“My opinion is that they should have judged her on her professional qualifications,” the Governor said.

Holguin’s nomination got caught in the crosshairs of an internal fight over control of the Democratic Party and controversy over state environmental regulations.

Holguin managed the 2008 political campaigns of Sens. Tim Keller and Eric Griego. The duo knocked off then-Democratic Sens. Shannon Robinson and James Taylor a the June primary election that was considered a victory for progressive voters. In November of that year Tim Eichenberg defeated Republican Diane H. Snyder.

The political upheaval split Democratic lawmakers into rival fractions. And incumbent lawmakers from both political parties charged that several nonprofits had improperly influenced the legislative elections.

The losing lawmakers sued the nonprofits, a complaint later dismissed by state courts. Meanwhile, the state filed a lawsuit to force the nonprofits to disclose the origin of the money that had paid for what they said were educational mailers critical of the state lawmakers who later lost. A federal judge shot down the state’s lawsuit last year, and the state has appealed.

Holguin in an e-mail expressed surprise and disappointment at Tuesday’s vote.

“Since July, I’ve served on the Environmental Improvement Board in a thoughtful and principled manner,” she said in the e-mail. “I have a long track record of working on conservation in New Mexico. I will continue to advocate for the responsible stewardship of our natural resources and the public health, safety and welfare of New Mexicans.”

A tally sheet of the Senate vote shows that 10 Democrats joined 15 Republicans to reject Holguin’s nomination.

They were Linda Lopez, David Ulibarri, John Arthur Smith, John Sapien, Bernadette Sanchez, John Pinto, Mary Kay Papen, George Munoz, Howie Morales and Richard Martinez.

Bernadette Sanchez, in particular, spoke out in opposition to Holguin’s nomination on the Senate floor.

Sanchez’s constituents in 2008 received educational mailers sent out by the nonprofits before that year’s primary election. Sanchez did not face an opponent.

All 15 Republicans voted against Holguin’s nomination too.

It’s hard to discern what led to that, but also in play in Holguin’s nomination is an ongoing battle over state environmental regulations.

An organization has requested that the Environmental Improvement Board roll back New Mexico’s emissions to 25 percent below their 1990 levels by 2020 — far below anything being considered at the federal level and something critics say would devastate the state’s economy.

Neri Holguin

A political battle over control of New Mexico’s dominant party played out on the Senate floor Tuesday over an unexpected issue: an Albuquerque woman’s nomination to a state board. Confirmations in the Senate are usually uneventful and state lawmakers usually speak glowingly of the nominee. But that wasn’t the case Tuesday, when the state Senate rejected the nomination of Neri Holguin to the state Environmental Improvement Board by a vote of 17 to 25.

“I don’t think a person who works on political campaigns should be confirmed. It’s a conflict of interest,” said Sen. Bernadette Sanchez, D-Albuquerque.

Holguin managed the 2008 political campaigns of senators Tim Keller and Eric Griego. The duo knocked off then-Democratic senators Shannon Robinson and James Taylor in the June primary in what was considered a victory for progressive voters. In November of that year Tim Eichenberg defeated Republican Diane H. Snyder

The political upheaval split Democratic lawmakers into rival fractions. And it led incumbent lawmakers from both political parties to charge that several nonprofits had improperly influenced the legislative elections.

The losing lawmakers sued the nonprofits, a complaint later dismissed by state courts. Meanwhile, the state filed a lawsuit to force the nonprofits to disclose the origin of the money that had paid for what they said were educational mailers critical of the state lawmakers who later lost. A federal judge shot down the state’s lawsuit last year, and the state has appealed.

Holguin couldn’t be reached for comment Tuesday.

The strained feelings bubbled up on the Senate floor following Tuesday’s vote in which several Democrats joined most Republicans to reject Holguin’s nomination.

“Suddenly to develop scruples is disingenuous and incredibly hypocritical,” Sen. Gerald Ortiz y Pino, D-Albuquerque, said, chastising his colleagues for questioning possible conflicts of interest.

Added Sen. Eric Griego “We have lobbyists who represent corporations on these boards. We have industry folks on boards. I think this is a reason why we need webcasting and why people need to know what happens up here. I’m learning a lot more about this body the more time I spend here.”

Sen. Tim Keller, D-Albuquerque, also chimed in.

“To see this done just because she has done campaign work that was above board–we took it out on [this] woman,” Keller said.

Those comments drew a response from lawmakers in the rival faction.

“We are being questioned as far as this vote,” replied Bernadette Sanchez. “I knew what I was doing when I voted against this person on this board. We have a right to vote no on this.”

Sen. President Pro Tem Tim Jennings, D-Roswell, said he voted for Holguin but was troubled by what he called nonprofits interfering in political campaigns.

“It’s about the spirit of fair play,” Jennings said. “Corporations and businesses, if they make donations, they have to report contributions. But then they don’t apply to nonprofits. Some of the things that have happened is that nonprofits have used government money to influence elections.”

The nonprofits have repeatedly denied contributing money to political campaigns.

Also in play in Holguin’s nomination is an ongoing battle over state environmental regulations.

An organization has requested that the Environmental Improvement Board roll back New Mexico’s emissions to 25 percent below their 1990 levels by 2020 — far below anything being considered at the federal level and something critics say would devastate the state’s economy.

Holguin has sat on the environmental board for months. But at least some senators didn’t think that was a good thing.

“I was little afraid of politicizing this extremely important board,” said Sen. John Ryan, R-Albuquerque. “I don’t think having another person with an agenda would improve that board.”

Illustration by Keith Lewis

SANTA FE — A potential showdown is emerging between state lawmakers and Washington-bound Gov. Bill Richardson over where to look for cost savings.

State lawmakers, grappling with a projected half-a-billion-dollar budget shortfall, were told Tuesday they could limit the pain by retrieving nearly $200 million in unspent money locked up in 7,800 state-funded but unfinished brick-and-mortar projects around the state.

But whose projects would the money come from — the governor’s, state agencies’ or from lawmakers’ projects?

Richardson’s views still matter. Even though President-elect Barack Obama nominated the governor as U.S. commerce secretary on Wednesday, Richardson will retain his position in New Mexico for a portion of the 2009 legislative session. The governor said in a press release Wednesday that he isn’t resigning as the state’s chief executive until he’s confirmed by the U.S. Senate.

New Mexico finances brick-and-mortar projects through a process called capital outlay in which the Legislature and the governor divvy up the money. In recent years, the money earmarked each year for brick-and-mortar projects –- also called “pork” by critics -– often eclipsed $500 million.

Legislative staff said 130 projects deserved scrutiny, most of them sponsored by Richardson and state agencies. Tapping those projects alone could produce more than $170 million for the state’s general fund, which funds day-to-day operations, said David Abbey, the director of the Legislature’s budget arm –- the Legislative Finance Committee.

But among the potential targets is a multimillion-dollar equestrian facility proposed for the state fairgrounds in Albuquerque — a project Richardson supports, even putting $25 million of capital funds toward the project.

His spokesman and budget director have both publicly stated the governor thinks placing it there makes sense because the fairgrounds can accommodate such a project, they say. It is unclear how the governor might react to the project winding up as a potential target for cutting.

But one thing is clear. Even as legislative staff crafts a list of potential targets, the governor’s staff is busy putting together its own list of possible cuts. Rick Martinez, deputy secretary at the state Department of Finance and Administration, told state lawmakers Tuesday that the agency would like to present its list when it is complete.

An updated revenue forecast is due next week and that will give lawmakers and Richardson new estimates of how much money the state should expect in the current fiscal year and in the 2010 budget year, which starts in July.

Meanwhile, oil and natural gas prices, a major barometer for state revenues, remain volatile after falling in recent months, leading some to predict much lower revenues from broad-based taxes — gross receipts and income taxes.

In October, Richardson ordered executive branch agencies to trim spending and impose a freeze on hiring. The governor also said he would ask the Legislature to eliminate some previously approved capital improvement projects to save money.

Universities and other institutions of higher learning have already frozen wages and cut back on travel and other expenses. Senate President Pro Tem Tim Jennings, D-Roswell, meanwhile, has told school districts in a letter to prepare for spending cuts and possible layoffs to cope with the state budget gap — a move Richardson criticized as “irresponsible and premature.”

That state lawmakers pulled out the budgetary pruning shears on Tuesday, a month and a half before the Capitol’s quiet, art-lined hallways transform into bustling avenues teeming with lobbyists and spectators, spoke of how serious the situation is. The session starts Jan. 20.

“There’s obviously a lot of sensitivity about whose ox will be gored in this effort,” Abbey told lawmakers Tuesday.

It was apparent not everyone was entirely comfortable with taking money out of unfinished projects.

“What if people lose their jobs because we are moving that money?” asked Rep. Edward Sandoval, D-Albuquerque.

Sen. Diane Snyder, R-Albuquerque, added that people in small communities around the state “are hysterical” because they are worried they will lose state money for authorized projects.

“There is a big rush to get their RFPs and contracts ready so the money is encumbered,” Snyder said.