Article courtesy of the Las Cruces Bulletin
Photo courtesy of the International Business Accelerator
By Samantha Roberts
Tuesday, April 5, was a busy day for legislators in Las Cruces, as Economic Development Secretary of New Mexico Jon Barela visited the City of Crosses and Gov. Susana Martinez signed three crucial bills in Santa Teresa.
Barela, who spoke at the Mesilla Valley Economic Development Alliance luncheon, Business on the Border, said he was excited about the future of New Mexico in regards to kick starting new jobs and spending.
Special guests from Union Pacific attended the event, in honor of the new bill Martinez signed later that afternoon that eliminated a tax on diesel fuel in New Mexico and contributed to the arrival of the new Union Pacific plant in Santa Teresa.
“This is a cornerstone to creating jobs in southern New Mexico,” Barela said. “This $400 million project will create 3,000 construction jobs, 600 permanent jobs and many more will stem from that.”
In addition to the diesel tax bill, Martinez also signed the vehicle overweight bill, which Barela touched on during his speech. According to Barela, this bill will spur new job growth and encourage positive trade along the U.S.-Mexico border.
In addition to discussing the bills, including a third bill that will give border authority more power, Barela addressed the audience on key economic principles that he said will keep New Mexico competitive to bring in large corporations, such as Union Pacific.
The first principle is to balance the budget without increasing taxes.
“Although this was a tough session, we did it,” Barela said, adding that New Mexicans can have security in the future of the Land of Enchantment. “We also did it in a bipartisan manner. While Texas, Arizona and California are still dealing with their $1 billion shortfalls, New Mexico is ready for the future.”
The second principle was to establish a competitive regulatory environment, a reason Barela said he established a small business task force.
“We want to make New Mexico more business friendly,” he said, “without compromising people’s health, safety or the environment.”
Third, Barela said he wants to create a competitive tax environment, looking to other states as soft guidelines.
“Arizona has raised the bar,” he said. “Despite their huge debt, they have slashed corporate taxes, income taxes, property taxes, increased funding to job incentive programs and lowered sales tax. They believe the private sector creates jobs, and we need to take that to heart. We can’t ignore what the other states are doing.”
Other principles Barela touched on during his speech, included: a competitive local government structure, a competitive public education environment, increased capital availability and an environment that fosters innovation, an initiative that he said is crucial to the future of New Mexico.
“We are a global environment, and it is important we see it that way,” Barela said. “We need to stay up to speed with global businesses, jobs, etc. The Chinese maybe be able to duplicate things, but they do not have the innovation.”
In addition to his principles, Barela briefly touched on federal issues, specifically the nation’s $14 trillion debt.
“We need to correct the climate in Washington,” he said. “All of the principles can fit together – federal, state and local.”
Following a questions-and-answer session, a majority of the attendees caravanned to Santa Teresa to see Barela’s powerful speech put into effect with the signing of three bills.
Key legislative players who helped getting the bills passed and who also attended the event included Zoe Richmond, Union Pacific’s director of public affairs, Arizona and New Mexico Corporate Relations; Sen. Mary Kay Papen; Rep. Jane Cullbert; Rep. Mary Helen Garcia; Sen. Cynthia Nava; Barela; and, of course, Martinez.
While each bill has weight of its own, together these pieces of legislation marked a monumental day for southern New Mexico.
“We have hit a home run,” Garcia said.
Papen described southern New Mexico as “the stepchild that is often forgotten about,” adding that today would change everything.
“(Senate Bill 179 and House Bill 523 – Locomotive Fuel Tax Gross Receipts Deduction) allows us to compete with Texas,” Martinez said. “We need to be on the same playing field as Texas. They don’t have a tax on locomotive fuel, and, now, we don’t either.”
Martinez also signed House Bill 24, authorizing special permits for the operation of certain overweight commercial vehicles near the southern New Mexico border, and House Bill 322, granting additional powers to the Border Authority.
