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It's Time For New Mexico To Focus On Real Economic Development

Commentary: I was said to hear that Stan Fulton had passed away. Fulton, the video slot machine mogul and Sunland Park Race Track owner, was the largest single donor to NMSU. I’ve been the beneficiary of research and travel grants funded by Fulton, which I’m thankful.

I only met Stan Fulton once, but it was among the most memorable interactions that I’ve had over the years. At the time, I was a paid consultant to Sunland Park Race Track in their efforts to thwart the Anthony Casino.

For those of you who don’t remember, the Jemez Pueblo sought to build an off reservation—and this would have been way off, like, 300 miles off—casino in Anthony, NM just this side of the Texas border. I was hired as a consultant by Sunland Park to do an economic analysis of the Casino.

Tempers got heated. The Dona Ana County Commission originally voted to oppose the Jemez, then held a second vote to support them. It was the second vote that I met Stan Fulton. He and his consulting team, including me, attending the Commission session in a vain attempt to prevent the reversal, to no avail.

Mr. Fulton, to say the least, was not happy. Afterwards, at someone’s suggestion, we retreated to Chilito’s for lunch, and to lick our wounds. I remember the meal being quite good and at my suggestion, Mr. Fulton had a green chíle burger. Afterwards, I thought, only in New Mexico, when given a chance to have lunch on the tab of a reported billionaire would the first thought be Chilito’s.  

The Anthony Casino is an example seems like a good idea when you first think about it, but on reflection is not. The Casino, since it would be owned by the Jemez, would have been untaxed, so would have reduced the local tax base by divert entertainment dollars tax paying businesses.

But, said casino supporters, look at all Las Vegas; see how much that said has benefited. To which I reply, yeah, right. Midwesterners are going to travel to Anthony, NM for their winter getaways.

Casinos are not the only bad idea that is touted as good for economic development. Take the New Mexico Film Credit. The film credit rebates up to 30% of the expense of filming in New Mexico. It is a subsidy paid to rich Hollywood types at the cost of low-income New Mexico taxpayers.

People say, we can’t compete for films with places like Georgia without the subsidy. To which I respond, if Georgia jumped off a cliff would you also. Le the Georgians waste taxpayer money; that doesn’t mean we have to also.

Real economic development is not about quick fixes and gimmicky government programs. Rather it involves investment into long term projects that can help our citizens be more productive. Pre-K-12 education, infrastructure, reasonable government regulation—these create real, lasting economic development. But they require patience and perseverance to succeed.

Christopher A. Erickson, Ph.D., is a professor of economics at NMSU. He has taught economic development theory for many years. The opinions expressed may not be shared by the regents and administration of NMSU. Chris can be reached at chrerick@nmsu.edu