Raise revenues, and then — hemp for growth

Most New Mexicans understand that state government needs money to function. That’s underscored by the reality that the state’s general fund budget, as proposed, is roughly the same as it was 10 years ago. Judicious (and now, less-than-judicious) cuts have been made to the point that real harm is being done to education, the courts, other important government services and the state’s financial standing.

To stop the harm, we have supported efforts to close tax loopholes, find reasonable fees to raise and otherwise bring in more money for the state. House Democrats have done just that, approving a $6.08 billion budget that also includes some $250 million in new revenues.

This effort now goes to the Senate, where legislators also have been looking for new revenues (including proposing a gasoline tax) and eventually will end up on the desk of the governor. Susana Martinez, despite being anti-tax, must be persuaded — by citizens and her fellow GOP lawmakers — that closing loopholes and targeting fees is not raising taxes. She has said repeatedly she won’t allow the budget to harm New Mexico families. Draconian cuts in services, whether in the classroom or in the courts, will cause the harm Martinez is seeking to prevent.

Even if the governor agrees to targeted new revenues, that is only a small slice of what is necessary to fix New Mexico’s perennial woes. The state needs a thriving, growing economy so that tax revenues increase because the state is booming, not because government is taking more money from citizens.

In the final weeks of the Legislature, lawmakers should focus on legislation that could expand the current economic base, growing new businesses and supporting existing ones that are successful. There is legislation to adjust the $50 million a year film tax credit for inflation (House Bill 192) and to bring back solar energy tax credits (Senate Bill 41). The state is so broke, however, it might be unable — or unwilling — to invest in expanding successful sectors of the economy because it lacks the funds. That’s a shame.

But what about completely untapped fields? Both Republicans and Democrats understand that New Mexico is falling behind other states in innovations in agriculture, particularly legalizing some cultivation of industrial hemp. Several bills are floating around the Legislature. Lawmakers should find a compromise bill the governor will accept, pass it and encourage her to sign it (she has vetoed past hemp legislation).

This crop is versatile, would grow well in the New Mexico climate and is thriving just across the border in Colorado. Before our neighbor and 30-plus other states that grow hemp leave New Mexico in the dust, the state should act so that farmers can take advantage of this opportunity.

The state’s congressional delegation can help the effort by working at the national level to legalize the cultivation of industrial hemp. That way, there are no conflicts between federal and state laws. Already, 16 states are growing hemp for commercial purposes, despite the federal law. New Mexico is falling behind, and it does not have to — this state has an ideal climate for growing hemp and plenty of people who know how to farm.

For some, the plant’s resemblance to marijuana is a problem — but it’s obviously one that smart state governments get around, since Kentucky and Colorado are growing industrial hemp to sell, not just for research purposes. The Drug Enforcement Agency doesn’t distinguish between high-THC marijuana and low-THC hemp. New Mexico can, and should, make the distinction. Unlike tax breaks, allowing cultivation of this crop would not cost a cent. It brings the prospect of new dollars to the table — a new industry, with all the spinoff products leading to additional businesses and jobs. Approving the cultivation of hemp, even in a limited way, is just good business.

Only by growing the economy can New Mexico position itself for better days ahead. Approve a budget with enough new revenue to avoid crippling budget cuts. Encourage economic development that is working, and don’t be afraid to forge ahead into industrial hemp cultivation. In an earlier New Mexican article, Colorado hemp farmer Mike Sullivan put it best: “There’s literally thousands of different things that can be made out of hemp, and the industry is pretty much brand new. It’s an entrepreneur’s dream. You can find a niche just about anywhere.”

But he cautioned: “You definitely don’t want to be last on the train.”