New Mexico in Focus; 410; Albuquerque Economic Growth

SRT Captions File Generated by MXFplus MAJOR FUNDING FOR "inFOCUS" IS MAJOR FUNDING FOR "inFOCUS" IS CHARITABLE FOUNDATION, HEALTH, EDUCATION, >> Murray: IT'S BEEN A ROUGH

WITH NEW MEXICO'S ECONOMY THAT DISCUSSION NEXT >> Murray: GOOD EVENING, I'M RICK MURRAY FILLING WE WERE ORIGINALLY SCHEDULED ON THE SANTA FE PUBLIC

TODAY, WE'RE TALKING IT WAS IRRESISTIBLE FOR MOST MARKET CLIMB TO UNBELIEVABLE MANY INVESTORS JUMPED IN, LIFE WAS GOOD IN THE OLD DAYS. TODAY IS A MUCH DIFFERENT TODAY MANY PEOPLE ARE USING HERE IN NEW MEXICO, MEXICO'S ECONOMY IS SLOWING CONFUSING SIGNALS WONDERING, SHOULD I BUCKLE HERE TO HELP US SORT SOME MIKE SKAGGS, PRESIDENT OF NEXT A DEPARTMENT OF DEFENSE ALSO HERE TO TALK HE'S A SENIOR ECONOMIST FINALLY, GARY TONJES,

THANK YOU, GENTLEMEN, I MEAN, IS THAT FACT >> Waldman: I WOULD SAY IT IS GPD GROWTH IN THE THIRD THAT'S LOW. WE HAVE BEEN RUNNING AT 4%, BUT 4% or 5% IS UNSUSTAINABLE 2.5% PERCENT, THAT'S WHERE SO, COMING DOWN FROM INTO THE VALLEY, BUT JUST AND WE ARE NOT GOING TO SEE THIS IS REALLY WHAT IS CALLED AND IT'S UNLIKELY, UNLESS, PROBLEMS HAPPEN IN THE PRIVATE SO, I THINK IT'S, RIGHT NOW, I DON'T THINK THERE IS GOING >> Murray: WHEN WE LOOK AT ALL RATES, HOUSING PERMITS, THOSE

THAT EFFECT THOSE TYPES OF -- EFFECT WHAT GOES >> Tonjes: WELL, THAT DOESN'T, HAD A NUMBER OF DIFFERENT WORKING TO RECRUIT THAT HAVE WE WANT TO WAIT AND SEE HOW PERHAPS THERE IS GOING TO BE BUT I AGREE WITH LARRY, IN FACT, I THINK THAT AT LEAST FOR THE NEXT YEAR >> Murray: AND WE HAVE GOT ALL ONE WITH THE DEPARTMENT HOW DID THAT ALL COME ABOUT? >> Skaggs: WHAT REALLY DROVE STARTED ABOUT 4-5 YEARS AGO, LAYOFFS IN TERMS OF EARLY CONTRACTORS, THEY ARE DOWN

AND THEN THEIR SPENDING THAT'S ABOUT HALF OF WHAT IT SO, TO MAKE SURE THAT THIS ITS ECONOMY AND GROW THAT THE DEPARTMENT OF ENERGY AND SO, THE FIRST THING WAS AND THAT'S WHAT NEXT AND SO, IN ITS STAGE NOW, IT ORGANIZATION TO TAKE THE IDEAS >> Murray: THAT'S A GOOD TOPIC NEW MEXICO AND ALBUQUERQUE HAS IS THAT A GOOD ECONOMY TO BASE >> Waldman: WELL, YOU WANT YOU WANT AS MANY DIFFERENT SECTOR OF THE ECONOMY HAS THERE HAS BEEN OVERDEPENDENCE MEXICO, AND WE ARE STILL,

IN THE NATION IN TERMS BUT IT'S BEEN REDUCED, GOVERNMENT EMPLOYMENT HAS GONE IT'S NOT A TERRIBLE THING. BUT WE'D BE BETTER SERVED OF INDUSTRY, MORE >> Murray: WHEN WE TALK I MEAN, OBVIOUSLY, IS THAT OR IS THAT SOMETIMES AT THE TEENAGER AND SAYING, >> Tonjes: I THINK THAT BUT WE WERE SORT OF ON THAT AND HAVE BEEN FOR A VERY LONG GREAT OF A DEPENDENCE SO, WHAT WE ARE TRYING TO DO,

INTERESTED IN DOING, IS THROUGH THE DIVERSIFICATION AND ONE THING THAT I WOULD SAY NATIONAL LABS' REDUCTION OF THE ASIAN FLU ON ALL THINGS AREN'T STELLAR. THE ECONOMY IS NOT BOOMING. BUT WE HAVE ACTUALLY MADE IT >> Murray: GO AHEAD. >> Waldman: EXACTLY. TIMES WERE REAL TOUGH TWO OUR EMPLOYMENT GROWTH WAS THAT WAS AFTER THE ASIAN FLU ON ALBUQUERQUE'S HI-TECH ON THE STATE'S MINING SECTOR, SO, 1% GROWTH IS NOT VERY BUT NOW ALBUQUERQUE'S -- WELL, THIS IS GOOD. ALL THAT STUFF IS BEHIND US THINGS ARE LOOKING MUCH

>> Murray: WELL, LET'S TALK WE HAVE SEEN TEN YEARS IN THE REST OF THE COUNTRY, MEXICO SAW REALLY -- DID >> Waldman: NEW MEXICO IS MANY OF OUR SECTORS RUN -- WE HAD GOOD TIMES IN '93, THOSE WERE EXCELLENT YEARS WE HAD EMPLOYMENT GROWTH BUT THOSE WENT AWAY, AND THEN THEN THE ASIAN FLU HIT; 1%. WE JUST DON'T HAVE THE BIG BUT WHAT'S HAPPENING THERE AND, FOR EXAMPLE, WE WERE ON THE DOWNSIDE WHEN GROWING, AND THEN WHEN SO, REALLY, WE'RE TOO SMALL

IT'S NOT A BAD THING. WHEN THE U.S. ECONOMY WENT WE SURVIVED. OUR GROWTH GOT DOWN TO 1% >> Murray: AND THAT'S ONE UP, TOO, IS THAT WHAT HAPPENS DIFFERENT THAN WHAT HAPPENS AND SOMETIMES THEY ARE HURTING ACTUALLY GOING ON HERE >> THE CASE IN NEW MEXICO NOW. THE RURAL ECONOMY IS JUSTRTING THERE IS NO JOB GROWTH. IN THE LAST YEAR, JOB GROWTH. THE RURAL ECONOMY IS JUSTRTING OF COURSE, WE LOST ALL THOSE SO, THEY TOOK THE BIG BRUNT. WHEREAS ALBUQUERQUE, SANTA FE, >> Tonjes: EXCEPT THIS YEAR LOTS OF NEW COMPANIES. >> IN NEW MEXICO, THERE HAVE

IN DECADES PERHAPS, LOTS ANNOUNCED THAT THEY ARE GOING I MEAN, LAS VEGAS AND GRANTS >> Waldman: CARLSBAD. >> Tonjes: MOSTLY BACK OFFICE >> Skaggs: YOU HAVE GOT OUR BIGGEST CLUSTER IS WE HAVE AN ELECTRONICS THAT'S HUGE. >> Murray: BORDER JOBS. >> Skaggs: THERE IS WITHIN ELECTRONICS, FROM PRIMARILY THE MIDWEST, TO THE AUTOMOTIVE PARTS TO THE BORDER, BECAUSE SOME CURRENTLY -- THE TWIN PLANTS IN MEXICO, AND THEY CAN SO, THEY NEED TO STAGE AND THAT OPPORTUNITY IS A VERY RIGHT NOW, AND THE RURAL

THAT'S ONE OF THE BIGGEST >> Murray: THAT'S WHEN ABOUT THE DIVERSIFYING WE CAN DO IN NEW MEXICO GET OFF THE PUBLIC DOLE YOUR ORGANIZATION, IS THAT >> Skaggs: YES, BECAUSE WE ARE ECONOMY, THE FUTURE ECONOMY, WHAT IS SANDIA, LOS ALAMOS, WHAT CORE COMPETENCIES EXIST THAT IS OUR UNIQUENESS. HOW CAN THAT PROPEL THIS INTO AREAS THAT CAN REALLY PAY SO, YOU WANT THE OPTICS, YOU LOOK AT ELECTRONICS, OF THE DIVERSIFICATION, THE TRADITIONAL ECONOMIES, WHICH WOULD BE JEWELRY, SO, IT'S A PRETTY BALANCED OF WHAT WE HAVE HAD,

THAT IS SOMETHING VERY, VERY >> Murray: AND ONE THING OBVIOUSLY WE HEAR ABOUT HOW ANY OTHER STATE AS FAR AS NEW DOES THAT END UP BEING IT'S OBVIOUSLY GOT TO BE >> Tonjes: FOR CERTAIN DEPENDS ON WHICH STATE FOR SOME, YES, IT'S AN ISSUE. THE ONE ISSUE THAT WE RUN THE BROAD APPLICATION OF GROSS WE TAX MANUFACTURING, WE ARE ONE OF THE FEW STATES NOW, BECAUSE WE HAVE SOME VERY INDUSTRIAL REVENUE BONDS, SO, NEW MEXICO, I THINK, YES, I THINK THE GOAL WE ALL

THE GOAL WE ALL WOULD HAVE THIS IS THE MOST ATTRACTIVE BE, WHILE STILL TAKING CARE >> Murray: LET'S TALK A LITTLE THERE IS A LOT OF CONTROVERSY, CORPORATE WELFARE, WHAT THAT BENEFIT IS, IS UP IN A NUTSHELL, EXPLAIN IT. WHAT IS AN IRB? >> Waldman: WELL, IT'S A WAY BECAUSE OF THE GOVERNMENT AND THE GOVERNMENT DOESN'T PAY SO, THE COMPANIES GET A TAX AND THAT'S THE DOWN SIDE. MANY PEOPLE LOOK AT IT THE CITY, THE STATE, THEY ARE GOING TO INSIST WELL, WHAT ARE WE GETTING WHEN YOU ISSUE REVENUE BONDS,

AND MOST OF THESE COMPANIES YOU EXPECT TO GET NEW JOBS. YOU EXPECT TO GET A LOT MORE YOU EXPECT THE FISCAL FLOW TO INCREASE, SO THAT THIS IS NOT WELFARE ANYBODY WHO THINKS THAT IS NOT YOU GIVE SOMETHING, AND YOU GET IT IN THE SHORT YOU GET A GOOD COMPANY HERE, YOU GIVE THEM, LIKE SANDOVAL $8 BILLION ON THE SECOND ONE, BUT YOU GET GOOD JOBS I MEAN, INTEL IS GOING

THEY ATTRACTED SUMITOMO, SO, WE ARE NOT GIVING AWAY WHAT WE ARE DOING IS TRADING, >> Tonjes: BUT IT IS TERRIBLY PHILIPS SEMICONDUCTORS, THAT'S NOT A GIFT, A GRANT. THAT REPRESENTS -- WHEN $400 MILLION IS THE AMOUNT THERE IS A TAX BREAK IN PHILIP'S CASE, I THINK IT THAT'S WHAT WE ARE TALKING BUT FOR THE CITY EVERY INDUSTRIAL RENUE BOND SO, THE CITY SAYS, ARE REVENUES THROUGH INCREASED

THROUGH OTHER TAXATION THAN -- >> Murray: AND PLAYING WE, AS A COMMUNITY THAT OFFERS SAY, HIRE THE NUMBER OF PEOPLE PAY THE SALARIES, OR PUMP IS THERE ANYTHING THAT WE CAN >> Tonjes: SURE. IN FACT, THE CITY CLAW BACK PROVISIONS WITHIN YOUR DOORS WITHIN THE FIRST YOU PAY BACK ALL THE TAXES, WE HAVE TO BE VERY CAREFUL IN THE CASE OF PHILIPS HERE HIT, AND THEY, LIKE EVERYBODY YOU DON'T WANT TO PENALIZE WE WANT TO HAVE OUR DOORS OPEN

CREATE QUALITY JOBS, SO THOSE >> Skaggs: WE ARE BUILDING AND OUR NEIGHBORS HAVE BEEN SO, WE ARE DOING A LITTLE BIT SO, A LOT OF THESE ISSUES I MEAN, THAT LONG AGO. >> Murray: THAT'S NOT UNCOMMON OF THE LITTLE JOYS OF LIVING WHEN YOU START TALKING AT THE TYPE OF COMPANIES THAT IS THAT SOMETHING YOU ALL WORK DO YOU HAVE A STRATEGY? HOW DO YOU PUT THAT STRATEGY WHO APPROVES THAT STRATEGY? >> Skaggs: THERE ARE A LOT IN THE CASE OF THE CLUSTER SO, THERE WERE A LOT A LOT OF PUBLIC PROCESS WENT WHAT THAT WAS INTENDED TO DO THEN GARY, HE TAKES THAT

INTO HIS TARGETS, SO HE HAS PURSUING COMPANIES TO KNOW >> Murray: I HAVE A REPORT BY THE RIO GRANDE FOUNDATION, IT WAS ACTUALLY FOUNDED BY HAL THEY BASICALLY CHALLENGE A LOT YOU ALL ARE PAINTING SAYING WE MISSED OUT WHEN WE GET CONFLICTING ABOUT THE NEGATIVE TAX OF TAXES, THE GROSS RECEIPTS EVERYTHING THAT WE IN NEW AND HE PUTS IT INTO WORDS >> Tonjes: I THINK THEY ARE WE HAVE HAD AN ANEMIC ECONOMY, EARLIER WHEN HE SAID WE DON'T HERE WE LOSE ALL

BECAUSE OF THE ASIAN FLU, FOLLOWING BASE, THERE IS SILLICON VALLEY, YEAH, OF SEMICONDUCTOR JOBS, AND WE DON'T REALLY HAVE MUCH WE DON'T HAVE OTHER SECTORS NOW, WE ARE STARTING AVIATION, AND AEROSPACE, THERE ARE A LONG LINE WE STILL DO NOT HAVE A GOOD >> Waldman: AND A LARGE ENOUGH WE NEED TO INCREASE THE SIZE AND, YOU KNOW, THAT'S WHERE AND IT'S HAPPENING. I MEAN, GARY JUST MENTIONED THERE MIGHT BE A COUPLE I CAN START TICKING OFF NAMES I MEAN, THERE ARE JUST A WHOLE

PART OF NEW MEXICO'S PROBLEM OF THE METRO AREAS, AND GARY GETTING A COUPLE, 3000 JOBS AND THEY ARE NOT GREAT JOBS, NOT BEEN THERE BEFORE, WE ARE ON OUR WAY. WE HAVE A SPECIAL OPPORTUNITY THIS IDEA OF CLUSTER WHAT YOU WANT TO DO IS NOT BUT ATTRACT COMPANIES THAT WE HAVE GOT LOS ALAMOS. WE HAVE GOT UNM ENGINEERING AND WE HAVE THE AIR FORCE SO, WE'VE GOT A LOT OF TALENT WHAT YOU WANT TO DO IS USE TO DO IS DEVELOP CERTAIN THEY GET TO A CERTAIN CRITICAL

UP HERE BECAUSE OF THAT'S THE WHOLE IDEA BEHIND, BEHIND THE NEXT GENERATION >> Murray: I WAS READING NEW MEXICO RANKED 7TH OBVIOUSLY SOMEONE IS DOING >> Tonjes: LARRY WAS TALKING LOOKING PERHAPS TO OUTPACE JUST THIS YEAR, THERE HAVE TO 20 DIFFERENT COMPANIES, SECTOR, THAT COLLECTIVELY OBVIOUSLY INTEL IS $2 BILLION NEW JOBS THAT THEY ARE GOING ECONOMY, PROVIDED THE ECONOMY >> Murray: WONDERFUL

WE HAVE JUST GOT ABOUT 30 > Skaggs: IT'S AN EXCITING YOU WILL SEE THE OPTICS BIO-TECH IS GOING TO BE >> Tonjes: WE HAVE TO KEEP THE BUSINESS CLIMATE AND TAX >> Waldman: BUT REALLY, I MEAN, FOR THE NEXT DECADE >> Murray: I FIND IT "BACK IN '92, '93." >> Waldman: YOU PICK OUT GOODS >> Murray: THAT'S ALL THE TIME THANKS FOR JOINING US, NEXT WEEK, WE WILL BRING WE'RE JUST ONE OF TWO STATES

NOW, DOES THAT LOST REVENUE WE WILL LET YOU KNOW. FOR EVERYONE HERE MAJOR FUNDING FOR "inFOCUS" IS MAJOR FUNDING FOR "inFOCUS(IS ENRICHING THE CULTURAL LIFE, ENVIRONMENT, AND SPIRITUAL CLOSED CAPTIONING PERFORMED