I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
State senators weren’t agreed Friday about how to reform a state agency at the center of an investment scandal. But one thing’s for sure: they’re spoiling for a fight with Gov. Bill Richardson over who should control the State Investment Council.
“If that’s a fight the governor wants to have, let’s engage,” said Sen. Kent Cravens, R-Albuquerque.
The lawmakers’ combativeness surfaced during a presentation Friday morning of competing proposals on how to change the State Investment Council’s governing structure.
Part of the lawmakers’ anger arose out of Gov. Bill Richardson’s veto last year of legislation that effectively gave the Legislature more say over who sits on the council. Currently, the governor controls a majority of SIC appointments.
Since then, the SIC has moved to the center of an ever-widening investment scandal with ties to New York state and California at the same time that is the subject of a federal criminal investigation and a Securities and Exchange Commission probe.
The investment scandal has galvanized state lawmakers this session and talk of reform has gained steam.
“He had his chance to sign the bill last year,” said Sen. Linda Lopez, D-Albuquerque, who chairs the Senate Rules Committee and appeared to support broad, comprehensive reform.
Sen. Cisco McSorley, D-Albuquerque, added that whatever reform senators adopted lawmakers should stand unified to send a message to the governor.
Exactly what that reform would look like was a subject of debate, however.
A division quickly emerged during Friday’s discussions between lawmakers who liked legislation that would mirror last year’s bill – the one giving the Legislature more of a say who sits on the Council — and those who backed more substantial reform.
“These are structural problems that go far beyond one or two seats on the board,” said Sen. Tim Keller, D-Albuquerque, a sponsor of one of the three proposals. Then referencing a recently released review of the State Investment Council, Keller reminded lawmakers that only three of the report’s 80 recommendations had to do with who sat on the Council.
But Sen. Minority Leader Stuart Ingle, R-Portales, said lawmakers needed to think strategically and should pass what is most likely to pass.
“I think we are going to be dealing with this for the next three or four years, but we need to deal with the board now,” Ingle said.
Added Sen. Peter Wirth, D-Santa Fe: “We have a bill right now that went through both houses and was vetoed.”
“It would be tragic if nothing were to happen,” Wirth said.
The three bills before state lawmakers Friday may seek reform, but they differ on important details.
One, sponsored by McSorley, would remove the governor from sitting on State Investment Council.
Meanwhile, Sen. Steven Neville, R-Aztec, has resurrected the bill that he sponsored last year and that Richardson vetoed last year that would give the Legislature more say over who sits on the State Investment Council.
This year Neville has added a provision that requires the State Investment Council to appoint the state investment officer. Currently, the governor appoints the State Investment Officer, the agency’s top staff member.
It also would require several SIC members to have at least 10 years of investment or finance experience.
The most comprehensive reform proposal, however, comes from Keller.
It would lessen the governor’s authority over the State Investment Council and reduce the portfolio of the State Investment Officer. For example, the State Investment Council, and not the governor would appoint the State Investment Officer; in addition, the Council would have the power to hire and fire advisers and outside managers helping the agency. Currently, that authority rests with the State Investment Officer.
Other changes contemplated in Keller’s bill would require more investment expertise among SIC members, so that they possess greater know-how to assess investment decisions.
In essence, the bill would de-centralize authority, taking it out of the hands of the State Investment Officer and giving it to the Council, Keller said.
All of the reform bills take some cue from a just-completed outside review of the State Investment Council that recommended significantly reducing the governor’s power over the agency.
That report found that Richardson’s influence over the State Investment Council “is more far-reaching than it is for governors in most of the 14 other states with similar funds,” according to Chicago-based consulting firm EnnisKnupp.
In addition, decisions on how to invest New Mexico’s $13 billion worth of endowment funds were made internally and largely without scrutiny from the board appointed to oversee the state’s portfolio, the report said.
While there was much debate among lawmakers Friday about what should pass, Lopez advised each of the bill sponsors that she wanted them to work over the weekend with staff to craft a proposal that consolidated elements of each bill.
“If we get something out of here Monday,” that would speed the reform bill on its way, Lopez said.
Whatever passes would have to clear both the Senate and the House, and then get the governor’s signature.
