Gov. Bill Richardson (Photo by Heath Haussamen)
Gov. Bill Richardson has ordered a freeze on all capital outlay projects “with the goal of realizing as much as $150 million in savings,” according to a news release from his office.
The freeze applies to projects “initiated by the Legislature and governor,” the release states.
“I am taking this bold action since the Legislature chose not to cut even one dime of its pork projects,” Richardson said, referring to the special session that ended Friday. “These pork projects should be the first to be cut before we take any action that affects people.”
Last week, the Legislature approved a bill that includes a provision requiring legislative staff to identify at least $150 million in capital outlay projects that the Legislature can consider cutting when it convenes in January. Richardson highlighted that in his release, saying the Legislature “simply suggested they consider looking at projects to be cut in January. However, no action was taken to actually cut the projects.”
“As a result, Governor Richardson is directing state agencies to cancel all grant agreements for capital outlay. Only those projects that already have third-party agreements will be honored as of Oct. 23,” the release states. “The freeze on capital outlay projects will remain in place through the next legislative session in January when the issue can be revisited.”
Update, 5:50 p.m.
State Rep. Benjamin Rodefer, D-Corrales, just posted this note on his Twitter page:
“The Governor does not have the authority to freeze capital outlay. The power to appropriate or rescind such lies solely with the legislature.”
Update, 8:30 p.m.
Lt. Gov. Diane Denish applauded Richardson’s action in a news release.
“Last week, I was proud to cast the tie-breaking vote in the Senate to cut $150 million from the state’s capital outlay projects. Today I applaud the Governor’s decision to freeze all capital outlay projects, because during these challenging economic times the state simply can’t afford to continue doing business as usual,” Denish said. “And as we approach the next legislative session, I believe we must move towards reforming the entire capital outlay process before anyone starts talking about cutting services. We simply must find more creative ways for government to be leaner and more efficient. This freeze on capital outlay projects won’t fix the entire problem, but it is certainly a step in the right direction.”
It’s worth noting that Denish didn’t actually “cast the tie-breaking vote in the Senate to cut $150 million from the state’s capital outlay projects.” She cast the tie-breaking vote in favor of the provision requiring legislative staff to identify at least $150 million in capital outlay projects that the Legislature can consider cutting when it convenes in January.
Update, 10:10 p.m.
State Rep. Eleanor Chavez, D-Albuquerque, posted this comment on my Facebook page:
“Interesting in view of the fact that during the session the gov himself would not release his own list of capitol outlay projects,” she wrote. “Since he is feeling so bold perhaps he should roll back the 2003 tax breaks and declare that all corporations will now pay taxes on their profits, for starters!”