New Mexico State of the State Address 2000; State of the State Address

That? What. You Good afternoon and welcome to our live coverage of the governor's state

of the state address and the beginning of the New Mexico 2000 legislative session. In just a few minutes we will go live to the state capital where the governor is expected to arrive any moment now to announce his budget priorities for this short 30 day session. Before we go to the floor I want to introduce my guest for today's coverage Steve Lawrence editor of the Crosswinds Weekly and Max Bartlett Executive Director of Revisioning New Mexico. And I also would like to welcome our KRWG viewers in Las Cruces and KENW viewers in Portalis. Thank you for joining us. Before we go to the floor I want to ask both of you how do you think or actually what you think the governor might be talking about this year. Steve I'll start with you. Well he's certainly going to be it's going to be interesting to see what he talks about. He always throws some little oddities into his state of the state message. Well the last year he was talking about road cleanup as I recall and the fact that we need a cleaner state among other things and it'll be interesting to see what he leaves out as well but he's certainly going to probably talk about school vouchers still. It'll be interesting to see whether he says anything about drug policy which the state

really has very little to do with mainly a federal problem. He's certainly going to talk about prisons and the legislature wants more prison oversight this session and what he will say about that. There's been a plan kicking around to put the ten commandments on the walls of all the schools in the state and I don't know whether that's going to happen or not. It seems to be that it's liable to be because unconstitutional. So do you know that is or not? Well I've heard that same rumor as a matter of fact and one of the responses I heard was perhaps we should bracket that with some of the core moral teachings of all of the various world religions at least those that are widely practiced here in New Mexico. And I think another problem for the governor is that there was just this poll that came out in the Abokurki journal over the weekend that shows that his support in the business community has dropped substantially from the past

and so I think he's going to be under a little bit more pressure perhaps from his own supporters and he's been in the past to perform better. Do you think it's the drug issue that has lowered him in the polls in the business community? Well interestingly enough I guess from the way the poll was taken we can't tell for sure and there's certainly has been a lot of speculation that he's talked about drug policy has. Another thing though is it's important to notice that the economy in New Mexico is not doing that well it's not doing as well as it was four or five six years ago when at that time we were actually at the top of the growth rate of the Rocky Mountain States. Now we've dropped to the bottom and we're growing economically substantially under the national average as well so it may be that simply the fact that his performance on the business economy has not been that well over the last four years. I sense there's a lot of disappointment in the business community or here's a man who came into

office saying that he was going to run the state like a business and business is bad. The economy is way off the gap between rich and poor in this state is very wide third in the nation according to the newspapers this morning but also I sense that the business community hasn't really seen a cohesive economic development program out of the governor's office and he could have been expected to take the lead here and I think the feeling is that he really has not. Earlier you mentioned private prisons do you think that or can you tell me whether the real cost of private versus public has come out and whether he's ever going to announce that. I think a lot of people would like to know that I mean clearly the governor's own numbers I wouldn't say they're discredited but I think a lot of people are not giving them very much credibility because he hasn't really issued any of the backup to support them. Well he said he said three years ago that we were supposed to save 20 million in the course of three years and from what I understand we've actually gone up every year. That's the way I understand it as well and now they're proposing he wants to propose I think to build a super maximum

security prison based clearly of not gotten their prison act together. Well prisons have been a problem in this state for a long time with all fairness to the governor. We've had a prison problem since the days of the really big prison riot in Santa Faye back in 1980 and before that but this year he is proposing a 7 .8 percent increase in prison spending that is the largest increase for any substantial line item in the budget that he's proposing and it is difficult to see where we've seen any of the 20 million dollars in savings that he promised when we privatized. He was saying things for example that the state was going to save money by shifting license plate manufacturing to Canada. Saving a substantial amount of money there even though they had spent a lot of money installing equipment to make these license plates there, those savings have seemed to be illusory. We seem to be spending more and more money and because obviously the prison system still doesn't classify prisoners well.

You still have this tremendous gang activity there, a lot of violence. The state's known about this as Max says for many years. I mean just right after the big riots in Santa Faye it became obvious that the prison's classification system was really ill -conceived and not a good one and nothing has really been done to correct it until now we have this new outbreak of violence. This report that was just done by this advisory committee points out that the contracts to build some of these private prisons are not what they ought to be. The prisons were not built the way they ought to be and we can expect a legislature to go back and take another look at that certainly. So they're costing more? They are costing more. I mean the violence alone, having to ship 100 or so inmates to Virginia or West Virginia and ship them back again, I mean that alone is a very costly maneuver. I think the governor's office is saying that it's $64 a day for the prisoners in Virginia but others are saying the real cost is more like $100 a day and who knows? I think before the governor is able to get any

increases in prison past the legislature, a lot of the legislatures, legislatures are going to want to see some really good numbers and it remains to be seen whether they'll get them. Well I want to go to the floor for just a few minutes just to see what kind of activity is going on there if we can, if that's a possibility there we go. It doesn't look like the governor is near coming on, what is usually going on at this time? Max, do you know? Well the legislature formally convenes, we're going to have a 30 -day session which as you pointed out at the beginning of the program is primarily to adopt a budget. We adopt a budget every year and then every other year we have a 60 -day session in which we're supposed to undertake other laws. Before the governor comes on, each house convenes, they officially elect officers make a certain amount of committee appointments and then they gather in the house chambers, send a group of people up to formally call on the

governor and to ask him to come and present his remarks on the state of the state. And we've had delays in the past of as many as two hours when there have been challenges to the leadership of either the house or the senate. Since that wasn't anticipated this time, I don't think we would be having a long delay and of course the governor is waiting for the group to come out that formally ask courts him. But it's pretty much ceremonial stuff at this point that we're moving through. Well I've just been told that the governor will be on just before 1 o 'clock so if you want to make any more comes before I think we're going to probably go back to our regularly scheduled program. Anything that you expect the governor will or will not say briefly before we go away? I would be interested to see whether the governor alludes to the fact that all 112 members of the legislature are up for election this year. Which is a dynamic that's going to be, that's going to sort of hover below the surface in this legislature and I think it's going to have a lot of impact

on what the individual lawmakers say and what they're willing to do in terms of compromise with the governor this year. It'll be interesting to see if he alludes to that fact, to that at all. Max, last year he vetoed a lot of things because I mean he vetoed the budget twice because the senate wouldn't, or the legislature wouldn't agree to the voucher, his voucher program. You expect him to do that again this year? Well, given the fact that he ended up getting not that much support from his own party on vouchers, I suspect he's not going to try that same approach. I think it'll be interesting to see what crime measures he does propose. I suspect there will be a crime package again this year. Okay, well Steve and Max, if you can hang on for just a few minutes, we're going to go right now to our regularly scheduled program and we'll be back shortly before 1 to hear the governor's address. Thank you for joining us. Thank you. Thank you.

Thank you. Senator O'Della and Representative Crook to notify the governor that the House of Representatives is organized and ready to conduct its business for the people of this great state. Mr. Speaker. Chair recognized Representative Crook. I ask unanimous consent that the Speaker appoint a committee to notify the Senate that the House of Representatives has organized and is ready for business and at the same time invite the Lieutenant Governor and the Honourable Members of the Senate to meet and join session with the House in this chamber to hear a message from the Honourable Gary E. Johnson, Governor of New Mexico. If there's no objection, the Chair will appoint Representative Hawkins, Representative Aveta and

Representative Johnnester Chavez to inform the Senate that the House is duly organized and ready for business and at the same time to invite the Lieutenant Governor and the Honourable Members of the Senate to join us to hear a speech and a presentation on the state of state from the Honourable Gary E. Johnson, the Governor of the Great State of New Mexico. Mr. Speaker. The gentleman from Santa Fe, Representative Buchan. Speaker, I move that the House standing recess subject to the College Chair and that the rules be suspended to allow seating of guests in the chambers during the joint session. You may have been violated the rule all this time, dog on it. I second motion. I guess I have to accept that. Is there no objection here or none? It is so hard in the House to stand and recess subject to the College Chair. I will check with the Senate and see how quickly they will be here. The House will come to order and I'd like to begin introducing introduction of our

guests. Okay, everybody is situated and ready for the introduction of our honoured guests to her with us today. I would like to begin by introducing to my immediate right and here she comes, the Honourable Reveca Vijí Hirón, the Secretary of State, the Great State of New Mexico. The Honourable Domingo Martinez, our State Auditor, the Honourable Ray Powell, Commissioner of

Public Lands, the Honourable Michael A. Montoya, State Treasurer, the Honourable Patricia Madrín, the Attorney General of the State of New Mexico. The Honourable Yogi Bajan, Chief Minister of the Sikh Dharma of the Western Chemistry. His Excellency, who you all met this morning, Michael Sheyam, the Archbishop of the Archdiocese of Santa Fe. To those of you who haven't had the privilege of meeting the new speaker of my house, Carol Sanchez, my wife. And the lady who, to whom I owe everything I am, wherever will be, the wife of my deceased father and the mother of all of us, my mother, Priscilla Sanchez.

The Honourable Bruce King, former Governor. The Honourable David F. Cargo, former Governor. The Honourable Tony Anaya, former Governor. The Honourable Jerry Apulaca, former Governor. The Honourable Casey Luna, former Lieutenant Governor, two years. The Honourable Mac Easley, former Lieutenant Governor and Speaker of the House. And former Chief Justice, that's right, remind me. That's why I have Steve here to make sure I know everything I know. The Honourable Roberto Mondrachón, former Lieutenant Governor. And

incidentally a member of the House of Representatives at one time. The Honourable Mike Reynolds, former Lieutenant Governor. The Honourable Stephanie Gonzalez, former Secretary of State. To my immediate left. The Honourable Jeff Binghaman, United States Senator. My constituent and the Honourable United States Representative, Heather Wilson. The Honourable Pamela Minzner, Chief Justice, the Mexico Supreme Court. The Honourable Joseph Baca, Senior Justice, New Mexico Supreme Court. The man who taught me how to practice

law, so don't anybody, if you ever want to criticize my practice of law, talk to him. The Honourable Jean Franckini, Supreme Court Justice. And it's really nice to see this lady back with us, the Honourable Petra Mays, Supreme Court Justice. The Honourable Patricio Serra, Supreme Court Justice. The Honourable Lynn Pickard, Court of Appeals Judge. Another constituent of mine, the Honourable Roderick Kennedy, Court of Appeals Judge. The Honourable Rudy Apulaca, Court of Appeals Judge. The Honourable Joseph Alarid, Court of Appeals Judge. The Honourable M. Cristina Armijo, Court of Appeals Judge. The Honourable Richard Boson, Court of Appeals Judge. The Honourable James J. Wexler, Court of Appeals Judge.

The Honourable Michael D. Bustamonte, Court of Appeals Bustamonte. The Honourable Jonathan Sutton, Court of Appeals Judge. Kathleen Joe Gibson, Court of the Supreme Court. The Honourable William Pope, Chairman of the Public Regulation Commission. The Honourable Linda M. Lovejoy, former Chairman of House. Consumer Business Affairs, and now Public Regulation Commissioner. The Honourable Jerome Block, Public Regulation Commission. The Honourable Herb Hughes, Public Regulation Commission. The Honourable Tony Shaper, Public Regulation Commission. John Griechen, the Director for the Administrative Office of the Courts. The Honourable Kevin Fitzwater, Chief Judge Bernalio County Metro Court.

Veronica Rodriguez, representing the Honourable Pete V. Domenici, United States Senator. Rosie Trip, Wife of Don Trip, and Republican National Committee Woman. One of my favorite Republicans, a man who said he finally learned his lesson. He said after four heart attacks, the Honourable Manuel Lujan, Republican National Committeeman and former United States Representative, and Secretary of Interior. He is accompanied by his wonderful and beautiful wife, Gene Lujan. My favorite Republican Party Chairman, the man who makes my life so easy, John Dendall. Jan Brooks, President of the New Mexico Federation of Women.

Maribel Dusty Bolton, the wife of Dusty Bolton, and vice chair of the Republican Party. Michael Davis, Superintendent State Department of Education. Flora Sanchez, President of Mexico Board of Education. Margaret Davis, Secretary of New Mexico Board of Education. James Barrett, Member of New Mexico Board of Education. Rudy Castellano, Member of the Board of Education. Wallace Davis, Member of New Mexico Board of Education. Eleanor Ortiz, Member of the Board of Education. Katherine Smith, Member of the Board of Education. Christine Trujillo, Member of the Board of Education. Dr. Francis A. Stevens, Member of the Board of Education. And Dr. Marshall Berman, Member of

the New Mexico Board of Education. Back to my right, the Honorable Shirley Hooper Garcia, Former Secretary of State. The Honorable Natalie Smith Buck, Former Secretary of State. One of the lights of my eye, my sister, Ms. Gloria Pena. The other light in my eye, my sister, Regina Delkins. Regina is accompanied by her husband, one of my best friends, Gary Elkins, and her mother -in -law Mrs. Ona Elkins. The lady who wanted me to learn how to play piano, but I never could, my aunt, Elidia Bezik. My other aunt who thought I'd be a better baseball player, Claire Kraus. Neither one. A good friend of mine and my wife Patricia

Medioli. Mary Gail Waltney, National Democratic Committeewoman. Ira Robinson, National Democratic Committeeman. Anadil Sanchez, Region 3 Vice Chair for the State Democratic Party. Diane Denish, our State Democratic Chairperson. Rose Scott, President of the New Mexico Democratic Women. Gloria Nieto, National Democratic Committeewoman. The Honorable Jim Baca, Mayor of the City of Albuquerque. Eric Serna, Regional Director of the United States Department of Agriculture. The man who takes care of more children than anybody

else. Chris Baca, Chief Executive Officer, Youth Development Aid. Is Bobby here? Is Bobby Avila here? Robert Avila, I think, is here somewhere, is he not? I guess Robert Avila is not, he's the Chairman of the Board and also an Associate of Mine in my Law Practice. Rudy Chavez, Vice President of Youth Development Aid. Virginia Trujillo, Former State Board of Education Member. Ruby Appleman, Former State Representative. Adil Chenelli -Hundley, Former State Representative. Bruce Hamlet, Director for the Committee on Higher Education. And the lady who is the heart and soul of the Democrat Party, Charlotte Toulouse. Now, did I get everybody covered? Since

we're waiting, is there anybody else down here who wants to be introduced? Sherman McCorkold. He is the newly appointed Chairman of the Workforce Development Committee, which has been appointed pursuant to a bill passed, I believe, by Representative Lucky Vareloff. I'm not mistaken, is that correct? Anyway, he is the new Chairman of the Workforce Development Task Force, which number is about 40 some odd. I think I saw Tom Tinnon here, who is the Chairman of the... Tom Tinnon. He wants to build a new circus entertainment center for us right in the middle of who's district is that now? Representative Google's district. And she's not real happy about that because that's too much noise and traffic, right? That's what Representative McMullen used to always say. The former and really great Chairman of the Republican Party, Eddie Duhan, who's sitting

there with us. The story about him is that when he had his first heart attack, Manuel got loansome and wanted to join him. You don't want to join him, though, do you? No way. Let's see, while we're waiting on the Senate. Will the sergeant put arms, please escort the lieutenant governor and the honorable members of the Senate and do the chambers for the purpose of his disability to his speech. All right, fine. The governor of the right state of Mexico. Thank you. Thank you.

At this time, I'd like to welcome the lieutenant governor, the President Pro Tem and the leaders of the Senate and members of the Senate to the House. Don't hurt yourself. Great. For the information of the body, I finally found out after six years why you have these red vests. Got a little tense over in the Senate. A little nosebleeds was going on. It was kind of nice. I apologize for being late, but we had some business we needed to take care of. And with no further ado, the chair recognizes Representative Liu Ha. As President, I ask unanimous consent that we resolve ourselves into a committee of the whole House and Senate to hear a message from the honorable Gary Johnson governor

of the great city of Mexico. There is no objection. The chair will appoint Senators Durán Lopez and Macias and representatives Goobles, Mary Helen Garcia and Jay Paul Taylor to notify the governor that the committee of the whole House and Senate is ready. To receive his message and at the same time to escort the honorable governor Johnson to the House chambers. Those representatives and Senators will bring the governor in. I want to thank the speaker for introducing everyone while we were across the way. But there are a couple of guests that came over from the Senate that I would appreciate the opportunity to introduce. And the most honorable hire authority above me by all stretches of the imagination. My lovely wife, Debbie Bradley is here

sitting on the front row. She's standing. One of our very close friends, Mickey McCormick, and a hill to Baca from my office in Ruben Montes, my cheapest step. If they would stand and be recognized. Now, is there anybody else? I really missed the opportunity to butcher all those names. Where's those judges? Gosh darn, I'm sorry, and I practice too. It takes a lot of practice to have. Let me see what I can find on them. Oh, Senator Bingham, good to see you. Thank you. I love these wet slur, wet slur. Where's that one? Where is it? There he is. He's the mayor over there. I had the opportunity to go on. You can just leave the picture up and we can just talk if you don't have time.

You were waiting for the governor. I had the opportunity to address most of these judges that are swearing in of their newest member just a few days ago. And I promised them how great I would improve and help them on them. Afternoon and welcome to our live coverage of the governor's state of the state address in the beginning of the New Mexico 2000 legislative session. In just a few minutes, we will go live to the state capital where the governor is expected to arrive any moment now, as you can see, to announce his budget priorities for this short 30 -day session. Before we go to the floor, I want to introduce my guest for today's coverage, Steve Lawrence, editor of the Crosswinds Weekly in Max Bartlett, executive director of Revisioning New Mexico. Thank you for coming today and helping me with this coverage today. As you can see, the governor is about to go on. Anything that you expect the governor to be talking about today, Steve? Well, I think

his agenda has been pretty well announced in advance. I mean, he said that he wants to talk about schools. He wants to talk about prisons. One thing we know that he's going to do is talk longer this year than he did last year. We've been told it's going to be a fairly lengthy speech for maybe perhaps 45 minutes. Last year, he went very quickly through a very quick agenda. It'll be interesting to see whether he, whether he talks about economic development in the state, whether he talks about the impending elections in November. Max, I don't know what else. Max, what do you hope he'll be talking about this year? Well, I think it would be nice if we would see indications that the legislature and the governor's office are going to work together, cooperate, move along for the good of New Mexico. I think they will. I'm not necessarily optimistic on that point. Certainly, education is going to be at the top of everyone's priority. As the state's economy has been becoming doing less and less well over the

last few years, that's clearly an indication of an area that needs concern. I've heard that the governor is going to have a number of crime proposals in his package. There's talk that he may have as many as a hundred separate pieces of legislation on the call, which is a remarkably large number for a short session of the legislature. We came on the air over an hour ago talking about the governor coming on in just a few minutes. We've been delayed now over an hour because the Senate was in session and they just now talked about a couple of nosebleeds. What do you think is going on? Any guesses? I wish I had access to the APY. I would love to know. What we heard was that there was some sort of a proposed amendment to the Senate rules. It obviously was something that was not minor because it took them quite a length of time to resolve the issue.

There was a delay of quite nearly two hours a few years ago when there was a challenge to the leadership in the Senate. Obviously, this wasn't anything that significant, but judging by the lieutenant governor's comments, things did not start off today purely on a ceremonial note. Do you think this is an early indication of what we may see for the next 30 days? I don't know. It could be. Certainly, I don't expect this to be a particularly harmonious session. There are just a tremendous, several really volatile issues that have to come before the legislature. It will be interesting to see what the governor, for example, has to say about gambling compacts. They could try to rush through revised gambling compacts, but there's some doubt that they'll have enough time. They may either have to go into a special session or wait till next time. We've talked about schools. We've talked about prisons. The governor has tax cuts on his agenda, and the legislature doesn't seem to be very sympathetic to tax cuts. There are a number of educational proposals

that it remains to be seen whether the governor is going to try to float a voucher plan again. Actually, on the tax cut, I think the issue there is not whether or not there would be tax cuts. Now, there is some concern about uncertainty with the budget as to whether we can afford them, but the issue there seems to be shaping up more tax cuts for whom. Is it going to be tax cuts for those New Mexicans who are particularly well off and are at the upper end of the income spectrum, which is what the governor is proposing? Or is it going to be tax cuts that are directed towards economic development and directed towards people who are at the very low end of the income spectrum, which is what some members of the legislature are talking about? And there is also some talk that there's so little money to do anything with this year that they might simply forego attack, that they might simply forego attack, that they say it's just really not worth it. The legislature is that they're not going to implement or consider any kind of tax cut, but the governor would consider anything that they would bring to the floor. Well, as Max said, there has been some talk about tax cuts for small businesses and some things like that to spur economic

development, but that certainly hasn't been a part of the governor's public agenda so far. No, the governor's public agenda has been high income. Yes. Well, we should go back to the floor now because they're announcing the governor who is about to go to the podium. The governor of the state of New Mexico and his wife, David of the Chamber. Thank you.

Welcome, governor. Oh, last minute instructions. Mr. Speaker, Mr. President, where is Mr. President? Honourable justices of the Supreme Court, members of this 44th legislature, distinguished guest, my fellow New Mexicans. Some of what I'm going to share with you today may sound familiar. That's because good ideas, common sense ideas, will continue to be proposed. Prior to the important work that you have to do this session, I'm taking this opportunity to detail for you the status of our state government departments today. This information is important.

It's important to you, it's important to me so that we can work together to see the best ideas in this state go forward. All of us gathered here today in this great chamber are blessed with a great honor and the great duty to lead New Mexico into this new century. While we may not always agree on every single issue, we do share the same goal and that's improving the quality of life for our citizens here in New Mexico. In order to always improve that quality of life, we must focus our efforts on improved education, economic development, government efficiency, and reduced crime. These four strategies will enable New Mexico to build upon our past, strengthen our present, and secure our future. Improving education for our children is priority number one for all of us. With respect to this priority, our goal is the same, to dramatically improve the academic performance of our

schools. In fact, many of our strategies are the same and they will work. Higher academic standards, more testing, greater accountability for results. We have invested over a billion and a half dollars a year on kindergarten through 12th grade. New Mexicans need to know that we can't continue to put more money into a system that is not accountable for results. What's missing from public education is not money, what's missing is competition and choice. Just give school choice to parents. Let them send their child, their son or daughter, to any public, private, religious, or charter school, any school, anywhere in New Mexico. Legislation that provided for vouchers was defeated at the special session last May. That legislation will again be introduced later this afternoon in the House and Senate, and I urge you to debate and adopt this legislation. Provide all

parents the freedom to choose any public, private, religious, or charter school for their child. I call on you to support the heart and soul of real educational reform vouchers. Let me suggest five additional accountability measures to help all public schools in our state. First, adopt program and performance -based budgeting to track the return on investment. Take the Bloomfield School Districts lead and tie the budget to performance. Second, an act merit -based teacher pay. Reward those who are outstanding because they are doing what is best for our kids. Third, amend the Instructional Materials Act to enable local schools to purchase what is needed for student success. Fourth, expand school testing. We're currently

testing those students in grades three through nine. Let's test the student sooner and include kindergarten through second grade in that mix. Fifth, complete the state school accountability system, which is critical to improving our schools. Currently twenty of the eighty -nine school districts are able to provide data to the public that details how their schools are performing. We need to complete this system this year and make this information available so parents can compare where each school within each district ranks. Schools have to know where they stand today so that they can reach and set the goals for where they want to be tomorrow. Let us do what's right and fair for all parents and students. Let us improve student academic performance statewide. Let us make school choice a reality for the children's sake. Economic development is the second strategy to improve our quality

of life. The Economic Development Department is working hard to attract more business to New Mexico. It's time to turn our dreams into reality. New Mexico has long been a place to dream, to innovate, and to explore. It must become a place to grow, to expand, and profit. We're seeing the dreamers. We're seeing the dreamers find their homes here as new biotech and biomedical companies bring new products into the marketplace. Cell robotics, an albuquerque company, is today marketing laser -based testing equipment for diabetics. Phase one molecular toxicology is finding new ways to examine how our bodies accept or reject life -saving drugs. M -Cores building solar cells to power satellites in space. Muse technologies is finding a way to give astronauts experience in new worlds through virtual reality. Our small business

dreamers are already here. It's our job to help them turn dreams into reality. Our tax policies must encourage dreamers and builders to stay in New Mexico as their companies grow. Our infrastructure policies must give them a home in any part of the state. We must give them the economic tools they need to prosper. In New Mexico, our room to grow and our room to dream must now be linked by an infrastructure that can now allow us to turn our economic dreams into business realities. We must open the markets for telecommunication competition and we must invest in the construction of our telecommunications backbone. That backbone will allow a 70 -year -old living in truth or consequences to access the telecommunications tools he or she needs to be a financial consultant in Asia and allow young Navajo weavers living near Shiprock

to market their blankets in Europe. High skills equal high wages long -term job security requires lifelong learning. The new economy demands a highly skilled workforce. Our workforce development proposals will enable every New Mexico workers dream to become an everyday reality. Indian gaming. Indian gaming has provided economic development for the tribes and pueblos of New Mexico. In addition to providing the tribes with economic self -sufficiency which has allowed them to develop projects from water systems to improved housing, Indian gaming has employed a number of New Mexicans both Indian and non -Indian. We're currently in the process of negotiating changes to Indian gaming compacts which will provide the state and the tribes with certainty and stability. Such a negotiated resolution is

preferred over the uncertain scenario which will result from a legal confrontation. The state taxation and revenue department has to efficiently impose, collect and distribute revenues and then convert those revenues into services. Never, more than now has the taxation and revenue department struggled to meet that mission. Despite budgetary constraints and a growing customer base, our tax department has increased its audit assessed dollars by $47 million and almost tripled its taxpayer assistance outreach. Over $3 .8 billion are processed through this agency annually. Over 800 ,000 tax returns were processed faster this year than ever before. This can be credited to an increased usage of electronic filing which was pioneered by our tax department. Internet filing will expand this year to include refund express

refunds for personal income and automatic bank deposits for an even faster refund time. Business filers will also be able to file electronically this year. The Motor Vehicle Department handled an increase of over 480 ,000 new transactions without an adequate budget increase. The State Board of Finance committed $167 ,000 in emergency funding for the Motor Vehicle Department. Now your support will be needed for the remaining projected shortfall. Tourism is a foundation for our new economy. The Department of Tourism has continued with successful advertising and publicity campaigns with big plans for the new century. Tourism is the second largest industry employing some 74 ,000 new Mexicans statewide. The legislature worked with the tourism industry to infuse the department's coffers last year with an additional $2 .9 million in advertising. It worked. The Department has seen a 26 %

increase in inquiries this year. Our nine visitor centers have shattered previous records serving more than 700 ,000 customers. That's the most since 1993. The Department is also asking new Mexicans to come out and play with its statewide ad campaign designed to entice residents to stay here during their vacations. Internet uses skyrocketing, netting about 50 ,000 inquiries more than the last five years combined. At the department's newly designed website, visitors can electronically plan their vacations and we can help them at just seven cents in inquiry. One big reason people visit our state is our scenic beauty. We have to keep New Mexico beautiful and the Department of Tourism has launched a litter awareness campaign, don't trash New Mexico to ensure that scenic beauty.

The New Mexico Highway Department is building prosperity that will positively impact our future. At this very moment you are witnessing the most concentrated improvement to our transportation system in the state's history. The Highway Department's strategy of focusing both construction and maintenance on entire corridors translates into the first decrease ever in the number of bad highways that our citizens must drive on. Four lane highways are being built across New Mexico to bring economic opportunity to rural areas. There are also a lot safer to drive on. Major projects are being built in every metropolitan area to ease traffic congestion. Today the highway and transportation department has over

$800 million of highway construction underway. That's three times the traditional building program and they've done it with 13 % fewer employees than five years ago. They're a more reasonable cost. New Mexico has become a national leader in transportation. The New Mexico Department of Labor is providing a trained workforce. In 1998 legislation was enacted which reduced unemployment taxes for New Mexico employers and on top of that reduction in taxes was increased benefits for eligible workers. Our Department of Labor is now proposing an additional unemployment insurance tax reduction that will save New Mexico employers and additional $20 million during the first year and another $30 million the next year. On top of this, on top of these reductions will also be benefits

increased. The enactment of the New Mexico Workforce Development Act along with federal legislation will consolidate more than 60 federal training programs. Under this new state law and local governments will now be able to determine how to spend these training dollars rather than the federal government. Across the state employers and employees will have one stop shop centers that will give access to services and allow workers to apply for jobs and get training in one location. The Energy Minerals and Natural Resources Department manages state resources. For the past five years the number of visitors to our state parks are 31 state parks has steadily increased. In the last year alone five million people enjoyed our parks. That's 14 ,000 people a day. We've made significant improvements from constructing visitor

centers with state -of -the -art exhibits and installing new boating docks at our lakes to building trails with interpretive signs and we plan to do even more this year. I've designated this year 2 ,000 as the year of the state parks. Our economy also depends on our ability to develop natural resources in our state. We must continue to develop yet conserve our natural resources. We've streamlined the permitting process and eliminated paperwork and by moving to the internet we can begin to accept industry applications online which would significantly reduce the amount of time it takes to render decisions. Today extractive industries are doing business in our state and a regulatory climate that minimizes burdens and protects the environment. The oil industry was able to survive last year's plunge in prices. Through the tax incentives this 44th legislature passed we have ensured that this important industry could remain a vibrant part of our economy. We've certified

13 ,485 producing wells as eligible for the stripper well incentive. Equally helpful the reduction in taxes should guarantee that thousands of marginal wells continue producing for a long time to come and we will soon complete the process of certifying 600 new wells eligible for the new well incentive. Millions of dollars from this new production will benefit industry, local economies and the state treasury. When it comes to our environment we have to clean up the past, protect the future and sustain economic growth. My environmental philosophy is quite simple. Move aggressively to clean up contaminated sites and work with business to prevent new pollution. This work has been and will continue to be accomplished without the relaxation

of any environmental standards. Instead our environmental department is developing creative new solutions for improving environmental quality in New Mexico. While issuing permits and taking enforcement actions are the traditional activities performed by this agency, new initiatives have been created and are making a difference. The department's Green Zia environmental excellence program takes a practical approach to helping companies prevent pollution. This year I recognize 22 companies for their achievement through this program. The environmental department has also taken a strong leadership role in the implementation of new ways for solving water related disputes. Through my signing of executive order 99 -33 this fall I encourage the use and adoption of these collaboration -based principles. As was attended by over

200 individuals involved in water issues. The office of the state engineer is focused on managing water and sustaining economic growth. The primary responsibility for the state engineer's office is to adjudicate and allocate water, one of our most limited and valuable resources. This year a new hearing unit has been established. There are now full time hearing officers and support staff to handle protested water right applications. As a result significant progress is mid -made towards reducing the backlog of water rights applications. In October 1988 there were 3 ,195 applications backlogged. In October 1999 there were 855 cases remaining. New technology has been directed towards the adjudication of water rights in the lower Rio Grande. The use of global position satellites and a geographic information system has all but eliminated. Older

surveying techniques formerly used in making a hydrologic survey. The office has also begun a major computerization endeavor. A comprehensive database is being developed to store an image. The office's extensive water right file, some of which go back over 100 years and date back to before statehood. Future watershed management can hold the key to enhancing water yield and water quality. The Endangered Species Act is raising significant challenges for the state's water code. Collaborative principles are being utilized in order to balance environmental concerns with the requirements of our state's water code. The Regulation and Licensing Department is geared for economic results. Focus has been given to providing the taxpayer the best possible service at the lowest possible price. This has resulted in a 9 % decrease in employment levels at a time when the volume of work has been increasing. Employees have

responded by improving their work processes, including the effective use of technology and outsourcing of certain functions. By focusing resources in areas that can have the greatest impact for customers, we've demonstrated that government can be a partner and that we can listen to their concerns and that we can improve. One of the most exciting things happening in the Regulation and Licensing Department is their conversion to new licensing software that will dramatically improve the licensing process throughout the department. More importantly, it's the first step in establishing the capability to perform licensing via the internet. In conjunction with his innovative use of technology, I will be asking all the boards and commissions to review and revamp their rules and regulations that govern the licensing process for their profession. The goal will be to shorten the amount of time it takes from the date of application filing to the issuance of a license. The more efficient we can make this process, the more we act

as partners to the industries we regulate. The Office of Cultural Affairs is ensuring that our rich heritage and bright economic future. The Office of Cultural Affairs has a concentrated effort on expanding the public's access to museums, historical sites, educational programs, library services, research and preservation activities, community support programs, and electronic information systems available on the internet. From the construction of four lane highways and the building of the information super highway to the installation of one -stop shops for lifelong training and the satellite mapping of our resources, water resources, New Mexico is building upon our existing economic foundation. From electronic filing of mining permits and business tax returns to the Green Zia Excellence Awards and the renovation of state parks, New Mexico is strengthened in the economy

of today. From new museums to new uses of the internet and new tourism advertising, New Mexico is securing a bright economic future. The third strategy to improve our quality of life is to reduce crime in New Mexico. Crime control by controlling criminals is becoming a reality. For the past 22 years, the operation of New Mexico's corrections department was under the control of the federal courts. This past summer, the department vacated the Durand Consent Decree. Corrections is now controlling its own destiny and has closed the faucet of millions of dollars and taxpayers' money flowing to inmate attorneys. Never again should overcrowding be the excuse to allow turn -style justice in New Mexico. We've added more than 1800 beds to lock up criminals. The new prison beds allow the state to end good

time for violent offenders. Inmates now serve 85 percent of their sentence for violent felonies against our citizens. The corrections department has reduced the cost of incarceration for New Mexico inmates on a per capita basis. This past year, we've seen the dangers of prison violence at both public and private prisons. The state must punish those inmates who commit crimes behind bars. They must be held accountable. The key to gaining control of inmate violence in prison gangs is the establishment of a supermax security prison. Dangerous predatory and disruptive inmates will have less opportunity to prey on our citizens, our correctional officers, and other inmates. New Mexico's correction system and the issues they face are always changing. We have built a strong foundation on which to continue to operate safe, secure, and sound correctional programs for the benefit of all New Mexicans.

Public safety is one of the core functions of government. Their responsibilities range from keeping our streets free of criminals to providing emergency assistance to communities and our citizens in times of need. To have safer streets, we need more officers on those streets, and we are actively pursuing our recruiting efforts to fill the 90 expansion positions that have been allocated. A key concern in this area is currently the 60 -hour college credit requirement, which makes it difficult to find qualified individuals. In that light, I'm proposing legislation which would allow for limited exemption with respect to this requirement. In summary, the state of the Department of Public Safety is good. The transition under the new cabinet secretary Nick Bacchus has been smooth and the reaction positive. From the ending of the Duran consent decree and the completion of hundreds of new prison cells to the hiring of more state police and the implementation of new

truth and sentencing laws, New Mexico is building upon our past, strengthening our present, and securing our future. The fourth and final strategy to improve our quality of life is to focus on government efficiency. We have to continue to offer government services at the best prices. The Department of Finance and Administration has overseen this mission. As we approach the 2000 legislative session, the state's finances are in a much improved condition. Reserves are now 5 .7 % of the current spending level. Due to prudent management of overall spending level, the state has weathered a slowdown in the rate of revenue growth. New money for the coming session is expected to be $144 million or 4 .4 % over prior years spending level. This is enough revenue to permit a modest tax cut while still funding the essential services of state government at an adequate level. I will recommend the following priorities in allocating new money. Number one,

there needs to be a tax cut. In designing the budget for fiscal year 2001, significant tax relief in both personal income taxes and unemployment insurance taxes are realized. I'm proposing that personal income taxes be cut by $65 million per year through a series of three steps. $15 million this year, $20 million in 2001, and $30 million in 2002. The total tax cut will represent more than $100 per taxpayer per year. My budget recommendations were developed by applying the following five principles. First, we must adequately fund the entitlement programs and other caseload driven programs that have been seriously underfunded in previous budgets. Examples include adult prisons, Medicaid, and the public defender's office. Second, we must restore adequate funding to those agencies whose budgets have been cut with no corresponding

reduction of responsibilities. Examples include state parks, the motor vehicle division, and others. Third, we must recognize commitments made in previously passed legislation that have not been adequately funded. Examples include state police officers, the Hispanic Cultural Center, the Doniana Facility for Children, Youth, and Families Department. Fourth, we should allocate available money to primary and secondary education in such a way as to encourage serious reform and accountability measures. Finally, we should hold all other agencies to limited growth while accommodating increased insurance expenses and annualizing this year's pay plan increase. In addition to operating funds, we have approximately $192 million available for capital outlay funding. I recommend that these funds be allocated to essential infrastructure projects, including public and higher

education facilities, adult and juvenile correction facilities, building repair funds, and other statewide projects. The executive budget recommends $38 .8 million of supplemental and special appropriations during the current fiscal year, and $114 .9 million of non -recurring appropriations is recommended for fiscal year 2001 for computer enhancements and capital outlay. Under these recommendations, the reserve balance at the end of fiscal year 2001 would reach $172 million or 5 % of recurring appropriations. Experiences shown that we must maintain this level of reserves in order to ensure our future ability to meet the state's essential functions. In order to improve the efficiency of state government, my administration has been working with the legislature to implement performance -based budgeting. This approach seems to improve the targeting of state spending on our highest priorities.

Specific standards for performance -based budgeting are being developed. The goal is to make the budget more logical, useful, and goal -oriented. My administration will work to ensure that the results of this effort serve as a basis for a more efficient and productive state government. The General Services Department is responsible for servicing all of state government. They provide everything from buildings and maintenance to computers and communications, from providing our employees with health insurance to ensuring the state through risk management. Many of GSD's efforts in providing these services have produced innovative solutions, which have not only saved money, but have provided more efficient government operations. For example, the civil rights training incentive program has saved many state agencies the amount of premiums they pay for insurance. More importantly, it's reduced the number of civil rights claims through improved working conditions for our employees. On a statewide level, GSD was also a participant in

the award -winning Cuesta Communications Project using the state microwave system to provide internet access to local schools, government, and medical services. The Procurement Assistance Program helped 711 small and minority businesses in New Mexico secure contracts with state and national governmental agencies. GSD's innovative attitude will continue in the future with a number of initiatives they plan to pursue. Pursuit of funding for the state microwave system conversion to support public safety and enhancement of telecommunications systems in rural New Mexico. Promotion of Capital Buildings Planning Commission objectives of efficiency and cost reduction through building ownership and departmental consolidations and implementation of a substantial transportation rate reduction for state vehicles. Because of these innovative ideas, which reduce the amount of money we

must expend to provide these governmental services, we've been able to use many of your tax dollars in such areas as education and highway construction. The chief information officer focused on three major issues in 1999, improved informational technology management, use of the internet for direct electronic service delivery, and the risk of year 2000 failures in state service delivery. In order to improve information technology management in New Mexico state government, the CIO has addressed major information technology issues in state government. The CIO improved agency awareness of the emerging impact of internet service delivery. Most agencies now have their own web pages providing information to the public. Two agencies are accepting applications or filings over the internet, and agencies are rapidly developing e -commerce applications. The chief officers

office led the effort to minimize New Mexico government service delivery interruptions during year 2000 transition. They tracked 300 agency specific mission critical systems and 23 major statewide system delivery systems. They provided consulting to agencies and oversight for both executive and legislative branches of government. New Mexico citizens experienced almost no service delivery interruptions during the millennium transition. State personnel is building a dedicated civil service system. The state employee workforce represents a huge investment in capital and human capital as well as the greatest single expenditure in agency budgets. The personnel board seeks to bring greater economy and efficiency to the management of state affairs. For the past

five years, the state personnel system has made steady progress in this effort by simplifying its rules and regulations, changing to recruitment by real -time vacancy, pushing decision making down to the agency level and instituting pay for performance as a reward mechanism. The next step is a comprehensive redesign of the classified employment system. This massive project which will be completed and implemented in July 2001 will provide our state workforce with state -of -the -art mechanisms to support the kind of productivity that we all demand from our public servants. From low -growth budgets and high fiscal reserves to multi -year tax cuts for both individuals and industry, New Mexico is building upon its past. From performance -based budgeting personnel reforms to procurement code reforms and a proposal to invest $200 million in capital outlay, New Mexico is strengthening our present and securing our future.

In addition to these four strategy healthy and strong families remain the foundation for an improved quality of life. The children, youth and families mission centers on helping preserve New Mexico families and protecting our communities. New Mexico's foundation is the family. More than anything else, families contribute to both our successes and failures as a state. Another concern for CIFD is the thousands of New Mexico children who are abused and neglected. On any given night, more than 2 ,500 children go to sleep in a foster home. 250 of these children will never be able to return to their homes because they are unsafe. CIFD has initiated an aggressive campaign to recruit more foster and adoptive parents. There is nothing anything. There is nothing any of us could do that would be more beneficial to the health of our

state than promoting the need for foster and adoptive families. If you are interested in becoming a foster parent, please call the Children, Youth and Families Department. CIFD promotes community safety by operating the juvenile justice system. Rehabilitation is more successful in young people than adults, and CIFD has worked to reduce overcrowding in juvenile facilities to improve the program and educational environment. More one -time delinquents are graduating from high school and receiving their GED than ever before. The addition of the new medium security facility in Doniana County will improve CIFD's ability to provide quality education to juvenile offenders. Human services is providing a helping hand to those families in need. The major change of the last decade that we must face has been the transfer of responsibilities from Washington to the states for programs such as welfare, child support and food stamps. One key to solving our welfare problems in New Mexico rests with the Human Services

Department's Child Support Enforcement Division. Child support cases have climbed from 85 ,000 cases to 105 ,000 cases in the last year. Single parents not receiving child support payments are more likely to end up among our welfare population. Accordingly, the Human Services budget request proposes money that will enable us to eliminate this backlog. Efforts to pursue arrangements with tribal organizations wishing to establish their own child support enforcement units are progressing. The Navajo model is up and running and by national standards, it's actually considered a model. Even under the best child support scenario, we must get temporary assistance for needy families' clients to work well before their lifetime eligibility expires. This plan, this plan is well underway and preliminary results are promising. Six months into the program over 2 ,500 clients have found jobs. A wage

subsidy program to place TANF recipients into private sector subsidized wage positions is also at hand. We will pay half the employer's wage for six months and would expect the employer to hire a successful participant thereafter. Already, we've had some success in placing individuals into public and private sector jobs through this program. In addition to these incentives, we are also submitting legislation to simplify the income tests so that we can better afford to assist those in need. Inquiring into household income has created problems and loopholes that make Swiss cheese of the law that we have, so we support repealing that requirement. In terms of Medicaid, our budget request is a very conservative evaluation of our salued requirements. It represents a modest increase from the general fund, particularly compared to the double -digit growth in recent years. Finally, we've been working on cotton solidation of departments, agencies, and programs with an eye to creating a more efficient

customer -focused operation. It took Lincoln four years and seven generals to finally settle on Ulysses S. Grant, but the cause was too important to do less. Likewise, in Robin Dozier -Oton, I have a proven leader and a manager who will do what it takes to rescue our communities from the vicious cycle of poverty and who will make all of HSD's operations a customer -oriented, fiscally responsible state model over the next three years. I urge the Senate to confirm Robin Dozier -Oton. At the Department of Health, we continue to expand the long -term care service delivery for the elderly, persons with physical disabilities, and persons with developmental disabilities. The six facilities under the Department will also continue to provide quality services as evidence by their full accreditation. Our substance abuse prevention efforts continue to be strengthened.

We're also well on our way to a comprehensive behavioral health treatment service system through the development of regional care networks. We continue to have a strong emphasis on the quality of healthcare services in New Mexico. The continued commitment to these four key strategies will improve our quality of life. We must continue to build on our past and strengthen the present so as to secure our future. This 44th legislature can take steps related to all four strategies. In economic development, I urge you to cut personal income taxes, $15 million this year, $20 million next year, and $30 million the year after that. Cut unemployment insurance taxes by $50 million over the next two years. Attempt a capital outlay package that includes telecommunications projects, school construction,

and the projects at our colleges and universities. Adopt Indian gaming compacts. In reducing crime, I urge you to honor your commitment by issuing $800 ,000 in severance tax bonds to the construction of the Donia Anna juvenile facility. Honor your commitment by hiring more state police. Adopt the DWI package. I have submitted to immobilize and impound DWI vehicles. Number three to promote government efficiency. I urge you to adopt a responsible budget that funds essential services. Adopt a budget that reforms welfare, expands, manage care, keeps our state parks open and provides full service at our motor vehicle offices. Continue our commitment to performance -based budgeting by expanding the program from a few agencies to many. And finally to improve education, I ask you to

consider my six accountability measures. But if you choose only one, adopt a school voucher bill that provides school choice to every New Mexico family. We all share the goal of improving the quality of life across New Mexico, improving our state, improving our homes, and the lives of our citizens is not Democrat or Republican, liberal or conservative. It's what every one of us was elected to do. We have much to do over the next 30 days. Let's get to it. Thank you. God bless you and may God bless New Mexico. The governor just finished his state -of -the -state address with a Mexico 2 ,000 legislative session and I want to ask my guest, Steve Lawrence,

an editor of the Crosswinds Weekly in Max Bartlett Executive Director of Revisioning New Mexico. What did you think? As far as speeches go, no specifics, but as far as the speech, it was longer this year than it was last year, I think 25 minutes longer. Who's talking? Max, go ahead. Well, yes, clearly it was longer. It was much more comprehensive. There was a review that included a litany of all of the various state departments and initiatives that they were doing. It was comprehensive, unlike a year ago, when we had an almost a bumper sticker sound byte speech. However, it was articulated in such a way that I think we clearly saw where his four priority areas are in terms of education, economic development, crime, and governmental efficiency. And strangely enough, I think, governmental efficiency where he talked about the budget,

there's perhaps not that much separation between him and where the legislature seemed to be coming out in the legislative finance committee. You said perhaps on this tax cut. What did you think about his tone? I would not call this an inspired performance. He was very atonal. We were sticking with it because that's our job, but I would think that the public at large would have a hard time sticking with this speech. He's not an inspired speaker. I don't think he ever claimed to be. I don't like his tie, and I don't like his boutinear. I didn't see any surprises in this speech. It was a fairly routine march through the goals and objectives that he has said before. It was certainly a defense of what his administration has been doing up to this point,

which is not a surprise, but not really addressing some of the significant problems that certainly are going to be addressed in this legislature. Four of generalities. For example, on the cost per prisoner, privatizing prisons, he just sort of blew by that with a general statement that costs have been reduced, with no supporting numbers at all. This, in spite of the fact that the legislature has made it very clear that they are going to need numbers before they fund the Supermax prison and before they start increasing funding for prisons altogether. Now, he framed everything in this quality of life kind of points. Did you find that interesting? Is that surprising to you? Well, I think given the rather exhaustive treatment of civics that we got, it was nice that it was framed in that way. I think one of the things that struck me going through each of the points is that he also broke no new ground. There

were no innovations, there were no new proposals. It was revisiting the same old themes. He acknowledged, for example, that his school vouchers proposal went nowhere in last May special session. Even members of his own party and fairly large numbers did not vote for it, and he makes that his number one proposal. There were very muted applause when he brought that up, it seemed to me. Well, he brought it up again at the very end, and he had made his six points on education, and he said, if you adopt any of them, please, if only one of them is considered, please consider the vouchers. He seemed to be at the end pleading for that, so you think he's probably going to make a big case on it this year. Well, possibly Steve, but I think it's probably DOA. It sure seems to me that it is, but as soon as there were two points in this speech where he got a really muted response from his legislative audience, one was when he talked about vouchers, and the other was at the end when he went through this litany of things that he wanted, and he said, enact

Indian gaming compacts, and there was this deafening silence from the floor of the legislature, which kind of surprised me, actually. Well, aren't they somewhere near coming to some agreement on the Indian gaming? Well, they say they are. They're about to begin public hearings on the on the gaming compacts, which is going to push the deadline for a final proposal toward the end of the session, and there may be some question whether they're going to get to this session, or have to have a special session, or leave it for the following session. There's some separation. It's been movement by both sides. This is a very difficult negotiation, because you have a legislative body on one hand, you have tribal sovereignty issues, so that we're talking about 15 different tribal sovereign governments, and 112 members of the legislature, with the governor then as the broker trying to assemble a deal, but with him clearly being identified with the tribal side. So it's complicated. You have this overlay of federal law, which seems to

require certain minimal funding levels by the tribes, and the legislature and the governor seem to be exceeding those limits, although it's very unclear what they are. We're looking at what 6 .7 is both the 9 .2. If you cut to the chase, the difference is 6 .7 % was the most that was just offered by the tribal authorities. 9 .2 was as far down from the 16%, as the legislature has been willing to come. What makes this difficult is that they also disagree on additional expansion of gambling either through the race tracks or fraternal organizations. The federal law that makes this all legal says that the only way in which you can have the kind of revenue sharing that the legislature clearly wants to have and was embraced in the 16 % figure of the other compact, the only way you can have that is if there is some degree of exclusivity for the gambling franchise granted to

the tribal authorities, but it doesn't say how much exclusivity and it doesn't say how much exclusivity buys what percentage. That's what has to be negotiated out. And there's a lot of movement to violate that exclusivity. I mean, the race tracks, the one wants slots, everybody, every business interest in the state seems to be lining up, asking for slots as an economic development measure. There is one area of agreement apparently, and that is the tribes in the legislature have agreed that they will pay back with a, oh, under the old 16 % formula, they do seem to have agreed on that. Yes, and that was a major hurdle for a while. Max, I wanted to ask you, give me a little bit of history with the gaming issue and why this issue has not been resolved in the previous legislative sessions. Well, of course, this actually began in earnest under the administration of the previous governor, Bruce King. So we're going back here over five years and more. The federal legislation that sets this up

was passed in the early 90s and it allows states and tribal authorities to enter into compacts or agreements. And one of the provisions has to be is that if any kind of gaming broadly defined in certain categories is permitted, any place in the state, then it has to be permitted in places where there are tribal authorities in Indian reservations. And the state has very limited ability to regulate or decide what kind of gambling can take place under the federal law. And it is important to remember that we're dealing with sovereign tribal authorities who have unique status under our constitution, who had original ownership claims to land that were negotiated away in return for certain treaty rights. So it's complicated. But this is sovereign sovereignty clearly subject to government regulation. I mean, the federal government has had, you can have gambling, but you must

exceed to certain regulations. One of the issues the governor didn't mention is to what degree the finances of these casinos are going to be available to the public. That's another issue there and dear to my heart as the owner of a newspaper. I obviously think that there ought to be complete disclosure. The tribes are very reluctant for a variety of reasons to do that. One of the arguments is this sovereignty, as Max said, but in this particular case, this is a deluded kind of sovereignty. The tribes can't do just anything they want in gaming. They do have to make reports, for example, to the state already. And then there's this question of how much of those reports and what kind of a time frame will be made available. So there are some complications here. I think some of the legislators would probably say, let's throw this into the courts and let the courts decide it. You don't think that they'll get to it this session? If I had to bet, I'm not sure which side I would come down on if I really

had to bet whether they would. They've got a lot on their plates this time. They could let it go and just let it go and see if the governor wants to call a special session. See if it comes up next time. Well, thank you. And then there is a contingent, a fairly strong contingent, within the legislature that actually doesn't want to have gambling at all would prefer to get rid of it. So that would be up to the courts to do something as drastic as that. Is that one of the reasons why this has not been resolved because of that? Well, that's clearly one of the issues. I mean, it was a close call to expand gambling in this state. One vote in the middle of the night proved the last compacts with the 16 % revenue share. And the public, when we authorized through a ballot measure, the state lottery, you know, that was close as well. So I mean, there's a big community in the state would be, would be perfectly happy to see all gambling go away. And then

we've got just so many different players. It's hard to get everyone together. And you can't physically have the 15 tribal authorities sit down in a room with the 112 legislators. And the legislature doesn't vote as 112 people. It votes as two separate houses, you know, with differing rules and procedures. It's just playing a multi -faceted game. And no one knows how the courts would decide. It's pretty embarrassing, actually, at this point. I mean, it's fairly clear that what the compact that is in place is almost certainly illegal. The revenue sharing level is too high. Well, that has already been determined. That has been determined. Well, not definitively. Well, that's why the interior secretary Bruce Babidin said that. Well, he didn't really say that. He just really said nothing. Right. He declined to sign off on the men that we are all speculating. That's a reason he declined to sign off on them is because of. So everything is still pretty nebulous when it comes to this. Speaking of gambling, you did mention the lottery a minute ago.

And I noticed the governor didn't say a thing about how the declining share of lottery revenues will be, it should be expended in education, which is another issue that the legislature is going to have to grapple with. 60 % of the lottery revenues go to school construction, 40 % to scholarships. A lot of students in the state have gotten used to the fact that they're going to get a free ride through the university system if they've stayed in school, made good grades. But the lottery revenue is declining. And it cannot support that full 40 % to scholarships any longer. The legislature is going to have to figure out whether it's going to keep that program going, which it probably is, but on what turns. It can't be a full free ride. It doesn't seem like for everybody without certain, without dipping into other sources of revenue. Well, let's move on to other issues that the governor talked about today. And let's talk about when we can frame it in any way we want. He talked about reducing crime, and that was by introducing more money for a super max security prison in Santa Rosa. And let's talk about education, too, together. I know that I think he mentioned,

actually, he did not mention how much he wants to increase the budget for either one of those, but we do know that it's 7 .8 % for corrections in prisons and 3 .3 % for education. Is that correct? Yes, that's correct. And the crime, the reduced crime package focused almost entirely on prison construction issues. There was a little bit of discussion about a DWI package, but putting more officers on the street. Well, actually, only putting on more officers that have already been authorized. That's right. On one commitment, there wasn't a call for additional officers. And I was struck linking this with education by a dichotomy. On one hand, in the case of education, he's been talking that we need to have merit accountability, more qualifications, more standards, but his response to dealing with the problem with filling the 90 vacancies and police

officers was to reduce qualifications. And I suspect that some people would think that that might not be, you know, the appropriate response. We already put more people together as more people as a percentage of our population in prison than we have ever done in the past. And it's not precisely clear to me how building a supermax prison is going to result in a reduction of crime. We've had a reduction of crime in the country over the last five or six years. People are debating over why that's come about. But a lot of people think it has a lot to do with changing demographics, the aging population, and with the fact that the economy is doing so well. It was interesting to me that he went out of his way to say that the state of the Department of Public Safety, which is the state police and the corrections department, is good. When, by all accounts, it's really not so good that the state police in particular have been badly demoralized by the governor's stand on

legalizing, decriminalizing some drugs. I mean, he sort of went out of his way to say, you know, things are real good when I don't think you can really say that. Well, he also did spend a lot of time in tourism. On tourism, was that a surprise? Well, he spent a lot of times in tourism touting a successful ad in publicity campaign. He pointed out that it's the second largest industry in the state. I would suggest that tourism is the second largest industry in the state. The state is not doing well economically, and that's a reflection on the lack of a successful tourism strategy in the state. Yes, I mean, I think one of the things, really