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Hard legislative session ahead for Richardson
Loss of Cabinet seat plays out in New Mexico
Associated Press Writer
Richardson
Denish's plans and preparations to take over New Mexico's top job came to a screeching halt Sunday with Gov. Bill Richardson's surprise announcement that he won't be leaving after all.
The Democratic governor, citing an ongoing federal investigation into how some of his political donors won a lucrative state contract, withdrew as President-elect Barack Obama's nominee for secretary of commerce.
Richardson said he will remain governor for now. He indicated he wants to join the Obama administration later, and Obama said he looked forward to Richardson's "future service."
"The governor believes this is temporary, and ... he's confident that he will be cleared in the near future of any wrongdoing," said Richardson's spokesman, Gilbert Gallegos.
A federal grand jury is looking into how CDR Financial Products, which contributed at least $110,000 to three political committees formed by Richardson, got a state government contract for which it was paid more than $1.4 million.
Gallegos said Sunday the deal "was handled appropriately and it was thoroughly scrutinized and it went through a rigorous procurement process."
CDR said in a statement Sunday there was no "pay-for-play" and that it won the contract based on merit.
The decision to withdraw means Richardson would be here for the duration of what could be a difficult legislative session, as lawmakers grapple with major budget problems.
Otherwise, there could have been a switch of governors at some point in the 60-day session, which begins Jan. 20.
"In a way, I think it might be a blessing in disguise," said House Speaker Ben Lujan, D-Santa Fe, a Richardson ally.
While Denish is "very capable," the second-term governor likely would have a better handle on where programs could be cut or spending reduced as the Legislature plugs holes in this year's budget and makes tough decisions for next year, the speaker said.
Denish got the news in a phone call from Richardson on Sunday morning, according to her spokeswoman, Danielle Montoya.
The lieutenant governor was in Washington, D.C., where she planned to meet Monday with New Mexico's congressional delegation and attend their swearing-in ceremonies Tuesday, Montoya said.
Richardson was in Santa Fe over the weekend, according to a spokesman. He called some legislative leaders Sunday about his decision.
A short statement issued by Denish's office said she and Richardson would continue to work together on budget, economic and other issues.
Denish, a Democrat already running for governor in 2010, would have had a jump-start on the office with Richardson's departure.
She was acting governor while he spent much of 2007 on the road, running for president, and has already collected more than $1.3 million for her 2010 gubernatorial bid.
A slumping economy and lower-than-expected energy prices have caused a $454 million shortfall in the current year's budget. Closing that gap will be the first order of business for lawmakers. Then they have to write a budget for next year, when the economic outlook remains bleak.
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