Occidental Petroleum have announced immediate investment cuts ranging from 20% to 40% as a result of the plummeting oil prices.

Occidental has announced it will cut spending by 32%. Exxon Oil has said it will lower its global investments from $30 billion to $35 billion. It’s the Exxon cuts that will have the most impact on New Mexico’s oil royalty’s revenue stream. Exxon has already announced it plans to reduce operating rigs by 20% in Permian Basin from southwestern Texas northward into the New Mexico counties of Lea and Eddy counties.

The 20% decline represents upwards of 4 million barrels a day now produced in the Permian. As the crisis continues, further production oil production will drop in New Mexico impacting the state major revenue source. New Mexico reached a historic high of 117 operating rigs this week despite the current prices no doubt as the result of the delay in the crisis taking a strangle hold of the industry. But that is about to change dramatically.

Daniel Fine, an energy researcher with New Mexico Tech in Socorro, in an interview with the Albuquerque Journal, said the situation is dire for the Permian Basin in West Texas and southeastern New Mexico, and for the northwestern San Juan Basin in the Four Corners region. Fine projects the total rig count for oil production in New Mexico will drop to between 50 and 60 in the coming weeks resulting in between 2,300 and 2,700 lost jobs, reflecting layoffs of 40 workers per oil rig.

According to Fine:

“The damage from this crisis will be greater and last longer than the last industry downturn in 2014-2016. Production in the Permian Basin will have to decline by at least 600,000 to 700,000 barrels of oil per day or more before the situation gets any better.”

https://www.abqjournal.com/1434329/special-session-talk-intensifies-amid-oil-price-downturn.html

COMMENTARY AND ANALYSIS

The happenings in the world, country and state are indeed historical in every sense of the word. State officials and oil industry leaders are hoping a modest rebound in oil prices heading into summer as the corona virus contagion slows and businesses and consumer demand bounce back. For now, when it comes to New Mexico’s budget, the worst needs to be prepared for as actually happening and there is no doubt that Governor Lujan Grisham is facing a major crisis.

On July 1, 2020 the recently enacted state budget by the New Mexico legislature will be going into effect. Given what is going on nationally, in cities and state’s all over the country, it is likely that the effects of the corona virus health crisis will be with us for months, not weeks resulting in a dramatic effect on the State’s economy and its revenue sources. The risk of the state going into the red and spending even more than it has coming in has now increase dramatically.

The 2020-2021 budget of $7.6 billion spending is predicated on an average oil price of $50 per barrel. State spending over the last 2 years is up 20% largely because of the surplus generated by the Permian basin oil boom. The price of oil has now plummeted to $22 dollars a barrel. There is no end in sight as to how far oil prices will go down and how long it will last. You can bet the price of oil will continue to decline at least as long as the oil price war between Russia and OPEC continues.

According to the Legislative Finance Committee, a $1 change in the average annual New Mexico price of oil has around a $22 million effect on the state general fund. It is clear even to those who are deficient in math and the multiplier effect that there is a looming financial crisis.

PERMANENT FUND MUST BE AN OPTION

This year, New Mexico’s two largest permanent funds, the Land Grant Permanent Fund and Severance Tax Permanent Fund, funds will pump an all-time high of nearly $1.1 billion into state schools, hospitals and other programs in the coming 2020-2021 budget year that starts July 1. The funding is from investment gains and inflows from taxes and royalties from oil production in southeast New Mexico. But that has changed because of the pandemic.

The Land Grant Permanent Fund (LGPF), also known as the Permanent School Fund, is one of the largest funds of its kind in the country, and every year provides more than a half-billion dollars in benefits to New Mexico’s public schools, universities and other beneficiaries . In fiscal year 2020, the Land Grant Permanent Fund generated $784.2 for New Mexico Schools.

For a number of years, many have advocated that upwards of 5% more from the Land Grant Permanent Fund be allocated for early childhood care and education programs. The Land Grant Permanent Fund is often referred to as the rainy-day fund and if there ever was a rainy day in New Mexico, it is now with the historical pandemic. Now is the time to finally divert more money to address the needs of the state with the fund to substitute money allocated in the new budget for the $320 Early Childhood Trust Fund and the $17 million for the new college scholarship program.

STIMULUS NEEDED FOR NEW MEXICO ECONOMY

Many economists are deeply concerned and feel it is inevitable that the state is headed into another recession. If in fact the state suffers yet another recession, the state economy will need a major stimulus. The $49.5 million in construction capital outlay the Governor vetoed would have been such a good start. Likewise, the $100 million in line item vetoes also contained many construction projects that could have help to stimulate the economy.

The Governor’s veto of the capital outlay bill of $49.5 million with the line item veto of another $100 million is no guarantee that it is enough to avoid a state budget crisis, let alone another recession caused by the pandemic.

Although an estimated $1.7 billion in reserves has been set aside, the dramatic decline in oil prices will diminish that with only a fraction of the money accessible without legislative approval in an emergency. The 2020-2021 budget contains $536 million in spending increases, many which are recurring. The $536 million in spending increases include state employee raises such as 4% for teachers and state employees, $76 million to shore up the PERA pension funds, $320 million for Early Childhood Trust Fund, and $17 million for the new college scholarship program. The enacted budget may no longer be fiscally responsible as a result of the dramatic changes brought on the corona virus pandemic and the plunge in oil production.

CONCLUSION

In times of crisis, drastic measures at times must be taken. Convening a special session, repealing the 2020-2021 budget and going to a “zero growth budget” are such drastic measures, but indeed must be done. Further, there should be a way that a “virtual reality” legislative session can be convened where both the House and Senate members can participate by telecommunications from their offices or homes.

There is no doubt that the Governor foresees the impending wave of red ink coming her way by virtue of her $149.5 million in veto cuts and now the financial crisis brought on by the continuing plummeting oil and gas revenue. Given the impending financial crisis caused by the coronavirus, Governor Lujan Grisham knows the importance of conferring with legislative leadership and the Legislative Finance Committee to a special session. The special session needs to be convened before the enacted budget goes into effect on July 1. Such a special session should not last more than 1 or 2 days predicated on a new budget being hammered out and agreed to before the session is called by the Governor.

An option is to repeal the new 2020-2021 budget and enact a zero-growth budget making further cuts in spending and agree to make cuts in the programs the Governor was able to secure as a result of the surplus in oil revenues. Further, of the capital outlay projects vetoed by the Governor need to funded again as a means of stimulating the economy.

If the state in fact plunges into another recession, which at this point is far more likely than not, it will be deeper than the 10 year great recession that started in 2008 that had such a dramatic impact on the state. Unless Governor Lujan Grisham acts quickly with a special session before July 1 when the 2020-2021 budget takes effect, she will start to look and sound like former Republican Governor “She Who Shall Not Be Named” and be forced to make drastic cuts, implement layoffs and once again reduce the size of government during the 2020-2021 budget year. The result will once again be major in further damage to government services and inflicting more pain on New Mexico residents.

For a related blog article see:

Governor MLG Signs $7.6 Billion Budget With $149.5 Million In Vetoes; Nation And State Turn To Boosting Economy As Pandemic Gets Worse; Call Special Session: Repeal Enacted Budget, Enact “Zero” Growth Budget, Allocate More Money From Permanent Fund

On Monday, March 16, the Albuquerque City Council voted 6 to 3 in favor of amending the city’s “Emergency Powers Ordinance” to help prevent further spread of COVID-19. The updated bill expands the mayor’s power to respond to the outbreak. City Councilors Isaac Benton, Diane Gibson, Cynthia Borrego, Klarissa Peña and Lan Sena voted YES to pass the legislation while City Councilors Brook Bassan, Don Harris and Trudy Jones voted NO.

The changes to the ordinance broadens the mayor’s “emergency powers”. The Mayor can declare a public health emergency for up to 7 days. While the mayor can issue the proclamation, the City Council gave itself the authority to amend, cancel or extend the order. The city council is also given authority to reverse any decision declared by the mayor. The powers granted to the mayor would only last for 30 days, but could be lengthened or shortened by the city council.

Under the ordinance, the Mayor has the authority to close streets. The mayor can also require retailers to limit how many “medical, health and sanitation” products they sell to one person per day. The ordinance gives the Mayor authority to close places of big gatherings and gives the Mayor power to close city facilities, relocate city staff and divert funding around to deal with a crisis. The mayor can invoke specific powers such as reallocating city resources to combat the epidemic and ordering the closure of streets, day cares and places of “mass assembly” like theaters and sports venues.

MAYOR TIM KELLER DECLARES A PUBLIC HEALTH EMERGENCY

On Wednesday, March 18, less than 48 hours after the Albuquerque City Council passed the amended “Emergency Powers Ordinance”, Mayor Tim Keller declared a Public Health Emergency to deal with the corona virus in the city. The Mayor announced and signed the “Declaration of Local State of Emergency Due to Novel Corona Virus COVID-19” on a video posted on social media and distributed to the local new outlets. In the video announcement, Keller said the declaration “frees up financial resources for our city and flexibility so we can deal with this situation the best way possible.”

You can review the entire video here:

https://www.facebook.com/MayorKeller/videos/2994717313900761/UzpfSTEwNTQ4MTY4OTY6MTAyMTk0OTExNjc0ODM4OTI/

https://www.krqe.com/health/coronavirus-new-mexico/mayor-keller-declares-local-public-health-emergency-due-to-coronavirus/

https://www.abqjournal.com/1433566/keller-proclaims-emergency-in-albuquerque.html

The emergency declaration allows the Keller administration to allocate city staff as necessary to address the current COVID-19 pandemic. It will also allow for the city to make “emergency procurements” to protect the health and safety of citizens and property. It also serves as a request for state and federal assistance.

The Mayor’s “Declaration of Local State of Emergency Due to Novel Corona Virus COVID-19” makes two specific requests for financial assistance from the New Mexico Department of Homeland Security and Emergency Management and state agencies and the Federal Emergency Management Agency. The entire written Emergency Declaration can be read here:

http://www.cabq.gov/mayor/documents/emergecy-declaration.pdf

Mayor Keller’ emergency declaration does not invoke many of the powers specifically allowed in the ordinance but he did say he could issue “other orders as are imminently necessary.” In the video announcement, Keller went out of his way to emphasize that his declaration does not “do anything with respect to firearms or alcohol sales.”

In a separate press release, Mayor Keller clarified that his declaration does not

• limit the sale or transfer of firearms
• prohibit the sale of liquor
• close streets
• declare a curfew

https://www.krqe.com/health/coronavirus-new-mexico/mayor-keller-declares-local-public-health-emergency-due-to-coronavirus/

POWERS OF THE MAYOR

The government of the city of Albuquerque is often referred to as a strong Mayor, weak council, form of government because of the extent of the authority given to the Mayor under the City Charter.

Article 5, Sections 3 and 4 of City Of Albuquerque Charter provides and delineates the powers and duties of the Mayor.

Article 5, Section 3 entitled “POWERS; PERFORMANCE; APPOINTMENTS” provides:

“The executive branch of the city government is created. The office of Mayor is created. The Mayor shall control and direct the executive branch. The Mayor is authorized to delegate executive and administrative power within the executive branch. The Mayor shall be the chief executive officer with all executive and administrative powers of the city and the official head of the city for all ceremonial purposes. The Mayor shall devote full time and attention to the performance of the duties of office and shall hold no other paid public or private employment.”

Article 5, Section 4 entitled DUTIES OF THE MAYOR, provides in part as follows:

The Mayor shall:
(a) Organize the executive branch of the city;
(b) Exercise administrative control and supervision over and appoint directors of all city departments, which appointments shall not require the advice or consent of the Council except as provided in (d) of this Section;
…
[EDITORS NOTE: c, d, e, f, g, h, i, j deals with appointments of Chief Administrative Officer, Deputy Administrative Officers, the Chiefs of Police and Fire, City Attorney, City Clerk, Department Directors, Boards and Commissions, city budget preparation, reports and citizen complaints.]
…

(l) Faithfully execute and comply with all laws, ordinances, regulations and resolutions of the city and all laws of the State of New Mexico and the United States of America which apply to the city.

http://library.amlegal.com/nxt/gateway.dll/New%20Mexico/albuqwin/cityofalbuquerquenewmexicocodeofordinanc?f=templates$fn=default.htm$3.0$vid=amlegal:albuquerque_nm_mc

AMERICAN CIVIL LIBERTIES UNION RAISES OVERREACH CONCERNS

On March 17, the local chapter of the American Civil Liberties Union in a statement issued said Albuquerque’s newly approved emergency powers ordinance may be an “overreach.” In a statement issued by Peter Simonson, executive director of the ACLU of New Mexico, the ACLU said the ordinance passed by the city council is too vague, particularly in defining a “public health emergency” and a “reasonable threat,” which the organization said could allow the mayor to invoke “sweeping powers to shut down businesses and ban people from public spaces in response, for example, to a common flu outbreak.”

Below is the full statement released by Peter Simonson, executive director of the ACLU of New Mexico:

“We recognize the very real fear and concern gripping our communities during this uncertain time and appreciate the efforts of elected officials to contain the spread of COVID-19. As we confront this pandemic, some measures, grounded in science and public health, must be taken to protect the health, safety, and civil liberties of us all.

In times of crisis, we become susceptible to rash legislation that grants excessive power to government. One need only look to the USA Patriot Act for an example of how the rush to address the community’s fear can result in the making of law that causes unintended consequences and widespread abuse for years to come. Once such changes make their way into our laws, they are onerous to reverse. That’s why other local governments considering legislation like Albuquerque’s should proceed with caution and concern for future generations. Down the line, administrations that are hostile to civil liberties may use this power in unintended ways.”

https://www.aclu-nm.org/en/news/aclu-nm-statement-albuquerque-city-councils-decision-broaden-mayors-power-during-public-health

https://www.abqjournal.com/1433173/aclu-albuquerques-emergency-powers-law-may-be-an-overreach.html

RIO GRANDE FOUNDATION FILES COMPLAINT ALLEGING VIOLATION OF OPEN MEETINGS ACT

The Rio Grande Foundation is an economic policy think tank located in Albuquerque, New Mexico. The Foundation is affiliated with the U.S. nationwide State Policy Network. It was founded in 2000 by Hal Stratton, a former Republican NM State representative and Republican NM Attorney General of New Mexico, and Harry Messenheimer, an economist then at George Mason University. Paul Gessing became president of the foundation in 2006.

The policy goals of The Rio Grande Foundation includes supporting tax cuts, reduced government spending, school choice, specifically by means of tax credits or school vouchers. It opposes the use of eminent domain and supports expansive private-property rights. The foundation is considered by many as a government watch dog group of city, county and state government action. The Foundation is a 501(c)(3) charitable, tax-exempt, non-profit organization.

https://riograndefoundation.org/about/

https://en.wikipedia.org/wiki/Rio_Grande_Foundation

On Monday, March 16, the Albuquerque City Council convened a meeting where the general public was not allowed to sit in the public audience area of the council chambers. The City Council Chamber doors were closed to the public, audience seats were vacant, all as a precaution to stop the spread of the coronavirus. Only members of the media, city councilors and some city workers were allowed inside during the meeting. Outside of the council chambers, APD Police were stationed to keep people out or checking people’s credentials who were trying to get in.

On March 18, the Rio Grande Foundation filed a lawsuit in New Mexico State District Court alleging that the City violated the New Mexico Open Meetings Act by holding the City Council meeting March 16, without proper notice and without conducting such according to the provisions of the Open Meetings Act thereby violating the Due Process owing to the citizens of Albuquerque. On Friday, March 13, 2020, the City Council announced that it would be holding a closed meeting on Monday, March 16, 2020 and the public was prohibited from attending.

The Open Meetings Act is clear when it says “All meetings … of a quorum of members of policy making body of any … municipality … are declared to be public meetings open to the public at all times …” There are no exceptions that would permit the city council to bar the public from a meeting such as they did.

The Open Meetings Act is equally clear when it says “No resolution, rule, regulation, ordinance or action of any board, commission, committee or other policy making body shall be valid unless taken or made at a meeting held in accordance with the requirements [the Open Meetings Act].” In other words, where the Open Meetings Act is violated , the actions of the policy making body are “void”.

The Open Meeting Act provides that any person can apply to enforce the purpose of the Open Meetings Act, by injunction, mandamus or other appropriate order. If they prevail, the court shall award costs and reasonable attorney fees to any person who is successful in bringing a court action to enforce the provisions of the Open Meetings Act. Conversly, if the public body defendant prevails it can be awarded attorneys fees. (Section 10-15-3 C, NMSA 1978)

The New Mexico Attorney General’s Office publishes a “Compliance Guide For The Open Meetings Act”, that also contains the full act and commentary with a checklist for compliance, and it can be found here:

https://www.nmag.gov/uploads/files/Publications/ComplianceGuides/Open%20Meetings%20Act%20Compliance%20Guide%202015.pdf

GOVERNOR MICHELLE LUJAN GRISHAM HOLDS PRESS CONFERENCE

It was on March 11, Governor Michelle Lujan Grisham became the first New Mexico Governor to invoke the 2003 Public Health Emergency Response Act (PHERA), issuing an Executive Order declaring a “public health emergency” giving her administration broad powers to deal with the coronavirus. The governor urged people to avoid public gatherings, sanitize common surfaces and minimize contact with other individuals, even if it means staying home from church or going out less often in order to slow transmission of the virus. During a press conference declaring the emergency, Lujan Grisham said New Mexico had 2,400 tests available to determine who has the coronavirus.

https://www.abqjournal.com/1430120/nm-has-three-confirmed-cases-of-coronavirus.html

On March 18, in a very dramatic and stark contrast to Mayor Tim Keller’s controlled video signing ceremony, Governor Mitchelle Lujan Grisham held a sweeping and very lengthy press conference in the New Mexico House Chambers. The Governor stood for at least an hour takinq questions from all media.

The Governor moved New Mexico closer to a quarantine in an attempt to keep the coronavirus under control, closing restaurants and bars to in-person dining while temporarily shutting down theaters, indoor malls, gyms and resort spas. The closures also include prohibiting public gatherings of 10 or more people and barring shoppers from hoarding supplies. The closures are the latest in an escalating series of actions ordered by the Lujan Grishham in an effort to slow the spread of the virus. In the days after New Mexico’s first case of coronavirus was announced, Lujan Grisham’s administration closed public schools for three weeks, directed most state personnel to work from home and ordered a ban on large public gatherings.

During her press conference in the state capital, the Governor had this to say:

“There are still far too many New Mexicans that are coming into contact with one another. ”

Testing in the state for the virus has escalated substantially. The number of coronavirus cases in New Mexico has reached 28 by Wednesday, March 18 when 5 additional cases were confirmed. To date, there have been about 1.2 positive cases in New Mexico for every 100 people tested. One of the new cases confirmed involved a woman who had not traveled. According to Department of Health deputy epidemiologist Chad Smelser, hat is significant because all of the state’s previous cases of COVID-19 had been attributed either directly to travel or to contact with people who were infected while traveling. Smeler opined:

“That means to us, there is spread in the community,”

https://www.abqjournal.com/1433536/gov-to-provide-update-on-covid-19.html

COMMENTARY AND ANALYSIS

It is clear that the corona virus is a very infectious disease that is spreading like a wild fire throughput the world, the United States and now New Mexico. Given the magnitude of what is happing with the corona virus, it is understandable that the Albuquerque City Council gave the Mayor expanded authority. It is also very understandable that Mayor Keller wanted to make an Emergency Declaration even before the ink was dried on the enacted legislation and the city clerk’s signature on the transmittal notice of enactment.

AVOIDING BEING QUESTIONED

The fact that Mayor Keller proclaimed and signed his “Declaration of Local State of Emergency Due to Novel Corona Virus COVID-19” on a video posted on social media and then distributed to the local new outlets raised more than a few eyebrows within the media and from political observers. The “signing ceremony” video only had Keller speaking with no public safety officials and Keller looking into the camera all alone sitting at a table and signing the declaration as he spoke. Keller’s message appeared very well rehearsed, but slick none the less.

One reason for concern is that Keller has a penchant for almost daily press conferences always surrounded by others. By not holding a press conference, Keller was able to avoid any and all questions from the media. It allowed him to completely control his message and allowed him to be very vague, yet assuring on what the city will actually be doing. He did not get into any detail as to what will now be done by the city. Absent was any information as to what the departments under his control, such as the police, fire, family community services ect., would be doing to implement his order.

Mayor Keller went out of his way in making the announcement backed up with a press release that the new legislation would not allow him to confiscate guns or halt alcohol sales. The new legislation does not allow it either. The need to address the gun and alcohol issues was the result of severe criticism and false information spread about both issues. Keller was forced to explain the primary purpose for the declaration was to give him more flexibility in freeing up financial resources to address the coronavirus threat.

SHARP CONTRAST IN LEADERSHIP STYLES

In a very dramatic move on the same day as Mayor Keller’s controlled video signing ceremony, Governor Michelle Lujan Grisham held a sweeping and very lengthy press conference in the New Mexico House Chambers to give an update on her administrations efforts. She stood for at least an hour takinq questions from all media. The leadership that the Governor exhibited was in sharp stark contrast to that which was exhibited by Mayor Tim Keller. She was poised, well versed and in command of the situation. She appeared comfortable and reassuring. Keller’s controlled video announcement on the other hand appeared to be more of a taped video audition for a television pilot where he would be playing the role of the mayor.

LEGITIMATE CONCERNS

Both the American Civil Liberties Union and the Rio Grande Foundation have raised very serious and very legitimate concerns. In time of crisis, cool heads must prevail otherwise it only makes matters worse and mistakes are made in a panic. Without a press conference, Keller could not be confronted and was able to avoid concerns raised by the ACLU and the lawsuit filed by the Rio Grande Foundation that the Council had violated the open meetings act.

It was a major mistake for the city council to rush in and enact the amendments to the “Emergency Powers Ordinance” reflecting a knee jerk reaction to the point that they ignored the “open meetings” act. It was also a mistake for Mayor Keller to sign off on the changes to the ordinance and he should have vetoed it. It is more likely than not that the District Court will find that the Albuquerque City Council did indeed violate the New Mexico Open Meetings Act, and if so, the ordinance enacted will be held void and unenforceable.

COUNCIL POWER GRAB

It is likely the Mayor under the city charter has emergency authority powers to do much of what is contained in his emergency declaration when it comes to allocating city staff and resources as necessary to address the current COVID-19 pandemic. Those inherent powers would also likely include making “emergency procurements”, likely subject to city council approval, to protect the health and safety of citizens and property.

The Emergency Powers Ordinance as amended by the City Council gives the City Council the authority to amend, cancel or extend the Mayor’s order, which amounts to nothing more than a “power grab” by the city council. The City Council can now very easily usurp the authority of the Mayor once an Emergency Declaration is proclaimed.

CONCLUSION

To those who are critical of the American Civil Liberties Union and the Rio Grande Foundation, what is important to remember is that elected officials are not above the law and our civil rights must be protected. The enactment of the Open Meetings Act by the New Mexico legislature was motivated by the belief that the democratic ideal is best served by a well-informed public. Sunshine laws generally require that public business be conducted in full public view, that the actions of public bodies be taken openly, and that the deliberations of public bodies be open to the public.

FOR A RELATED BLOG ARTICLE SEE:

March 16 City Council Meeting Violated New Mexico Open Meetings Act By Excluding Public Attendance; Criminal Penalties Provided; City Council’s Enactment of Ordinance Giving ABQ Mayor “Emergency Powers” Void

On February 20, the New Mexico legislature within a few hours before adjourning enacted a $7.6 Billion dollar budget for the fiscal year that begins on July 1. It raised annual spending by $536 million, or by nearly 8% over last year’s budget. The increase in spending was a result of record-breaking oil production in the Permian Basin with the state anticipating at least an $800 million increase in state government income during the coming budget year. The legislature also enacted a separate $49.5 million in capital outlay projects.

The increase spending of $536 million includes funding for Governor Lujan Grisham’s major priorities. An Early Childhood Trust Fund of $320 million was approved with the goal of putting $30 million annually toward the cause of early childhood programs needed for many years. The new budget includes $17 million for the new college scholarship program sought by Lujan Grisham which is much less than the Governor had initially requested.

The goal is to provide need-based tuition aid for full-time students who already qualify for a separate, lottery-funded scholarship program. The Governor supported the Public Employees Retirement Association (PERA) reform legislation that is aimed at erasing the state pension system’s $6.6 billion unfunded liability. The new budget allocates $76 million to help improve the financial health of the pension funds.

Just when things were looking great with respect to oil and gas royalties to finance state government, BAM the corona virus hits, a global oil price war ensues, and New Mexico gets hit in the process, all within one month since the adjournment of the New Mexico legislature. The global oil price war has hit hard the state’s revenue boom and it has caused the state budget surplus to evaporate. The New Mexico Legislature’s finance analysts had pegged oil prices for the budget year that ends in June to average $52 per barrel. The price of oil per barrel has now plummeted to $33.19 dollars a barrel.

https://markets.businessinsider.com/commodities/oil-price?type=wti

$100 MILLION LINE ITEM VETOS AND $49. 5 MILLION CAPITAL OUTLAY VETO

On March 10, Governor Michelle Lujan Grisham vetoed the $49.5 million capital spending bill citing the financial crisis over the loss of revenues. On March 11, due to concerns over plummeting oil prices and the impact of the coronavirus, Lujan Grisham signed into law the $7.6 billion spending plan but not before exercising her line item veto power. The Governor line item vetoed more than $100 million worth of projects from an accompanying public works package.

Among the projects vetoed by Lujan Grisham were proposed school improvements, tribal building repairs, road renovations, street signs and renovations to a Family and Community services building in Albuquerque. On March 11, the Governor announced that 3 cases of corona virus had been found in New Mexico, all three-travel related. As of March 17, a total of 23 cases have been confirmed and many more are expected.

In her veto message of the capital outlay projects, Governor Lujan Grisham said:

“We do not yet know the degree to which [the coronavirus] and declining oil prices will impact our state’s economy. … Given this uncertainty, I bear a heightened obligation to ensure that all significant expenditures constitute a demonstrably sound investment in New Mexico.”

According to the Governor’s Office the combined savings will amount to roughly $150 million in order to have more money available in cash reserves in the event projected revenue levels do not materialize.

IMPACT OF REDUCED OIL PRICES

According to the Legislative Finance Committee (LFC), a $1 change in the average annual New Mexico price of oil has an impact of roughly $22 million on the state general fund. The LFC also said money generated from taxes and royalties on oil and natural gas accounted for roughly 36% of New Mexico’s total revenue for last year. For the enacted budget, oil prices were projected to average $50 per barrel.

According to the Governor’s Office, if oil prices were to hover at $30 per barrel through June, that would mean $138 million less in state revenue than projected for this fiscal year. Upwards of 25% of the state’s spending contained in its budget is for reserve funds

The Governor had until March 11 to sign off on the state’s $7.6 billion budget bill for the fiscal year that begins July 1. The state budget crafted and enacted by the 2020 legislature is heavily reliant on the historical oil and gas generated surplus revenue. The new budget contains a $536 million increase in spending over last year’s budget. By law, the New Mexico Legislature must enact a balanced budget. Deficit spending is strictly prohibited.

Between the veto of the $49.5 capital improvements and the line item vetoes of $100 Million in the budget means more money will be available in cash reserves in case projected revenue levels do not materialize. The state is estimated to have $1.7 billion in cash reserves when the current budget year ends in June. The $1.7 billion cash reserve figure could end up being much lower if oil prices do not rebound.

https://www.abqjournal.com/1429497/governor-vetoes-infrastructure-bill-as-oil-prices-plummet.html

Republican lawmakers accused Lujan Grisham of putting her initiatives above the state’s aging road infrastructure with her budget line item vetoes, even though the budget she signed includes $180 million for statewide highway construction and repairs.

https://www.abqjournal.com/1430331/governor-signs-budget-axes-dozens-of-infrastructure-projects.html?utm_source=newsletter&utm_medium=email&utm_campaign=news-alert

TRUMP TURNS ATTENTION TO NATIONS ECONOMY

As financial analysts warn the country is surely entering a recession, the Trump Administration is grappling with the enormous political undertaking with echoes of the 2008 financial crisis. On March 17, President Trump pressed for enactment of a $1 trillion stimulus package, possibly to include $1,000 direct payments to individual Americans, to blunt the economic impact from the coronavirus outbreak.

Under the plan, high wage earners might not qualify for payments, which could be sent within the next two weeks, according to Treasury Secretary Steven Mnuchin. Trump asked Congress to speed emergency checks to Americans, enlisted the military for MASH-like hospitals and implored ordinary people, particularly socially active millennials, to do their part by staying home to stop the spread of the coronavirus.

https://apnews.com/22b4db74a897c8803d228269827d8612

GOVERNOR MLG TURNS ATTENTION TO STATE ECONOMY

On March 17, the Administration of Gov. Michelle Lujan Grisham announced expanded expanded economic relief plans. The administration made it known that even more drastic action may be taken as the corona virus pandemic continues to take its toll on the states economy.

According to Workforce Solutions Secretary Bill McCamley, the state has put on hold job search requirements for unemployment benefit recipients, launched new business loan programs and is pursuing other possible steps. McCamley said his agency received about 4,000 phone calls from New Mexicans seeking to file for unemployment benefits, or extend their benefits in just one day.

The state has issued a directive requiring that bars and restaurants operate at no more than 50% of capacity and the directive is expected to have a direct impact on the restaurant and hospitality industry and contribute to a major surge in unemployment applications. The state has an unemployment reserve fund approaching $465 million and there is no doubt it could be depleted seriously with the doubling and tripling of unemployment application.

According to state officials, the Department of Workforce Solutions has asked President Donald Trump’s administration to activate a “disaster unemployment assistance program” that would allow New Mexico’s estimated 62,000 self-employed residents to access jobless benefits. State leaders are also discussing using money from a roughly $5 billion New Mexico permanent fund to expand a program that provides low-interest loans to businesses.

https://www.abqjournal.com/1433365/state-turns-attention-to-boosting-economy.html

Governor Lujan Grisham announced several commercial loan programs, including the state participation in a federal Small Business Association disaster program. The program offers loans of up to $2 million and making some of a state “closing fund” for business expansion and relocation available for business loans. On March 17, The Governor issued the following statement announcing New Mexico had become one of the nation’s first to qualify for the federal loan program:

“The state has qualified for the Small Business Administration (SBA) Disaster Loan Assistance program to assist businesses negatively impacted by the COVID-19 public health emergency. . .The SBA is offering low-interest federal disaster loans up to $2M for working capital to small businesses and non-profit organizations suffering substantial economic injury. . .The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The interest rate for non-profits is 2.75%.”

COMMENTARY AND ANALYSIS

On July 1, 2020 the recently enacted state budget by the New Mexico legislature will be going into effect. Given what is going on nationally, in cities and state’s all over the country, it is likely that the effects of the corona virus health crisis will be with us for months, not weeks resulting in a dramatic effect on the State’s economy and its revenue sources. The risk of the state going into the red and spending even more than it has coming in has now increase dramatically.

The 2020-2021 budget of $7.6 billion spending is predicated on an average oil price of $50 per barrel. State spending over the last 2 years is up 20% largely because of the surplus generated by the Permian basin oil boom. The price of oil has now plummeted to less than $30 dollars a barrel and there is no end in sight as to how far it will go and how long it will last. You can bet the price of oil will continue to decline at least as long as the oil price war between Russia and Saudi Arabia continues.

According to the Legislative Finance Committee, a $1 change in the average annual New Mexico price of oil has around a $22 million effect on the state general fund. It is clear even to those who are deficient in math and the multiplier effect that there is a looming financial crisis.

PERMANENT FUND AN OPTION

This year, New Mexico’s two largest permanent funds, the Land Grant Permanent Fund and Severance Tax Permanent Fund, funds will pump an all-time high of nearly $1.1 billion into state schools, hospitals and other programs in the coming 2020-2021 budget year that starts July 1. The funding is from investment gains and inflows from taxes and royalties from oil production in southeast New Mexico. But that may change because of the pandemic.

The Land Grant Permanent Fund (LGPF), also known as the Permanent School Fund, is one of the largest funds of its kind in the country, and every year provides more than a half-billion dollars in benefits to New Mexico’s public schools, universities and other beneficiaries . In fiscal year 2020, the Land Grant Permanent Fund generated $784.2 for New Mexico Schools.

For a number of years, many have advocated that upwards of 5% more from the Land Grant Permanent Fund be allocated for early childhood care and education programs. The Land Grant Permanent Fund is often referred to as the rainy-day fund and if there ever was a rainy day in New Mexico, it is now with the historical pandemic. Now is the time to finally divert more money to address the needs of the state with the fund to substitute money allocated in the new budget for the $320 Early Childhood Trust Fund and the $17 million for the new college scholarship program.

STIMULUS NEEDED FOR NEW MEXICO ECONOMY

Many economists are deeply concerned that the state is headed into another recession. If in fact the state suffers yet another recession, the state economy will need a major stimulus. The $49.5 million in construction capital outlay the Governor vetoed would have been such a good start. Likewise, the $100 million in line item vetos also contained many construction projects that could have help to stimulate the economy.
The Governor’s veto of the capital outlay bill of $49.5 million with the line item veto of another $100 million is no guarantee that it is enough to avoid a state budget crisis, let alone another recession caused by the pandemic.

Although an estimated $1.7 billion in reserves has been set aside, the dramatic decline in oil prices will diminish that with only a fraction of the money accessible without legislative approval in an emergency. The 2020-2021 budget contains $536 million in spending increases that are recurring costs. The $536 million in spending increases include state employee raises such as 4% for teachers and state employees, $76 million to shore up the PERA pension funds, $320 million for Early Childhood Trust Fund, and $17 million for the new college scholarship program. The enacted budget may no longer be fiscally responsible as a result of the dramatic changes brought on the corona virus pandemic and the plunge in oil production.

CONCLUSION

There is no doubt that the Governor foresees the impending wave of red ink coming her way by virtue of the $149.5 million in veto cuts. Given the impending financial crisis caused by the coronavirus, Governor Lujan Grisham would be wise to confer with legislative leadership and the Legislative Finance Committee and determine if a “Special Session” needs to be convened. There is still time for a Special Session before the enacted budget goes into effect on July 1. Such a special session should not last more than 2 days predicated on a new budget being agreed to and hammered out before the session is called by the Governor.

An option is to repeal the new 2020-2021 budget and enact a zero-growth budget making further cuts in spending and agree to make cuts in the programs the Governor was able to secure as a result of the surplus in oil revenues. Further, many of the vetoes of capital outlay could be re enacted again as a means of stimulating the economy.

If the state in fact plunges into another recession as many predict and deeper than the 10 year great recession that started in 2008, Governor Lujan Grisham will start to look and sound like former Republican Governor “She Who Shall Not Be Named”. Governor Lujan Grisham, unless she acts quickly with a special session working with the legislature, may be force to make drastic cuts, implement layoffs and once again reduce the size of government all during the 2020-2021 budget year resulting in further damage to government services and inflicting more pain on New Mexico residents.

On Monday, March 16, in an extraordinary first for the Albuquerque City Council, the general public was not allowed to sit in the public audience area of the council chambers. The City Council Chamber doors were closed to the public, audience seats were vacant, all as a precaution to stop the spread of the coronavirus. Only members of the media, city councilors and some city workers were allowed inside during the meeting. Outside of the council chambers, APD Police were stationed to keep people out or checking people’s credentials who were trying to get in.

Albuquerque City Councilor Diane Gibson asked the question:

“Keeping the general public out of this meeting and it feels weird just to have us, right?”

The city council meeting was broadcast on GOV TV and the public could watch the meeting online. For those who wanted to participate in public comment, they could have emailed, faxed or hand delivered their comments to the councilors before the meeting. According to City Council representatives, the City Council staff will be putting together a large packet of public comment that will be available for inspection.

https://www.krqe.com/top-stories/city-council-to-decide-on-expanding-emergency-powers-to-mayor/

CITY COUNCIL VIOLATES NEW MEXICO OPEN MEETINGS ACT

The “Open Meetings Act,” NMSA 1978, Sections 10-15-1 to 10-15-4, is known as a “sunshine law.” Virtually every state has such a law, which are essentially motivated by the belief that the democratic ideal is best served by a well-informed public. Sunshine laws generally require that public business be conducted in full public view, that the actions of public bodies be taken openly, and that the deliberations of public bodies be open to the public. It is the New Mexico Attorney General who is authorized by Section 10-15-3(B) of the Act to enforce its provisions.

The March 16 City Council meeting and the votes taken were in clear violation of the New Mexico Open Meetings Act.

Section 10-15-1 A and B of the New Mexico Open Meetings Act provides as follows:

10-15-1. Formation of Public Policy

A. In recognition of the fact that a representative government is dependent upon an informed electorate, it is declared to be public policy of this state that all persons are entitled to the greatest possible information regarding the affairs of government and the official acts of those officers and employees who represent them. The formation of public policy or the conduct of business by vote shall not be conducted in closed meetings. All meetings of any public body except the legislature and the courts shall be public meetings, and all persons desiring shall be permitted to attend and listen to the deliberations and proceedings.

“B. All meetings of a quorum of members of any board, commission, administrative adjudicatory body or other policy making body of any state agency, any agency or authority of any county, municipality, district or any political subdivision, held for the purpose of formulating public policy, including the development of personnel policy, rules, regulations or ordinances, discussing public business or for the purpose of taking any action within the authority of or the delegated authority of any board, commission or other policy making body are declared to be public meetings open to the public at all times, except as otherwise provided in the constitution of New Mexico or the Open Meetings Act. No public meeting once convened that is otherwise required to be open pursuant to the Open Meetings Act shall be closed or dissolved into small groups or committees for the purpose of permitting the closing of the meeting.”

The Attorney General’s “Compliance Guide For The Open Meetings Act” provides the following commentary:

“This Subsection [B] states the basic open meetings policy of the state. The Act generally prohibits a public body from conducting public business … in closed meetings and requires that such business be conducted by the public body acting as a whole at meetings open to all persons who wish to attend and listen. The Act requires members of a public body to conduct business in public and to allow all persons desiring to attend and listen to the proceedings.”

It is also clear that the resolutions and ordinances enacted by the City Council at its March 16 meeting were void. Section 10-15-3 of the Open Meetings Act provides as follows:

“Invalid Actions; Standing. A. No resolution, rule, regulation, ordinance or action of any board, commission, committee or other policymaking body shall be valid unless taken or made at a meeting held in accordance with the requirements of NMSA 1978, Section 10-15-1. Every resolution, rule, regulation, ordinance or action of any board, commission, committee or other policymaking body shall be presumed to have been taken or made at a meeting held in accordance with the requirements of NMSA 1978, Section 10-15-1.”

The New Mexico Open Meetings Act also provides for criminal penalties. Section 10-15-4 of the Open Meetings Act provides as follows:

“Criminal Penalties

Any person violating any of the provisions of NMSA 1978, Section 10-15-1 or 10-15-2 is guilty of a misdemeanor and upon conviction shall be punished by a fine of not more than five hundred dollars ($500) for each offense.”

The Attorney General’s “Compliance Guide For The Open Meetings Act” provides the following commentary:

“If, after investigating charges that the Act has been violated, the Attorney General finds that the charges are valid and substantial, the Attorney General may initiate a criminal prosecution against each of those persons responsible for the violation. The public officers or employees charged may be held personally responsible for violations of the Act if it is shown that they intentionally acted in a manner that violated the Act. In addition to the members of the public body, other officials responsible for implementing the Act’s provisions may be found liable.”

The New Mexico Attorney General’s Office publishes a “Compliance Guide For The Open Meetings Act”, that also contains the full act and commentary with a checklist for compliance, and it can be found here:

https://www.nmag.gov/uploads/files/Publications/ComplianceGuides/Open%20Meetings%20Act%20Compliance%20Guide%202015.pdf

COUNCIL VOTES TO EXPAND MAYOR’S EMERGENCY POWERS

During the March 16 meeting, the Albuquerque city council voted 6 to 3 in favor of amending the city’s “Emergency Powers Ordinance” to help prevent further spread of COVID-19. The updated bill expands the mayor’s power to respond to the outbreak. City Councilors Isaac Benton, Diane Gibson, Cynthia Borrego, Klarissa Peña and Lan Sena voted Yes to pass the legislation while City Councilors Brook Bassan, Don Harris and Trudy Jones voted NO.

It was on March 11, Governor Michelle Lujan Grisham became the first New Mexico Governor to invoke the 2003 Public Health Emergency Response Act (PHERA), issuing an Executive Order declaring a “public health emergency” giving her administration broad powers to deal with the coronavirus.

Passed in the 1960s by the then 5 member city commission, the Civil Emergency Powers ordinance was initially passed to address potential widespread rioting. The original bill includes many provisions that would be unenforceable today, such as closing down gun stores and gas stations.

The city’s Civil Emergency Powers currently limits emergency powers to situations like riots and natural disasters. The amendments essentially update the existing ordinance adding a public health provision to the provisions governing disasters like earthquakes and riots. The rules governing disasters like earthquakes and riots do not apply to this type of situation.

The new ordinance broadens the mayor’s “emergency powers”. Under the ordinance, the mayor could invoke specific powers like reallocating city resources to combat the epidemic and ordering the closure of streets, day cares and places of “mass assembly” like theaters and sports venues. The mayor could also require retailers to set limits on how many “medical, health and sanitation” products they sell to one person per day.

Under the changes to the “Emergency Powers Ordinance” the Mayor can declare a public health emergency for up to 7 days. While the mayor can issue the proclamation, the City Council is given the authority to amend, cancel or extend the order. The city council is also given authority to reverse any decision declared by the mayor. The powers granted to the mayor would only last for 30 days, but could be lengthened or shortened by the city council.

https://www.abqjournal.com/1432865/city-council-approves-emergency-powers.html

The Mayor will now have the authority to close streets, limit the quantities of certain items sold at stores and close places where big gatherings happen such as places of worship. It also gives the Mayor power to close city facilities, relocate city staff and divert funding around to deal with a crisis. However, the ordinance does not let a Mayor seize private property or put individuals in quarantine. The emergency power would join others the mayor has like declaring a civil emergency if there is a riot or a natural disaster.

City spokeswoman Jessie Damazyn issued the following statement on behalf of Mayor Keller’s Office:

“If we declare a public health emergency, it will be to tap into state and federal funding and allocate resources to limit the impact of COVID-19 on our entire community. The declaration would be in step with the President of the United States, the Governor of New Mexico, dozens of other states and cities around the country including the Mayor of Rio Rancho who have already made such declarations. The legislation [passed] … tonight, does not ban gun sales, confiscate guns, prohibit liquor sales, nor does it implement a curfew or close streets, and the Mayor’s declaration will not either. Anyone suggesting otherwise is wrong, period. Stoking fear and mistrust will only harm our efforts to fight this public health emergency as a unified community.”

https://www.kob.com/albuquerque-news/albuquerque-city-council-votes-in-favor-of-amending-emergency-powers-ordinance/5675979/?cat=500

OPPOSITION CONCERNS

Paul Gessing, President of the conservative Rio Grande Foundation, expressed opposition to the ordinance raising concerns about city leaders abusing the bill’s power and had this to say:

“I think everybody is willing to compromise. We don’t want to act rationally in ways that dramatically empower government and policy makers in ways that¬—maybe they’re best of actors—but they’re potentially giving them abusive powers to act in the future and I don’t want that to happen.”

Still others interviewed expressed objections that barring the public from the meeting violated constitutional rights. Some criticized the city’s decision to hold the meeting without an ordinary public audience. Terri O’Hare, a local advocate for the disabled community, said it essentially silenced community input and had this to say:

“If public comments remain shut down to just emails/online forms/letters written to councilors, with the hope they get read and not shuffled to some folder, our city suffers. … Our civil rights suffer and the public’s right to transparent and active participation in government takes a big hit.”

City Attorney Esteban Aguilar Jr. offered his legal opinon to the council and said the council had acted legally and appropriately.

https://www.krqe.com/top-stories/city-council-to-decide-on-expanding-emergency-powers-to-mayor/

AG HECTOR BALDERAS ISSUES GUIDELINES TO PUBLIC ENTITIES REGARDING OPEN MEETINGS ACT AND INSPECTION OF PUBLIC RECORDS ACT COMPLIANCE DURING COVID-19 STATE OF EMERGENCY

On Tuesday, March 17, the very day after the City Council meeting, Attorney General Hector Balderas issued “Guidance to Public Entities Regarding Open Meetings Act and Inspection of Public Records Act Compliance During COVID-19 State of Emergency” following is the press release in full:

For Immediate Release:

March 17, 2020
Contact: Matt Baca — (505) 270-7148

AG Balderas Issues Guidance to Public Entities Regarding Open Meetings Act and Inspection of Public Records Act Compliance During COVID-19 State of Emergency

Santa Fe,NM—Today [March 17], Attorney General Balderas issued the following guidance to public entities across the State of New Mexico regarding their ongoing obligations to comply with the Open Meetings Act (OMA) and the Inspection of Public Records Act (IPRA) during the state of emergency in New Mexico.

“The health and safety of New Mexican families is the number one priority across our State, but government must remain transparent and accountable, especially during a state of emergency,” said Attorney General Balderas. “All public entities should follow the guidance of public health officials and make any necessary adjustments to ensure compliance with our transparency laws during this time.”

The Office of the Attorney General continues to be available to any public entity that has questions or concerns about OMA and IPRA compliance, and will also continue to take OMA and IPRA complaints during the state of emergency.”

PRECAUTIONS ALREADY IMPLEMENTED BY CITY

City officials have already taken precautions to deal with the health crisis. The city had closed the Main Library in Downtown Albuquerque for a “deep cleaning” after it was reported that a library employee had a “rumored potential exposure” to the virus. The library has opened again.

On March 12, City and county officials announced activation of its “Emergency Operations Center and Joint Operations Center” to coordinate the local response to the virus.

https://www.abqjournal.com/1430500/new-bill-would-give-abq-mayor-more-emergency-powers.html

On March 15, the City of Albuquerque announced that it would continue essential services while maximizing distance between employees. It has also announced that all BioPark facilities will be closed through April 15.

On March 15, the City of Albuquerque announced the West side Emergency Housing Center will be kept open 24-hours a day until further notice. The center has begun screening and testing people who are using the shelter.

COMMENTARY AND ANALYSIS

The March 16 meeting of the City Council occurred the very day before Attorney General Balderas issued his guidelines. Notwithstanding, the City Council meeting did not comply even remotely with the requirements of a “virtual meeting” even had they tried because the chambers do not have video or telephone conference capabilities.

The Open Meetings Act is clear when it says “All meetings … of a quorum of members of policy making body of any … municipality … are declared to be public meetings open to the public at all times …” There is no “coronavirus” or disease exception, and there is no “declaration of health emergency” exception that would permit the city council to bar the public from a meeting.

The Open Meetings Act is equally clear when it says “No resolution, rule, regulation, ordinance or action of any board, commission, committee or other policy making body shall be valid unless taken or made at a meeting held in accordance with the requirements [the Open Meetings Act].”

It is embarrassing and damn pathetic that not a single member of the Albuquerque City Council, especially Republican City Councilor Don Harris, who is a licensed New Mexico Attorney, did not question the propriety of excluding the public from the March 16 regularly scheduled city council meeting that was publicized and where the agenda was released as required by the Open Meetings Act. Further, the fact that the city council meeting was broadcast on GOV TV and the public could watch the meeting online and email, fax or hand deliver their comments to the councilors before the meeting started does not cut it and does not satisfy the requirements of the Open Meetings Act: that public are allowed to attend attend and listen to the deliberations and proceedings in person.

When City Councilor Diane Gibson asked the question “Keeping the general public out of this meeting and it feels weird just to have us, right?”, it was at worse an admission of guilt and at best an admission against interest. City Councilor Diane Gibson never disappoints being a total embarrassment to her constituents showing some of the highest level of ignorance of any city councilor, especially when it comes to the law.

https://www.krqe.com/top-stories/city-council-to-decide-on-expanding-emergency-powers-to-mayor/

According to City Council President Pat Davis, while the mayor can issue the proclamation, the City Council has the authority to amend, cancel or extend such an order and Davis boldly proclaimed the ordinance has “some of the most robust check-and-balance structures in city law.” Davis needs to leave the practice of law to licensed attorneys to avoid making a fool of himself. The actions of City Council President Pat Davis, who presided over the meeting and not knowing the council was in violation of the open meeting act, can be fully explained by his well earned reputation for knee jerk reactions based upon news events, his arrogance, and ill-advised actions of not knowing what he is doing.

What is extremely embarrassing, is that Mayor Keller’s appointed City Attorney and the Chief Administrative Officer, both who are licensed New Mexico attorneys, were attendance, sitting at the administration’s table directly in front of the council, and they did not object to the public being prohibited from attending the meeting. City Attorney Esteban Aguilar Jr. went so far to offer his legal opinion to the council and said the council had acted legally and appropriately. Apparently City Attorney Aguilar is not aware of the New Mexico Open meetings act.

Not that it is likely it will happen, but Attorney General Hector Balderas could initiate a criminal prosecution against each of those persons responsible for the violation. In other words, the entire Albuquerque City Council could be charged criminally.

EXPANDING EMERGENCY POWERS OF MAYOR

It is clear that the corona virus is a very infectious disease that is spreading like a wild fire throughput the world, the United States and now New Mexico. Given the magnitude of what is happing with the corona virus, it is understandable that the Albuquerque City Council would like to give the Mayor similar authority as the Governor. However, in time of crisis, cool heads must prevail otherwise it only makes matters worse and mistakes are made in a panic. It was a major mistake for the city council to rush in and enact a city ordinance reflecting a knee jerk reaction to the point that they ignored the “open meetings” act.

The reality is that if and when such a crisis occurs, especially a natural disaster such an earthquake or another pandemic, the Governor would probably issue an executive order declaring a public health emergency. The Governor could also make such a declaration apply only to affected areas. A Governor’s Executive Order would supersede any order by a Mayor under a city ordinance. Further a Mayors Executive order would apply only within city limits.

CONCLUSION

From a practical standpoint, the most prudent thing for the city council to have done to ensure compliance with Open Meeting Act would have been to postpone the meeting. The urgency of the legislation has been diminished significantly with the the city implementation of actions as well as the Governor’s actions.

The ordinance is in fact void and unenforceable. Mayor Tim Keller would be wise to veto the Emergency Powers measure in an attempt to render moot the fact that the city council violated the Open Meetings Act. But then again, Mayor Tim Keller will probably seek the legal advice of his appointed City Attorney and Chief Administrative Officer who failed to recognize a problem with the city council’s illegal conduct in the first place, and who knows what the hell they will tell him.

To those who are critical of this article and feel that what happened was “no big deal”, what is important to remember is that elected officials are not above the law. The enactment of the Open Meetings Act by the New Mexico legislature was motivated by the belief that the democratic ideal is best served by a well-informed public. Sunshine laws generally require that public business be conducted in full public view, that the actions of public bodies be taken openly, and that the deliberations of public bodies be open to the public.

For a related blog article see:

Its HEEEERE! Governor Michelle Lujan Grisham Declares Public Health Emergency; Ban On Public Events; Schools Closed For 3 Weeks; Catholic Church Services Cancelled

__________________

POSTSCRIPTS

With respect to the corona virus, government officials urged people to protect themselves by:

Washing their hands frequently with soap and water for at least 20 seconds
When coughing, use a tissue to cover your mouth when coughing or cough into the forearm of your elbow
Cleaning “high-touch” surfaces daily with regular household cleaners
Avoiding the sharing of personal household items and, when sick, staying home rather that going to work or school
Staying home when sick
Avoid large crowds and public events

Older adults and those with chronic illnesses are most at risk to contract the virus that could result in death from complications. Even healthy people not worried about getting sick should take steps to protect themselves and others. The strategy must be to limit the chance of transmitting the disease to persons who are more vulnerable.

On March 15, 2019, the Aging and Long-Term Services Department released a list of resources intended to answer frequently asked questions. According to their list:
If you are unable to leave your home and need prescription medication, call 505-768-2084, if you are in Albuquerque; 1-866-699-4927 if you are outside of Albuquerque; 928-871-6868 if you are on the Navajo Nation; 505-629-8544 if you are in another tribal area or Pueblo.
If you need to access benefits including Medicaid, Medicare or Disability Waiver Services, call the Aging and Disability Resource Center at 1-800-432-2080.
If you are an older adult who is caring for children and in need of resources, call the Aging and Disability Resource Center at 1-800-432-2080.
If you are worried about a loved one in a facility or worried about communicating with him or her, call the Long Term Care Ombudsman at 1-866-451-2901.
If you are in need of a meal, but are not able to get to a senior center or the center is closed, call you local senior center or 1-800-432-2080 with any questions.
If someone you know is experiencing an emotional, mental health or substance abuse crisis, call the New Mexico Crisis and Access Line at 1-855-662-7474.

https://www.abqjournal.com/1432121/coronavirus-updates-march-15.html.