By Monica Ortiz Uribe, KJZZ News, for Fronteras
LAS CRUCES – The clock is ticking on automatic federal budget cuts, known as the sequester, which will go into effect at the end of this week. In the southwest, one of the states that could be hardest hit is New Mexico. The upcoming deadline has government agencies, local businesses and military bases on edge.
At RTD Hardware just outside Las Cruces in southern New Mexico, each aisle is adorned with a bright yellow state flag. The shop is neatly supplied with all the tools you’ll need to solve a plumbing calamity or makeover a backyard. What you won’t find are the tools to fix the federal budget crisis.
RICHARD TRUJILLO: “Oh it’s reflected in the business absolutely- along with our walk-in customers and government sales…everybody is tightening their belt.”
Richard Trujillo is the store owner. It’s a family run shop, named after his three daughters. Roughly a quarter of his business depends on contracts with the federal government and his regular customers are federal employees. New Mexico is home to two national research labs funded by the Department of Energy and four military bases.
One of those military bases is White Sands Missile Range. It’s here that the army does missile and weapons tests like this one.The missile range employees some 9,000 people. More than 80 percent of salaries go to civilian workers- contractors, engineers, scientists. Monte Marlin is the public affairs officer for the base.
MONTE MARLIN: “Our regional impact is about $2.3 million dollars a day to the regional economy.”
The base is under a hiring freeze. It’s stopped unnecessary travel and training and may not renew all contracts with outside businesses. There’s also a chance of furloughs for civilian employees up to 22 days- about a month’s worth of pay. Multiply these troubles statewide and the picture looks bleak. Chris Erickson is an economist at New Mexico State University.
CHRIS ERICKSON: “New Mexico has about twice the number of federal employees of the national average. We have about 4 percent of statewide employees…compared to about 2 percent nationally.”
Erickson and others estimate New Mexico could lose upwards of 28,000 jobs within two years of the sequester. That includes both direct and indirect losses. A census study in 2010 showed federal dollars make up one third of the state’s GDP– among the highest in the country. Jon Barela is the Economic Development Secretary in New Mexico.
JON BARELA: “It is very very important that we begin to diversify New Mexico’s economy to create a more robust private sector that’s not as dependent upon these federal jobs.”
Currently a package of bills is making its way through the state legislature, aimed at making New Mexico more attractive to private businesses. The state has had negative job growth in the past two years but there has been one bright spot, cross border trade. It too could suffer from the sequester. Homeland Security Director Janet Napolitano testified before Congress earlier this month, saying the sequester could reduce staff at the ports of entry.
JANET NAPOLITANO: “On the southwest border our biggest land ports could face waits of five hours or more functionally closing these ports during core hours.”
Meanwhile businesses like RTD Hardware in Las Cruces are holding their breath. Company vice president Theresa Gonzalez says they are holding off on ordering non-essential inventory and focusing on improving customer service.
THERESA GONZALEZ: “So everybody is just waiting and waiting for more money… and so this is just adding to the stress, I think the sequestration.”
Congress has until Friday to act before the automatic cuts go into effect.
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