Press Room & Media

AFLEP in New Mexico

House Commerce and Economic Development Committee at 1:30 on Wednesday, February 5, 2025.

House Commerce and Economic Development Committee at 1:30 on Wednesday, February 5, 2025.

The bill for Public Banking HB 130 is scheduled for the House Commerce and Economic Development Committee at 1:30 on Wednesday, February 5, 2025.

Click here to see the schedule. Scroll down to the bottom of the page to see the members of this Committee.

Now is the time for our collective voices to be heard. Please contact your legislators, especially your Representative, and request their support for HB 130–Public Banking Bill and that it be heard in committees and acted upon by the full House.

Click here to if you want the name and contact information of your Representative.

 

Here are some talking points you may utilize to highlight the potential benefits of establishing a state public bank for New Mexico. A state-owned public bank would provide several advantages, including:

1. There are gaps in capital funding available to small business start up’s and expansions.  Especially for businesses of 1-50 employees and especially in rural areas, including tribal lands and pueblos.  Current funding for small business development is not meeting all needs and federal dollars especially could be reduced or become inconsistently distributed.  Among the groups reporting challenges in capital access are Outdoor Recreation, Creative and Healthcare Industries, farmers and ranchers, tribal and pueblo members.


2.
 A tool to address these needs is a state public bank, owned by the state and managed independently, working in partnership with community banks, credit unions and CDFI’s to provide equitable access to capital funds.

3. A $50 million fund generates $50 million in loans.  A bank creates money through credit.  A $50 million one-time investment (for capitalizing the bank) will make possible 8-10X that amount in loans, up to $500 million.  This is how we invest in New Mexicans.

4. The public bank would create partner loans with community banks and not compete with them,
 contrary to the message community banks are spreading again.  We need these loans since they are only lending 55-57% of their potential based on your deposits.  They are investing instead in the shadow markets to ensure maximum profits for shareholders, rather than developing community wealth through stronger local economic development.

  • Rick Clyburgh, North Dakota Banking Association President and CEOKSFR, Santa Fe Public Radio, The Forum, December 9, 2024, The Need and Feasibility of a State Public Bank.  “The state public bank supports more local control of financing.  It is built on trust of local institutions.  The BND does a lot of participation loans with community banks, averaging 50%.  ND has experienced no bank failures in 35 years.  The BND has helped to keep them liquid.  It’s (the BND) a wonderful tool, is not a competitor.  It is a partner with local banks in the communities.

5. Why are we so eager to place our state’s deposits in Wall Street banks?  Instead, let’s invest in New Mexico–and keep the money circulating within our state.

 

2025 Legislative Preview Zoomfest – Top of the List

2025 Legislative Preview Zoomfest – Top of the List

On Tuesday, January 14, 2025 at 6:00 p.m., Reboot Our Democracy launched its 2025 Legislative Preview Zoomfest. And we are proud to say we are at the top of the list. Angela Merkert, our Executive Director, went into detail on the many benefits for a state public bank.

Community wealth building requires capital. New Mexico’s investments have focused largely on recruiting mid- and large-size businesses to the state. A state public bank would invest NM tax and fee revenue in small business development, especially in rural and other underserved areas, which include farming and ranching.

The Alliance for Local Economic Prosperity (AFLEP) advocates to keep NM revenue safe, local and working for all New Mexicans.

Click here to watch the Zoom meeting. Passcode: p1*tPQ?y

Public Banking on Public Radio

Public Banking on Public Radio

Monday, December 9, the work of AFLEP was the focus on Santa Fe’s public radio station 101.1 FM KSFR on The Forum with Jim Falk. Being interviewed were the following people. 

Peter Smith, AFLEP Board President
Harold Dixon, Advisory Board member
Rick Clayburgh (CEO of North Dakota Bankers Assn)

Jerry Jones, Anchorum CEO
Angela Merkert, Executive Director

At this link, a state public bank is explained as well as clarification on the initiative before us to make this institution a reality in New Mexico.

Photo credit: Microphone by Israel Palacio on Unsplash

How is Public Banking like Acequia Culture?

How is Public Banking like Acequia Culture?

 
At the Alliance, we are always expanding our understanding of both the challenges and wisdom inherent in the land and rich cultures of New Mexico. One powerful example of a democratic practice that benefits all New Mexicans is our acequia system. The acequia culture that is present in New Mexico today roots back into ancient traditions and is considered by many to be the oldest democratic practice in North America. For hundreds of years, New Mexicans have worked together to allocate, distribute, and manage the flow of water across our state. There are currently more than 800 ditches in operation and every one of them depends on cooperation for the good of all. The NM Acequia Association’s mission includes the protection of water, growing healthy food for families and communities, and honoring the cultural heritage of those communities. Acequias are living proof that communal ownership and democratic access to precious resources are both sustainable and resilient.

Can we do this with the precious resource of money?

The Alliance knows that we New Mexicans, with our long history of acequia cultures, CAN build a state public bank that emulates the strength and clarity of this ancient life-sustaining democratic practice.

Centering relationships and responsibilities, built on cooperation, and focused on the well-being of all, a NM state public bank will invest New Mexico revenues in New Mexicans, strengthening our communities from the inside out. As with the acequias, regional needs and aspirations are identified by locals and incorporated into planning the flow of resources. For the bank, this means lending programs are recommended to the state bank board, made up of both financial lending and community development expertise. Their goal would be to make investments in New Mexicans that are not currently being made. Without those investments, we experience withering rural communities, sales of land to corporate landowners, loss of cultural traditions, and limitations on the capacity to adapt agriculture practices in response to climate disruption.

Like the life-giving flow of water through the acequias, The Flow of Money through a NM Public Bank bank could look like this:

This flow nourishes stronger, healthier communities that are supported in their shared values and customs in which people can choose to remain, work and flourish in their communities.

 
YOU can help make this FLOW a reality! Your support of the Alliance will keep the pressure on to ensure that public bank funding is included in October’s draft budget through:

  • Advocacy with legislators and scheduling of interim committee hearings.
  • Enhanced detailing of legislation with executive branch departments.
  • Increased outreach through allied organizations and community groups.

Our impact will keep New Mexico money flowing throughout our communities in support of shared community values, traditions, and visions that increase prosperity for all!

 

A New Mexico public bank is no gamble

A New Mexico public bank is no gamble

MY VIEW – ANGELA MERKERT

Santa Fe New Mexican | January 5, 2024
 

A recent Ringside Seat column by Milan Simonich (“Another $3.4 billion makes legislators dangerous,” Jan. 2) raised questions regarding legislator support for creating a state public bank in the upcoming session. There will in fact be legislation introduced, with revisions from past proposals. It is a viable answer to the lack of equitable access to capital, especially for small business start ups and expansions, as well as agricultural and food system needs.

Yes, the Bank of North Dakota, a huge success for the state, is often cited for good reason. In 2022 this bank generated a 19% return on investment on a loan portfolio of $5.4 billion and investments. The bank holds a credit rating of A+/Stable. It’s all done with a focus on investing in North Dakota business, agriculture and people. That kind of outcome can be developed in New Mexico.

The public bank failures noted are not so recent. Several occurred in the 1800s and early 1900s. The weak link in their failures was typically the governance structure — too much cronyism and weak business practices. The proposed Public Bank of New Mexico legislation addresses those issues as has the Bank of North Dakota, which is why it is so healthy.

In the history of the United States there have been four successful federal public banks, all closed due to sunset clauses in legislation demanded by Wall Street banks. Each bank was successful in achieving its purposes.

That track record is why legislation is being proposed in Congress for a national infrastructure bank, a federal public bank.

It is not “gambling public money” to create an additional tool in the state’s finance system to enhance the ability to invest in New Mexicans.

Initially the state public bank would focus on developing partner loans with community banks and credit unions to create more equitable access to capital for small-business entrepreneurs and to enhance lending for agriculture-related needs. More support then would be available to invest in climate-impacted adaptive practices by farmers and ranchers, along with food processing and distribution expansion. Why are we exporting 95% of our food production and importing 94% of what we consume?

Finally, loans made by the bank would be repaid with interest. The anti-donation clause would not apply because no gifts are being made. The state owns the bank and it is managed independently, similar to how the New Mexico Finance Authority is operated. That charge is a boogeyman.

What is so scary about placing at least a portion of the state’s revenue in a state public bank rather than in a Wall Street bank? At a state public bank, lending could be focused on local needs rather than exploiting regulations to enhance executive compensation and stock prices. Let’s invest in New Mexico.

Alliance for Local Economic Prosperity has indeed been advocating for a state public bank for four years. Operating by more democratic processes than the big banks and focusing on innovative ideas that community banks and credit unions cannot, or will not, engage on their own, will expand community wealth. These are not high-risk loans; rather, they don’t fit into those dark boxes that hold the computer-driven formulas driving decision-making. The public bank is in partnership to create those loans and small businesses expand and thrive. New Mexico revenue will remain safe, local and working for New Mexicans.

Angela Merkert lives in Albuquerque and has lived and worked in New Mexico for 18 years. She serves as executive director of Alliance for Local Economic Prosperity.

Shop Small, Save Money During New Mexico’s Small Business Saturday Gross Receipts Tax Holiday

Shop Small, Save Money During New Mexico’s Small Business Saturday Gross Receipts Tax Holiday

Small Business Saturday is November 25, 2023

Santa Fe, N.M. – The New Mexico Departments of Economic Development, Tourism, and Taxation and Revenue encourage New Mexicans and visitors to shop at small businesses first during the holiday season. While shoppers may not find everything on their list in local, small businesses, stopping there first gives business owners, entrepreneurs, artists, growers, and makers an opportunity to grow their business and support the local economy.

To support and encourage shop local efforts throughout New Mexico during the holiday season, the New Mexico Tourism Department (NMTD) recently published its annual New Mexico True Certified holiday gift guide. This year’s gift guide features 130 locally grown and produced products from jewelry, fine art, apparel, home décor, snacks and more.

NMTD also launched its first-ever New Mexico True Certified shop local campaign for the holiday season. The campaign highlights the craft, care and artistry of New Mexico True certified goods.

Additionally, November 25, 2023 is New Mexico’s Small Business Saturday tax holiday where the state suspends collection of gross receipts tax on sales of qualifying items at certain, non-franchise small businesses with 10 employees or less. The annual tax holiday begins at 12:01 a.m. and ends at midnight the same day. A wide variety of merchandise qualifies for tax-free status such as toys, games, electronics, books, sporting goods, and more­­—as long as the price is under $500 per item. Gift cards do not qualify. A complete list of qualifying items can be found on the Tax & Revenue Department’s website.

“Small business Saturday is a great opportunity for all of us to save a little money and support home-grown New Mexico businesses to grow our local economy,” said Taxation and Revenue Secretary Stephanie Schardin Clarke.

“More than fifty percent of New Mexico employees work for small businesses. Shopping at small businesses during the holiday season supports your neighbors, our state’s economy, and local communities,” said Acting Economic Development Department Secretary Jon Clark.

“We really wanted to put a concerted effort into reminding folks this holiday shopping season that they can find high quality and authentic gifts made right here in New Mexico,” said Acting Tourism Secretary Lancing Adams. “When New Mexicans make the decision to shop local, they are uplifting the merchants, artists and creatives that power our small business ecosystem.”

“Throughout the year, but especially during the holiday shopping season, it’s important to keep dollars in the local economy because that money recirculates and strengthens our communities. Additionally, many of New Mexico MainStreet’s affiliated communities host family-friendly events that bring people together to eat, shop, and play in their welcoming and vibrant commercial districts,” said New Mexico Main Street Director Daniel J. Gutierrez.

Shopping locally is important because small businesses create jobs in the community, and they’re also more likely to give to community charities. Money spent locally recirculates and strengthens the local tax base which supports community services. Finally, a vibrant local economy improves the quality of life for the whole community.


 

The New Mexico Economic Development Department’s (EDD) mission is to improve the lives of New Mexico families by increasing economic opportunities and providing a place for businesses to thrive. EDD’s programs contribute directly to this mission by training our workforce, providing infrastructure that supports business growth, and helping every community create a thriving economy.

Learn more at edd.newmexico.gov.

The New Mexico Tourism Department (NMTD) is the statewide agency tasked with promoting New Mexico for leisure travel and driving visitation to the state. The Tourism Department plans, produces, and monitors national marketing and advertising campaigns through the award-winning New Mexico True brand. The Tourism Department also manages grant programs and other services that strive to empower communities with the resources and technical expertise to develop and promote tourism for their own community.

The Tourism Department also manages New Mexico Magazine, a monthly publication dedicated to covering New Mexico’s multicultural heritage, arts, environment, creatives and diverse people. In addition, the Tourism Department operates four visitor information centers located in Santa Fe, Lordsburg, Glenrio and Manuelito.

Learn more at newmexico.org.

The Taxation and Revenue Department serves the State of New Mexico by providing fair and efficient tax and motor vehicle services. It administers more than 35 tax programs and distributes revenue to the State and to local and tribal governments throughout New Mexico. The Department strives to reduce taxpayer burden through clearer communication, statutes, regulations, forms, correspondence and instructions.

Connect with us on tax.newmexico.gov, LinkedIn, YouTube and Twitter @NM_MVD.

New Mexico MainStreet (NMMS) develops local capacity to engage people, rebuild places and grow the entrepreneurial, creative & business environment resulting in economically thriving downtowns, greater business & employment opportunities, and a higher quality of life. NMMS was founded in 1984 and currently serves 30 MainStreet Districts and 12 Arts & Cultural Districts. NMMS is a program of the New Mexico Economic Development Department.

Learn more at nmmainstreet.org.

 

 

AFLEP stands up to the Banking Bull at Legislative Panel

AFLEP stands up to the Banking Bull at Legislative Panel

Photo of ‘Charging Bull’ & ‘Fearless Girl’ sculptures by Anthony Quintano

On October 13, 2023, AFLEP again went before the Interim Economic & Rural Development & Policy Committee. Watch the full video here.

AFLEP Executive Director Angela Merkert faced 4 community bankers, plus 2 CEOs of NM Bank Associations; a formidable six-headed Banking Bull harnessed to the status quo and echoing “there’s not a problem!” By their side was The NM Finance Authority offering research that affirmed our findings and small fixes with a “we’ve got it taken care of” attitude.

Standing with AFLEP was a Northern NM Farmer who shared his story as proof of the enormous challenges rural New Mexicans face when seeking farm or small business loans.

The Bull charged in, brandishing the “riskiness” of a public bank and arguing it would “cripple” our community banks. Two myths easily proven false by North Dakota, where a state public bank has garnered large budget surpluses, high credit availability, and the highest per capita network of community banks in the US!

The truth is the Banking Bull’s “Profits First!” business model and regulatory limits have dug them in to resist change. Strong ties to Wall Street Banks obscure their view “outside the box”, making them unable to grasp how a public bank could complement their services and bridge NM’s documented lending gaps.

Like the fearless girl, we are small but not easily intimidated. We persist in winning over legislators with true stories, generative solutions, and hard facts.

A NM state public bank, created by and for New Mexicans to meet our unique needs, will be a powerful tool to build the thriving communities we all deserve.

We need you to add your voice to our movement. Together we can give New Mexicans control of our state’s revenues and unleash the innovative potential of our people!

New Proposal for a NM State Public Bank

New Proposal for a NM State Public Bank

 
by Angela Merkert, Executive Director, AFLEP

Alliance for Local Economic Prosperity met recently with the Economic & Rural Development & Policy Committee, an interim committee of the state legislature. You can watch the video of the full hearing here. We presented a proposal for a new plan for initiating a Public Bank of New Mexico (PBNM). The plan was developed based on recommendations from legislators in one-on-one conversations and expanded research on the potential for prosperity and wealth development for NM rural and frontier communities. That research notes that federal monies will be coming into the state designated for agriculture and rural small business development, especially for historically marginalized populations. AFLEP’s proposal takes those factors into consideration.

What’s in it?

The proposal met with the most positive responses that we’ve had regarding proposed legislation. What’s in our proposal? The details are being fine-tuned.
The key points include:

  1. an appropriation for an initial capitalization of the bank with $10 million, rather than $50 million;
  2. moving $35 million in deposits from a Wall Street bank into the PBNM, rather than $60 million;
  3. identifying two communities/regions of the state to engage in Community Conversations to identify potential and needs, including economic support;
  4. recruiting a community advisory group that would include stakeholders, including individuals in the roles of Main Street Directors, community banker, small business entrepreneur(s), credit union representative, and community foundation representative; and
  5. development of initial lending programs to address identified economic support gaps proposed by the advisory group that will be forwarded to the PBNM board.

The Community Conversations and planning would take place at the same time that bank implementation (incorporation, chartering, board and executive staff recruitment) is occurring. By the time the bank is ready for operation, initial lending programs will be in place and there will be a designated time to prove the bank’s feasibility and effectiveness.

This isn’t our final plan, but a strong foundation to the plan is developing and receiving positive responses. We’ll keep you informed of our progress. We wanted to share this new approach and our excitement about it with you!  Let’s keep the momentum going and focus on local revenues being invested in local communities for increased prosperity and the health and well-being of each one. Join with us as we advance this proposal!

Rural NM catching up to high-speed internet with federal infrastructure grants

Rural NM catching up to high-speed internet with federal infrastructure grants

By Ryan Boetel for Albuquerque Journal | June 25, 2023

 

Rural NM has some of the worst access to high-speed internet. Here’s what the federal government is doing to address the disconnect.

 

Photo above: Horacio Lizama, left, from Medanales, and Juan Andres Maestas, from Abiquiú, work on one of several computers provided for people at the El Rito Library on Thursday. Eddie Moore / Journal

EL RITO — At the El Rito Library, VHS cassettes of “Saving Private Ryan” and “Gone with the Wind” are for rent. Many locals can’t get high-speed internet access, so streaming isn’t an option.

Several people on Thursday afternoon were using the library for its internet. It’s one of the only public places with reliable service in the region.

Alison Brislin, a librarian, said a big part of her job has become guiding people through basic internet skills, such as using portals or paying bills, which are becoming more and more common parts of life.

“You’re super-disconnected. We need the internet for everything now,” Brislin said. “Before, it was a luxury to have the internet. Now it’s becoming more of a necessity.”

From the Bootheel in the southwest corner of the state to Abiquiú in the north, there are parts of New Mexico with some of the worst access to high-speed internet in the country.

But now, more than a hundred million dollars is pouring into the state from the federal government for large-scale broadband projects already underway. Government officials say the projects will address sharp divides in the state — both between urban and rural residents and across racial lines, in terms of who can access high-speed internet.

Luis Reyes, the CEO of Kit Carson Electric Co-op, which has been tapped for more than $20 million in grants and loans to build a fiber network throughout northern New Mexico, said the projects will be transformative for New Mexico.

“It’s very archaic,” Reyes said of the quality of the internet in parts of the state. “What’s happening is we’re leaving a lot of the kids behind because they don’t have the same tools and opportunities as (students) in the metro areas have.”

Kit Carson Electric, which has been offering internet services in northern New Mexico since 1999, recently received a $23.6 million grant from the U.S. Department of Agriculture to build a fiber cable network to bring high-speed internet to about 2,693 people, 42 businesses, 34 farms and eight educational facilities in Rio Arriba County. He said many of the customers live in the Abiquiú and El Rito areas. The company is also required to put up an additional $5 million as a loan for the project, Reyes said.

The grant was one of six recently announced, worth a total of about $123 million, that will fund a series of broadband infrastructure projects across the most rural areas of the state. The grants were awarded from September 2022 to March 2023, according to USDA documents.

Reyes said he’s hoping that customers in the El Rito and Abiquiú areas could start getting hooked up to the fiber network sometime in the fall.

Money for the projects was earmarked in an infrastructure bill President Joe Biden signed into law in 2021. The law is funding a wide variety of infrastructure projects across the country, including several in New Mexico.

Once completed, Reyes said internet and cellphone service will greatly improve in the Abiquiú and El Rito areas.

“It’s kind of like you’re riding a bike to get to some place and then we’re going to put you in a race car,” he said.

Broadband Now, an industry watchdog group, ranked New Mexico 45th in terms of access to broadband internet in 2023, according to the service’s website. Only West Virginia, Alaska, Mississippi, Arkansas, Vermont and Missouri ranked worse.

There were stark differences between rural communities and urban centers.

Nearly 99% of Los Alamos County and 98% of Bernalillo County residents had access to 100 megabits per-second quality service. Conversely, no one in Catron County has access to that level of service and just 1% of Luna County residents, 1.2% of Socorro County residents, and 7% of people in Hidalgo County have access to high-quality broadband, according to the group’s website.

The disparity is also reflected along racial lines: In New Mexico, 6% of Anglo residents lack internet access, compared with 12% of Hispanics or Latinos, while nearly a quarter of the state’s American Indian population doesn’t have broadband access, according to the website.

Read the full story at abqjournal.com.

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It's Our Money with Ellen Brown

Episode: Everyone deserves a public bank

Join those who’ve endorsed a Public Bank for New Mexico

Paul Gibson endorses Public Banking NM

“I had the good fortune to work on this initiative before Bernie kidnapped all my time. This is one of those no-brainer initiatives that only the 1% could oppose. It has the potential to save the state millions of dollars by vastly reducing the cost of its bonds to improve infrastructure funding. in a public bank, our state funds can be used to build our local economy and our local infrastructure.”
 
– Paul Gibson
Retake Our Democracy

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