Announcement disrupts plans for Denish transition
1/4/2009
Lt. Gov. Diane Denish's preparations to take over as governor for the final two years of his term went on hold, as did plans of contenders to succeed Denish as lieutenant governor.
State employees hoping to land new jobs in a Denish administration paused, and Richardson appointees looking to move to Washington, D.C., were forced to reconsider.
About the only thing that remained the same by day's end is that the state still faces a projected $454 million budget shortfall when the Legislature meets here Jan. 20.
"During all the discussions we've been having about how to fix the budget problems, we were focused on Diane being governor, and so now we're going to have switch things up," said House Minority Leader Tom Taylor, R-Farmington. "That obviously changes the ball game."
Richardson said Sunday that he was withdrawing "with great sorrow" amid an ongoing investigation he hoped would have finished by now.
A federal grand jury in Albuquerque reportedly is looking into a possible "pay-to-play" connection between a Beverly Hills financial company's large contributions to Richardson political action committees and nearly $1.5 million the company received for work on a state construction program dubbed the Governor Richardson Investment Partnership.
CDR Financial Products and its chief executive officer, David Rubin, gave at least $110,000 to three political action committees formed by Richardson. Rubin also has contributed $10,000 to Denish, according to the campaign contribution tracking site, www.followthemoney.org. No one involved in the case is suggesting any wrongdoing on Denish's part, and she said in a recent interview that she had not been contacted by the FBI or the grand jury in connection with the case. Her office didn't return phone calls about the contributions from Rubin.
Richardson in a statement denied any wrongdoing on his part.
Spokesman Gilbert Gallegos said the decision to withdraw was the governor's and not Obama's.
"The governor is confident that his name will be cleared," Gallegos said. "He hoped it would have been cleared before the confirmation process, and because it has not, he felt it was in everybody's best interest to withdraw."
Denish, who has announced plans to run for governor in 2010, said in a statement Sunday that she'll work with Richardson "as we have over the last six years, to tackle challenges at home, to craft a workable budget with the legislature and to strengthen our economy to make sure that every New Mexico family has the opportunity to succeed."
However, Richardson's change of course will disrupt some things around the Capitol, political observers say.
One of the biggest interruptions might be for Denish's transition team.
Denish last month named Chris Cervini — who served as Denish's chief of staff from 2003 through 2006 — as the transition's communications director. Cervini quit a job at Lovelace Health System, where he was in marketing and public relations, in order to take the transition job and presumably to work for Denish when she became governor.
Cervini couldn't be reached for comment Sunday. A call to Denish's office seeking comment on what will happen with the transition team wasn't returned.
Other fallout could come in Richardson's relationship with the state Senate — which many have long described as rocky.
"As far as the political atmosphere, I think the Senate is still trying to do what is fiscally responsible to hold the line in terms of spending," said Sen. John Arthur Smith, a Deming Democrat.
With battles over spending priorities a possible source of tension between the executive and the Legislature — and the state's budget crisis expected to get even worse in the 2010 fiscal year — Richardson's decision to stay in New Mexico might make Richardson uncomfortable, Smith said.
"I'm sure he's going to have to be make some decisions he'd rather someone else be making on fiscal policy," Smith said.
To keep lawmakers abreast of his plans, Richardson on Sunday called several leaders to let them know about his decision.
The news came as a shock to many who had assumed Denish would become governor as soon as next month.
"It certainly changes what everybody thought was going to happen," Senate Minority Leader Stuart Ingle, R-Portales, said.
But Ingle noted state government still has the same problems to fix. "I don't know what it changes, if anything," he said. "Money problems are still there. We've still got problems with spending more than we take in."
While many had written Richardson off as providing little more in the upcoming legislative session than giving the State of the State address and then giving advice from Washington, spokesman Gallegos said the governor will be doing much more.
"We're still on track," Gallegos said, "working on State of the State, the budget, capital outlay."
Political observers said Richardson will face the Legislature with his image somewhat tarnished.
"Regardless of what the allegations are regarding the campaign contributions and whether there is evidence of guilt or not, the fact he's got to step down from a position — a national position — and in such a momentous period of history, that's got to be first of all a tremendous disappointment for him as well as his supporters, and I think also for the state of New Mexico," said University of New Mexico political science professor Christine Sierra.
Political blogger Joe Monahan on Sunday predicted that Richardson's decision to remain as governor means the upcoming session of the Legislature will be "a real Donnybrook."
"Richardson will feel forced to exert his gubernatorial powers more than ever to prove he's still relevant," Monahan said in an interview. "The giant will need to flex his muscles, which will set up conflicts in the Legislature."
Reporter Steve Terrell contributed to this report.
Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog at www.greenchilechatter.com.