You have to wonder why the new Governor would want to seduce Nike to come to New Mexico. She has to know that it will require huge tax breaks and other subsidies because a precedent has been set with the Film Industry, Facebook, and the great Clean Energy Transition Act of 2019. The state will be losing money with all three of those recent incentive programs. What the state really needs in an industry that wants to come to New Mexico and not require an incentive. In fact, the reverse should be offered.
“Gov. Lujan Grisham spokesman Tripp Stelnicki said Tuesday (7/2) the Democratic governor contacted Nike because she wants the jobs in New Mexico that would go to a planned $185 million factory in Goodyear, Arizona. Stelnicki says New Mexico in recent months has attracted employers like Netflix and NBC Universal. He says Nike would find a friendly business climate in the state.” as reported in the in Las Cruces Sun News.
While all these companies do offer good jobs, unfortunately, the taxpayers of New Mexico are the ones paying the wages for those jobs through obscene subsidies and tax credits. I do believe it takes money to make money, but how much is too much? Soon the Governor will be giving away the farm, the dairy farms that is.
There is an alternative to the great tax credit giveaway. There is actually a company that would like to expand an industry in New Mexico without demanding a tax break. In fact, the company has placed an incentive offer on the table to pay the state and local counties for the privilege of doing business in New Mexico with their billion dollar storage facility – HI-STORE CISF. This facility would take up a mere 300 acres on an isolated thousand acre parcel in Lee County, THE industrial county of New Mexico.
Unfortunately the Governor has a hostel attitude toward a new long term steady revenue stream. She gets confused about the receiving part of giving. She only has a few years left and decided to spend her way out of office on the backs of the New Mexican residents.