New Mexico Gov. Wants Tax Cuts, Renewable Energy
Date: 18-Jan-07
Country: US
Author: Jim Christie
The Democrat also pressed for expanding state health-care programs and for a focus on his Southwestern's state's water issues. His far-ranging state-of-the-state address was delivered in Santa Fe, New Mexico and monitored in San Francisco.
Often mentioned as a potential presidential candidate from his party's moderate wing, Richardson urged lawmakers to resist the urge to spend too much of the state's surplus of more than US$700 million, fueled by royalties from natural resources, though he called for an additional US$293 million for schools.
"We must maintain fiscal discipline," he said in his speech, reminding lawmakers he won an easy reelection last year.
"We must continue to cuts taxes, protect our high bond rating, and balance the budget," Richardson added. "At the same time, I am insisting that we put aside at least 10 percent of the budget in reserve. I will accept nothing less."
Richardson called on lawmakers to approve four initiatives in the first 30 days of their 60-day session: raising the state's minimum wage to US$7.50 an hour, creating an energy authority that would transmit power from solar, wind and other renewable sources, improving roads and supporting more than US$123 million in tax cuts.
"When we are blessed with additional resources, I believe we have responsibility to return some of those resources to the people," he said. "Through targeted tax cuts, I believe we can help working families, support our military and continue to create high-wage jobs.
"Let's go a step further," he added. "Let's eliminate the state's income tax for active duty members of the military."
For New Mexico to recruit new industries, Richardson called for a tax cut for investment management firms and a tax credit to encourage investment in the state's high-tech companies.
As part of his energy plan, the former US Secretary of Energy said he wants to require utility companies to produce 15 percent of their power through renewable resources by 2015 and 25 percent by 2020.
"We can, and should become the first state in the country to use 100 percent renewable energy in government buildings," he added. "We should also provide tax credits to promote green offices and homes, create an energy innovation fund to develop clean energy projects and give consumers a one-month tax holiday to purchase energy-efficient appliances."
He also urged regulations to slash pollution from motor vehicles: "Rather than wait for Washington, I propose adopting tough carbon emission standards for new cars and trucks sold in New Mexico. Tough standards will cut vehicle emissions by 30 percent within the next 10 years."
He proposed "an advanced coal-tax incentive. This will help ensure that any new coal-fired power plant built in New Mexico will install state-of-the-art pollution controls and achieve significant carbon dioxide reductions."
Richardson also called for a focus on his state's water needs and for expanding health-care insurance to some of the more than 400,000 uninsured residents in his state.
He suggested extending state health insurance to those with incomes of 100 percent of the federal poverty level and expanding a state health program for middle-class adults. He also urged support for stem-cell research at the University of New Mexico.
