Contact: Laura Banish, Public Information Officer, 955-6046
Press Conference Thursday
Espanola Mayor Joe Maestas is convening a press conference at 3 p.m. Thursday, Feb. 8 in support of House Bill 914, introduced by Representative Nick Salazar, and Senate Bill 767, introduced by Senator Richard Martinez, creating a Northern New Mexico Economic Development Fund. The press conference will be held outdoors, on the West Concourse of the Roundhouse.
Mayor David Coss and the Santa Fe City Council support this initiative. The Governing Body recently approved a resolution investing in northern New Mexico’s future by requesting that the Governor and the Legislature join communities in northern New Mexico in a cooperative effort to assess the regional impacts arising from the award of the new Los Alamos National Laboratory management contract. The change of management means the lab is no longer tax-exempt and that the local economy stands to benefit from new tax revenues. The City of Santa Fe supports the investment of an equitable share of gross receipts tax revenues resulting from the new Lab contracts in plans, programs and projects that will build a foundation for a self-sufficient and sustainable economy for northern New Mexico. Santa Fe New Mexican 01/20/2007, Page A07
COMMENTARY Leaders say invest LANL taxes in Northern New Mexico By Mayor David Coss and Commissioner Felipe Martinez Los Alamos National Laboratory was established more than 63 years ago. Today, the Lab’s budget of more than $2 billion represents a significant economic engine. The lab’s total work force of almost 15,000 makes it the largest employer in Northern New Mexico. However, the lab has had a minimal impact on the region’s economy outside of Los Alamos County. The lab’s work force is primarily distributed among the counties of Los Alamos (44 percent), Santa Fe (23 percent), Ro Arriba (21 percent), Sandoval (5 percent), Bernalillo (3 percent), and Taos (2 percent). As a region, Northern New Mexico continues to lose its best and brightest, and its economy remains isolated from the mainstream economy. Infrastructure is vitally needed. Venture capital investment is almost nonexistent. Despite the lab’s presence, the socioeconomic disparities that exist within the lab’s workforce area remain substantial. A comparison between two neighboring counties in the lab’s region, Rio Arriba and Los Alamos, using key economic indicators, clearly illustrates a stark contrast between the €˜haves’ and €˜have-nots:’ - In 1999, 1.9 percent of Los Alamos County and 16.6 percent of Rio Arriba County lived below the poverty line.
- The 2005 unemployment rate in Los Alamos County was 2.8 percent, while in Rio Arriba County, unemployment reached 6.6 percent.
- The 2003 per capita income in Los Alamos County was $48,541; in Rio Arriba County it was $20,720.
- In 2004, the average wage per job in Los Alamos County was $62,148; in Rio Arriba County, it was $23,382.
- Additionally, 24.5 percent of the population younger than 25 in Los Alamos County attained a bachelor’s degree, according to the 2000 census; in Rio Arriba County the percentage was 9.1 percent.
With the new lab contract come changes in its taxable status; gross receipts taxes must now be paid by the new Los Alamos National Security team. Prior to the change in taxable status, the lab was paying approximately $35 million in gross receipts taxes. Under its new status, LANS will be paying a total of about $90 million in gross receipts taxes. The approximate allocation of the total gross receipts tax is $40 million (44 percent) to Los Alamos County and $50 million (56 percent) to the state of New Mexico. Communities outside Los Alamos County have lost gross-receipts tax revenues as a result of the changed tax status; however, the losses are difficult to quantify. LANS announced a $175 million budget shortfall and a major cut of up to 600 jobs, with more expected in the future. The job cuts will primarily target contractors and maintenance personnel, not LANS employees. These cuts have shocked a fragile economy and disproportionately impacted communities outside of Los Alamos County. During this legislative se ssion, Gov. Bill Richardson and the New Mexico State Legislature have an historic opportunity to invest a share of the lab’s gross receipts tax revenues in Northern New Mexico. Area local governments, led by Española Mayor Joseph Maestas, are backing legislation to create a fund to invest $20 million per year for seven years (the initial LANS contract period) for economic development projects that would build a sustainable economy. Building an economy for Northern New Mexico that substantially closes the gaps between the haves and have-nots can only happen through such equitable, substantial and sustained investment. The time is now to address the needs of Northern New Mexico! New Mexico cannot move forward while Northern New Mexico lags behind! This commentary was signed by Santa Fe Mayor David Coss, Ro Arriba County Commissioner Felipe Martinez, Mayor Bobby Duran of Taos, Taos County Commissioner Charlie Gonzales, Santa Fe County Commissioner Harry Montoya and Española Mayor Joseph Maestas.
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