© 2017 Michael Swickard, Ph.D. I was wrong recently when I wrote about
not using any of the New Mexico Permanent Fund. It’s a resource for when New
Mexico runs out of money from the extractive industries. New Mexico has saved a
portion from every oil and gas dollar made in a rainy-day fund.
Proponents of raiding the Permanent
Fund are looking for a small percentage to politically increase the number of
people working for New Mexico in Pre-school education and family support. They
say the $15 billion is just waiting for a worthy project.
Let’s take it all right now. New
Mexico is dead last in almost every category. We as a state are on our backs in
a pond with a rock on our chest looking up at the sky with lifeless eyes.
New Mexico cannot compete against
other states because of our problems in education, transportation, job
creation, fighting crime, poverty and other measures. Businesses are moving
from the Snow Belt to the Sun Belt but not to New Mexico.
We have billions of dollars for a
rainy day. If this isn’t a rainy day I don’t know rainy days. The leaders of
New Mexico need to take most of that $15 billion fund and use it wisely.
Don’t use it as a political bonus for
those politicos who won elections such that the winning party members all get
thousands of dollars. That would not change anything in New Mexico except for a
few people who would now have new boats.
The Permanent Fund was created by
extraction of energy in our state. Oil and gas built the fund over the years. As
a nation, our energy industry allows us to have the society we have. Without
abundant and inexpensive energy, our nation and New Mexico would not be doing
well, even as well as last place New Mexico.
There are three problems that need
to be addressed with the $15B or a large percentage of that money. They are:
energy availability at a good price, water availability at a good price. Finally,
New Mexico needs a sustainable economy.
First, let’s consider energy. There
are huge changes in the nuclear power generation industry such that the horror
of Chernobyl or Fukushima nuclear problems are not appropriate to consider. Why?
Because those were first and second generation nuclear systems that failed.
We are considering fifth generation
systems that are very economical and safe. By economical the price of a small modular
unit is about $3B to generate 550 MW of power. New Mexico needs three units so
they can take one offline for maintenance without disrupting the state.
Here is what will change New Mexico.
Nuclear plants run best at 100 percent so there would be lots of extra power
available at times. What to do with it? The first task of excess power is the desalinization
of brackish water which New Mexico has lots of to turn into good water.
New Mexico could have abundant good
water for Agriculture at essentially very little cost. Lots of jobs and
businesses would follow inexpensive power and plenty of good water. What else
to do with the extra power from the three units?
New Mexico could make hydrogen fuel
for the coming generation of clean hydrogen vehicles. The money from electric, water
and hydrogen would go to the budget with some rebuilding the Permanent Fund.
The fund could jump start the
state’s ability to attract good companies who would provide good jobs for New
Mexicans. To have plenty of good water is essential along with plenty of money
for transportation infrastructure. Finally, all the improvements must be
sustainable. That’s the tough part.
Regardless of which political party
holds the reins of power, the structure of improvements must be impervious to
political design. Not sure we can do it, but we can try. Currently, New Mexico
has all that money sitting doing nothing but functioning as a rainy-day fund
and giving some money to the budget.
It is time to make a radical change
in the structure of New Mexico’s future. It will take both political parties
and the citizens voting to make this happen. If not, New Mexico will continue
to be last in everything.
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