Bill Tags Windfall Tax for Counties

By Andy Lenderman, The Santa Fe New Mexican

Feb. 9–Northern New Mexico political leaders aim to capture part of a windfall tax and use the money to develop the economy beyond dependence on federal money associated with Los Alamos National Laboratory.

The goal of the Northern New Mexico Economic Development Fund is to cut into the state’s share of gross receipts tax paid by Los Alamos National Security LLC, the private company that operates the lab for the government.

House Bill 914 would divert $20 million a year for seven years into the fund. The money would be used to expand airports, pay for public transportation and a water project in Espanola, for example.

“New Mexico cannot move forward while Northern New Mexico lags behind,” Espanola Mayor Joseph Maestas said at a news conferenceThursday. Members of Gov. Bill Richardson’s office did not take a position on the bill when asked Thursday.

Richardson is focused on other issues like the minimum wage, teacher salaries and renewable energy, a spokesman said.

The lab’s annual budget is about $2.2 billion, and most of that money comes from the U.S. Department of Energy. Roughly 13,000 permanent and contract workers are employed there. The lab is expected to pay about $90 million in gross receipts taxes this year. Of that, 56 percent would go to the state and 44 percent would go directly to Los Alamos County.

There’s more tax this year because the private company must pay more than the University of California, which used to run the lab.

Los Alamos County is the wealthiest in the country, according to 2003 Census data. But nearby Rio Arriba County lags behind, with a 6.6 percent unemployment rate, 16.6 percent poverty rate and average wages far below Los Alamos.

“Despite the presence of the lab and the billions of dollars from its budgets, the socioeconomic disparities that exist within the lab’s workforce area remain substantial and are expected to worsen,” Maestas wrote in a report.

The measure is also supported by Santa Fe Mayor David Coss and the City Council.

“We’re very proud that the city is 100 percent behind this legislation,” Coss said.

Coss also said it’s past time for Northern New Mexico to move beyond being “at the bottom of every economic indicator.”

Santa Fe, Rio Arriba and Taos county commissioners have also pledged their support to the concept of an economic development fund.

Specific projects outlined in a proposal written by Maestas include: $12.5 million for the Espanola surface water project; $3.5 million for expansion of the airport at Ohkay Owingeh; $1.1 million for a regional public transportation project; $1 million for expansion of Santa Fe Municipal Airport; and $100,000 for an economic development plan.

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Copyright (c) 2007, The Santa Fe New Mexican

Distributed by McClatchy-Tribune Business News.

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