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Episode 1028 | The Line: City Finances & the Use of Bonds - YouTube
Channel: New Mexico In Focus, a Production of NMPBS
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>> I AM GENE GRANT HERE AT THE
TABLE WITH THIS WEEKS LINE
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OPINION PANELISTS.
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REPORTER DAN MCKAY OF
ALBUQUERQUE JOURNAL RECENTLY
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EXAMINED THE CITY'S USE OF
REVENUE BONDS AS OPPOSED TO
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GENERAL OBLIGATION BONDS.
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THOSE GENERAL OBLIGATION BONDS
WHICH ARE PAID BACK WITH
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PROPERTY TAXES REQUIRE VOTER
APPROVAL AND HAVE A SHORTER
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BORROWING PERIOD AND LENGTHY
PLANNING PROCESS.
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ON THE OTHER HAND REVENUE
BONDS ARE REPAID WITH GROSS
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RECEIPTS TAXES AND DON'T
REQUIRE ANY APPROVAL.
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A LITTLE COMPLICATED, SOPHIE,
BUT PARSE THIS OUT.
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WHAT IS INTERESTING HERE IS
ALL IT TAKES IS FOR THE MAYOR
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TO GET SEVEN OUT OF NINE CITY
COUNCILORS TO AGREE AND YOU
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GOT MONEY FLOWING FOR PROJECTS
WITHOUT INPUT REALLY FROM THE
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PUBLIC.
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UNLESS YOU WANT TO FEEL LIKE
YOU'RE BEING REPRESENTED BY
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YOUR CITY COUNCILOR.
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NOW, WE HAVE PROJECTS GOING, A
BASEBALL STADIUM ON THE
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WESTSIDE, PICKLEBALL GOING,
ALL THESE OTHER THINGS GOING.
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IS THIS A GOOD USE OF TAXPAYER
MONEY?
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IS THIS THE RIGHT WAY TO
DISTRIBUTE CASH IN OUR SYSTEM?
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>> THIS IS A COMPLICATED
MULTI-PART COMPOUND QUESTION.
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YOU KNOW, I THINK THAT WHAT
DAN'S ARTICLE HAS REALLY
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ILLUMINATED FOR THE PUBLIC IS
THAT FUNDING FOR CITY PROJECTS
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IS MORE COMPLICATED THAN WE
THINK IT IS, AND, SO, YOU
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KNOW, I AM A LITTLE BIT TORN,
THERE IS A PART OF ME, YES,
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THERE ARE PROJECTS THAT DO
REQUIRE THAT YOU MOVE SWIFTLY,
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MATCH FUNDING AVAILABLE, ET
CETERA, NOT ABLE TO WAIT
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NECESSARILY FOR THE NEXT
ELECTION CYCLE WE WANT TO TAKE
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ADVANTAGE OF THEM.
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IT COULD BE ARGUED A PROJECT
THAT COMES UP THAT FAST IN THE
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ABSENCE OF THE MORE ROBUST
PLANNING, MAYBE IT IS A MATTER
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YOU SHOULD ALLOW TO PASS BUT
IN SOME WAYS THIS DISCUSSION
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IS COLORED BY UNPOPULARITY OF
THE ART PROJECT.
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AND SO IN OTHER CIRCUMSTANCES,
WE MIGHT SAY, THANK GOODNESS
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YOU DID THAT.
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IMAGINE PERHAPS, IF ISOTOPES
STADIUM HAD BEEN BUILT THAT
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WAY, WHICH IS QUITE POPULAR.
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SO, RATHER THAN SAYING, YOU
KNOW, BONDS GOOD OR BONDS BAD,
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I THINK THAT THERE IS THIS
QUESTION OF ARE THERE TYPES OF
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DECISIONS THAT WE WANT CITY
COUNCIL TO BE MAKING AND
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MAKING QUICKLY?
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OR DO WE PREFER A MORE
MEASURED SLOWER APPROACH?
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>> GO BONDS THERE IS ALWAYS --
YOU GO TO CITY COUNCIL
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MEETINGS GOING BACK 15 OR 20
YEARS, THIS IS A RECURRING
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SUBJECT.
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HOW DO WE PAY FOR THINGS THAT
SOPHIE MENTIONED, QUICKLY,
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WITH EFFICIENCY AND ALL THAT
KIND OF THING.
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BUT THERE IS ANOTHER SIDE,
THESE THINGS HAVE TO BE PAID
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FOR.
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SEVEN-AND-A-HALF MILLION EACH
YEAR FOR BOND REPAYMENTS.
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THAT IS KIND OF A CHUNK OUT OF
OPERATING CAPITAL.
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>> IS THIS A GOOD TRADE OF
MONEY?
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>> IT DOESN'T SEEM LIKE IT,
ESPECIALLY WHAT WE ARE READING
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IN TODAY'S PAPER, WE HAVE SUCH
A HUGE SHORTFALL HERE IN
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ALBUQUERQUE, WHERE WE REALLY
RELY UPON GROSS RECEIPTS TAX
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BUT GROSS RECEIPTS TAX ARE
GOING TO PAY THE REVENUE
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BONDS.
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I THINK THAT IS JUST A TIMING
OF THE TWO ARTICLES AND IT
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COULD BE SERENDIPITOUS, BUT,
YOU KNOW.
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>> 24 MILLION IS NOTHING TO
SNEEZE AT.
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>> EXACTLY.
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IT DOES HAVE US TALKING.
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THAT IS CONCERNING TO ME AND I
THINK I DO PREFER THE MORE
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MEASURED GENERAL OBLIGATION
BOND ASSESSMENT APPROACH
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BECAUSE, THEN, YOU'RE REALLY
ASKING THE PUBLIC WHICH, YOU
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KNOW, WHAT DO YOU THINK?
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THIS IS YOUR MONEY WE ARE
GOING TO BE SPENDING.
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SO --
>> EXACTLY RIGHT.
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CHRISTINE.
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>> I THINK THE JOURNAL AND THE
ALBUQUERQUE JOURNAL REPORTER
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DID US A GREAT SERVICE IN
BRINGING WHAT CAN BE THE
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DULLEST AND THE MOST BORING
AND DIFFICULT TOPIC TO
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UNDERSTAND.
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IT KIND OF REMINDS ME WHEN
TEACHING FRESHMEN ABOUT THE
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IMPORTANCE OF GERRYMANDERING
AND REDISTRICTING, THEIR EYES
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KIND OF GLAZE OVER, NO,
REALLY, THIS REALLY IS AN
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IMPORTANT THING OF WHO GETS
WHAT, WHEN, WHERE AND HOW.
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SAME THING WITH CITY
FINANCING, SO THESE HAVE
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CONSEQUENCES.
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SO, I WOULD JUST RAISE ALSO I
AM NOT SURE, I AM NOT AN
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ECONOMIST, OF HOW TO ANSWER
THE LONG-TERM IMPLICATIONS OF
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USING REVENUE STREAMS THAT ARE
BASED ON PROPERTY TAX VERSUS
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ESSENTIALLY SALES TAX.
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BUT, TO ME, THE FACT THAT
GROSS RECEIPTS TAXES ARE
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REGRESSIVE, IN THAT THEY HAVE
A DISPROPORTIONATE HIT ON THE
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WORKING CLASS AND POORER
PEOPLE AS OPPOSED TO THE
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WEALTHY AND MORE AFFLUENT, SO
IT SEEMS TO ME THERE IS AN
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INEQUITY THAT IS STRUCTURALLY
BUILT IN THAT DECISION MAKING
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PROCESS.
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>> TOM, HAS THIS
ADMINISTRATION AND THE
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COUNCILORS WHO HAVE GONE ALONG
WITH THIS, HAVE THEY BEEN JUST
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A BIT FRISKY, MEANING THIS 24
MILLION DEBT WE ARE STARING AT
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NOW FOR THE CITY COFFERS,
WHETHER IT WAS A SURPRISE TO
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THEM OR NOT?
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HAVE WE BACK DOORED OUR WAY
INTO SOMETHING TOO AGGRESSIVE
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HERE, PAYING BACK
SEVEN-AND-A-HALF MILLION,
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WHICH BY THE WAY WE PAY LATE
INTO THE 2020'S, LIKE LONG
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DOWN THE ROAD.
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>> YOU KNOW, I DON'T SEE THE
GO BOND REVENUE BONDS ISSUE
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CORRELATING WITH A SHORTFALL
THAT THE CITY FINDS ITSELF OR
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SAYS IT IS IN RIGHT NOW, WHICH
I BELIEVE IT REALLY IS.
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BY THE WAY, FORMER MAYOR
SAAVEDRA IS SAYING, YES,
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FINALLY SOMETHING IN MY
BAILIWICK.
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WHEN YOU LOOK AT IT, YOU KNOW,
THE REVENUE BONDS, GO BONDS,
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IT UNDERSCORES THAT PLANNING
AND VISION ARE IMPORTANT, ALSO
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SUPPORTS THAT THE PERSON WHO
WINS THE MAYOR'S OFFICE HAS
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THE CHANCE TO THE WINNER GOES
THE SPOILS.
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THE THING THAT CONCERNS ME,
THOUGH, IS THAT THE REVENUE
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BONDS, AS YOU STATED, IS THAT
THOSE ARE BASED ON GROSS
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RECEIPTS AND WITH THE CITY
STILL IN A RECESSION, THAT IS
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GOING TO IMPACT THE CITY'S
ABILITY TO, YOU KNOW, FURTHER
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LEVERAGE THOSE REVENUE BONDS
IN THE FUTURE AND SO THAT IS A
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BIT CONCERNING, BUT, OVERALL,
I AM FINE WITH THE WHOLE
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PROSPECT, THAT, YOU KNOW, THIS
IS PART OF THE PLANNING
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PROCESS, THESE ARE PROJECTS
THAT KEEP --
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>> ARE YOU COMFORTABLE WHERE
THE PROJECTS AND MONEY HAS
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GONE THUS FAR?
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SEEM RESPONSIBLE TO YOU?
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>> IT DOES.
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I HAVEN'T REALLY STUDIED IT
THAT MUCH BUT I WOULD IMAGINE
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THERE ARE SOME AREAS THAT
PEOPLE DON'T FEEL LIKE, OH, MY
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AREA HASN'T RECEIVED THAT MUCH
AND STUFF.
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I THINK TO YOUR QUESTION THAT
YOU STARTED OUT ON, AS FAR AS
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REVENUE SITUATION THE CITY
FINDS ITSELF IN, I THINK IT IS
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MUCH BIGGER.
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IT IS ABOUT ECONOMIC
DEVELOPMENT, YOU KNOW, THE
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MAYOR'S PLAY HAS REALLY BEEN
ON LET'S GO FOR TECHNOLOGY AND
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FOR THAT LONG-TERM PLAY.
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IN THE MEANTIME, THE SHORT
TERM PLAY HAS BEEN NOT AS MUCH
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OF A PRIORITY AND TO PASS IT
OFF AS BEING THE PROBLEM OF
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PENGUINS AND OTTERS AND THE
NEW EXHIBITS AT THE ZOO
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DOESN'T PASS THE OPTICS TEST.
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>> GOOD POINT.
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THAT IS ALL THE TIME WE HAVE.
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THANKS GUYS, GREAT STUFF,
GREAT FRIDAY NIGHT.
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>>I'M GENE GRANT.
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THANK YOU FOR
JOINING US HERE ON NEW MEXICO
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IN FOCUS.
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WE APPRECIATE YOUR
TIME AND EFFORT TO STAY INFORMED
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AND ENGAGED.
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WE'LL SEE YOU NEXT
WEEK, IN FOCUS.
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>> FUNDING FOR NEW MEXICO
INFOCUS PROVIDED BY THE MCCUNE
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CHARITABLE FOUNDATION AND THE
NELITTA E. WALKER FUND FOR
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KNME-TV, THE KNME-TV ENDOWMENT
FUND AND VIEWERS LIKE YOU.
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