{"id":1484,"date":"2007-03-28T16:44:00","date_gmt":"2007-03-28T22:44:00","guid":{"rendered":"http:\/\/www.nmpolitics.net\/index\/2007\/03\/many-lawmakers-oppose-giving-more-for-spaceport\/"},"modified":"2007-03-28T16:44:00","modified_gmt":"2007-03-28T22:44:00","slug":"many-lawmakers-oppose-giving-more-for-spaceport","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2007\/03\/many-lawmakers-oppose-giving-more-for-spaceport\/","title":{"rendered":"Many lawmakers oppose giving more for spaceport"},"content":{"rendered":"

\"\"<\/a>This is the second in a series of articles examining the issues surrounding the April 3 election on whether to raise the gross receipts tax 1\/4 percent in Do\u00f1a Ana County to help fund Spaceport America<\/a>.<\/span> <\/p>\n

<\/o:p><\/p>\n

Many opponents of the proposed gross receipts tax increase that would help fund Spaceport America<\/st1:place><\/st1:country-region> claim they support the project, but not the tax.<\/p>\n

<\/o:p><\/p>\n

Many tax supporters are quick to counter that people don\u2019t support the spaceport if they don\u2019t support the tax, because, without that funding source, there won\u2019t be enough money to construct the spaceport.<\/p>\n

<\/o:p><\/p>\n

Interviews with state lawmakers reveal that, at the very least, securing additional funding from the state would be difficult. The state has already pitched in about $115 million toward the project\u2019s estimated $198 million cost. Another $25 million Gov. Bill Richardson<\/a> wants from lawmakers has encountered steep resistance for two years, but he has pledged to fund it from his share of capital outlay money next year if lawmakers don\u2019t approve it during the languishing special session.<\/p>\n

<\/o:p><\/p>\n

The Do\u00f1a<\/st1:placename> Ana<\/st1:placename> County<\/st1:placename><\/st1:place> tax would provide $49 million for construction of the spaceport. Proposed tax increases in Sierra and Otero counties would provide about $9 million, but those counties\u2019 commissions haven\u2019t yet voted on whether to hold tax elections.<\/p>\n

<\/o:p><\/p>\n

If the Do\u00f1a<\/st1:placename> Ana<\/st1:placename> County<\/st1:placename> tax proposal fails on Tuesday, Richardson<\/st1:place><\/st1:city> would have to ask lawmakers to pay that money on top of the $25 million he\u2019s already seeking.<\/p>\n

<\/o:p><\/p>\n

\n

Speaker of the House Ben Lujan<\/a>, D-Namb\u00e9, said such a request from Richardson<\/st1:place><\/st1:city> would not be well received, adding that the local tax \u201cwas part of the agreement\u201d when lawmakers voted to give the $115 million.<\/p>\n

\n

<\/o:p><\/p>\n

\u201cWe want to help that side of the state, but we want to see local support there. I think it would be very hard for us to come back and do more,\u201d Lujan said. \u201cI\u2019m very much in favor of (the spaceport), but I know legislators are very concerned that if the tax doesn\u2019t pass, then the local support\u2019s not there.\u201d<\/p>\n

<\/o:p><\/p>\n

Sen. John Arthur Smith<\/a>, D-Deming and co-chair of the powerful Senate Finance Committee, said locals should approve the tax.<\/p>\n

<\/o:p><\/p>\n

\u201cThe state has already stepped up to the plate,\u201d he said. \u201cIf the locals don\u2019t want to step up to the plate, why should we do it?\u201d<\/p>\n

<\/o:p><\/p>\n

Smith is a supporter of the spaceport, and didn\u2019t discount the possibility of additional state funding if county voters don\u2019t approve the tax. But he spoke at length about massive increases in the state\u2019s budget in recent years. Smith joins many lawmakers in fearing the current budget is not sustainable.<\/p>\n

<\/o:p><\/p>\n

\u201cWe\u2019re rapidly exhausting resources at the state level,\u201d he said, adding that, if the tax isn\u2019t approved, \u201cI won\u2019t say the state is going to step up to the plate again, but we\u2019ll do what we can.\u201d<\/p>\n

<\/o:p><\/p>\n

Some locals think state should pay it all<\/span><\/p>\n

<\/o:p><\/p>\n

State officials view the spaceport as a project that will help the entire state, but will primarily benefit Do\u00f1a Ana, Sierra and Otero counties, with the Las Cruces<\/st1:place><\/st1:city> area experiencing the most gain. That\u2019s the rationale behind asking for a local match to the state funding.<\/p>\n

<\/o:p><\/p>\n

Most local officials agree, and have endorsed the tax increase, but a few have a different perspective: They view the spaceport as a state project that will benefit the entire state.<\/p>\n

<\/o:p><\/p>\n

Do\u00f1a Ana County Commissioner Oscar Vasquez Butler<\/a> has repeatedly pushed for a small, statewide tax increase to help fund the spaceport, saying rural residents of his district are too poor to take on such a large share of the funding.<\/p>\n

<\/o:p><\/p>\n

Las Cruces City Councilor Ken Miyagishima<\/a> sides with Butler<\/st1:place><\/st1:city>. He is the only member of the council who opposed a resolution supporting the tax increase.<\/p>\n

<\/o:p><\/p>\n

\u201cWhy do we have statewide bond issues for educational purposes that benefit other parts of New Mexico<\/st1:state> and not Las Cruces<\/st1:place><\/st1:city>?\u201d he asked. \u201cIf we can ask New Mexico<\/st1:state> taxpayers to pay for bond issues that are not for Las Cruces<\/st1:city>, why can\u2019t we ask New Mexico<\/st1:place><\/st1:state> taxpayers to pay for the bond issue for this spaceport?\u201d<\/p>\n

<\/o:p><\/p>\n

Commissioner Bill McCamley<\/a>, on the other hand, has pointed out that residents of Farmington<\/st1:city>, for example, wouldn\u2019t likely approve a tax increase to fund a project in Southern New Mexico<\/st1:place>.<\/p>\n

<\/o:p><\/p>\n

Many lawmakers began the 2006 legislative session opposed any state funding for the project. The funding mechanism that is in place \u2013 the state money coupled with local tax increases \u2013 was the result of a hard-fought compromise reached by Richardson and lawmakers. New Mexico Economic Development Secretary Rick Homans<\/a> said that\u2019s part of why approval of the tax increase in Do\u00f1a<\/st1:placename> Ana<\/st1:placename> County<\/st1:placename><\/st1:place> \u201cis critical to the success of the spaceport.\u201d<\/p>\n

<\/o:p><\/p>\n

\u201cA defeat on April 3 would put the spaceport in serious jeopardy,\u201d he said. \u201cA final decision about whether to proceed would come from the governor, with input from the legislative leadership and our anchor tenant, Virgin Galactic<\/a>, after thorough consideration of all the options.\u201d<\/p>\n

<\/o:p><\/p>\n

Other funding options?<\/span><\/p>\n

<\/o:p><\/p>\n

But there aren\u2019t many other funding opportunities. State officials have asked for federal money for the project, but there has been no commitment at this point. At most, the federal government is expected to pitch in $25 million and, with the always-rising costs of construction materials, that money might be needed on top of the state funds and the local tax revenue.<\/p>\n

<\/o:p><\/p>\n

Some have suggested Virgin should build its own spaceport, but that won\u2019t happen. The company signed a memorandum of agreement this week stating its intent to pay rent and other fees over the course of a 20-year lease at Spaceport America<\/st1:place><\/st1:country-region>, but officials made clear that they view the spaceport as public infrastructure they are renting, not a private facility they own, and they have no intention of contributing to construction costs.<\/p>\n

<\/o:p><\/p>\n

Locals or the state will have to pay<\/span><\/p>\n

<\/o:p><\/p>\n

That means, if the tax fails, the $49 million will have to be picked up by the state, if the project is to continue.<\/p>\n

<\/o:p><\/p>\n

The spaceport is located in the district of Sen. Leonard Lee Rawson<\/a>, R-Las Cruces and the minority whip. He said if the tax fails and the governor pushes for additional state funding, he believes the Legislature will provide it. That\u2019s because, Rawson said, \u201cYou can\u2019t quit. You\u2019re into the project. You\u2019ve got to finish it.\u201d<\/p>\n

<\/o:p><\/p>\n

\u201cIf the local community does not step up to raise the gross receipts tax, then I\u2019m confidence the Legislature and state will make it happen,\u201d Rawson said.<\/p>\n

<\/o:p><\/p>\n

Rawson worked tirelessly to reach the compromise that resulted in the state funding and the statute that allows the local tax increase. He wouldn\u2019t say whether he supports raising taxes for the spaceport.<\/p>\n

<\/o:p><\/p>\n

\u201cI worked hard to get the public a chance to decide this, and I don\u2019t want to influence that,\u201d Rawson said. \u201cI\u2019ve supported the spaceport the whole way.\u201d<\/p>\n

<\/o:p><\/p>\n

Rawson said he has competing philosophies: He supports the economic development the spaceport will bring, but also supports less taxation.<\/p>\n

<\/o:p><\/p>\n

Many of Rawson\u2019s colleagues aren\u2019t as optimistic that the state will provide additional funding if the tax fails.<\/p>\n

<\/o:p><\/p>\n

\u201cI hope the tax passes,\u201d said Sen. Mary Jane Garcia<\/a>, D-Do\u00f1a Ana and the majority whip. \u201cIf it doesn\u2019t, I guess we go back to the drawing table.\u201d<\/p>\n

<\/o:p><\/p>\n

Garcia said she would also fight for more state money if the tax failed, but didn\u2019t sound as optimistic that her colleagues from the rest of the state would approve it.<\/p>\n

<\/o:p><\/p>\n

\u201cI would hope that they would be willing,\u201d she said.<\/p>\n

\n

House doesn\u2019t want to give more<\/span><\/p>\n

<\/o:p><\/p>\n

\n

Lujan, the leader of the House, isn\u2019t the only member of that chamber who doesn\u2019t want to give any more state money to the project. On the other side of the aisle, many Republicans don\u2019t think the project should have received any public funding.<\/p>\n

<\/o:p><\/p>\n

State Rep. Justine Fox-Young<\/a>, R-Albuquerque, said she is \u201cadamantly opposed\u201d to additional state funding for the project. Though Virgin has invested more than $200 million to develop its spacecraft, Fox-Young said she wants to see a larger investment from the private sector in the spaceport, which she said was originally considered part of the funding plan when the state began considering building a spaceport decades ago.<\/p>\n

<\/o:p><\/p>\n

\u201cAs far as I can tell, it is an ill-formed concept with no business plan and no private sector investment,\u201d she said. \u201cAs an alternative, the state could use the $100 million-plus in question to provide real tax relief, to provide badly needed resources to law enforcement and to our languishing schools.\u201d<\/p>\n

<\/o:p><\/p>\n

House Minority Whip Dan Foley<\/a>, R-Roswell, agreed.<\/p>\n

<\/o:p><\/p>\n

\u201cThis whole thing has been a farce from the beginning,\u201d he said. \u201cThere are a million other things we could do with that money.\u201d<\/p>\n

<\/o:p><\/p>\n

Fox-Young said she believes Richardson<\/st1:place><\/st1:city> will push for more funding from the state if the tax fails.<\/p>\n

<\/o:p><\/p>\n

\u201cRealistically, if the tax increase fails in Do\u00f1a Ana County, I think Gov. Richardson is prepared to mortgage our schools, our police departments, our museums and our parks to find whatever amount of money he thinks is necessary to buy the Democrat presidential primary election,\u201d Fox-Young said.<\/p>\n

<\/o:p><\/p>\n

Homans and proponents counter by talking about two studies that predict widespread economic development that will create thousands of jobs and brings hundreds of millions of dollars into the economy, and say that will increase the tax base and generate more money to meet the needs of New Mexicans.<\/p>\n

<\/o:p><\/p>\n

Homans said he doesn\u2019t believe tax supporters will have to ask the Legislature for additional funding.<\/p>\n

<\/o:p><\/p>\n

\u201cAt this point we are optimistic about the vote and hopeful that the community sees that it will realize a big return in the form of jobs and opportunities from a small investment, a 1\/4-cent tax,\u201d he said.<\/p>\n

<\/o:p><\/p>\n

Richardson<\/st1:place><\/st1:city>\u2019s office didn\u2019t release a comment for this article.<\/p>\n","protected":false},"excerpt":{"rendered":"

This is the second in a series of articles examining the issues surrounding the April 3 election on whether to raise the gross receipts tax 1\/4 percent in Do\u00f1a Ana County to help fund Spaceport America. Many opponents of the proposed gross receipts tax increase that would help fund Spaceport America claim they support the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1484","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/1484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=1484"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/1484\/revisions"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=1484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=1484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=1484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}