Contents

Foreword. 6

Purpose of Report 6

Convener 6

Research Committee. 6

Where Do We Get Our Information?. 7

Introduction. 8

CHAPTER 1

Economic Security for Families. 9

Chapter Advisors 9

Poverty in New Mexico. 9

Poverty Report Card 10

Measuring and Understanding Poverty Levels 10

Supplemental Poverty Measure. 10

Self-Sufficiency Standard 10

Role of Government Programs 11

Temporary Assistance to Needy Families (TANF) 11

Supplemental Nutrition Assistance Program (SNAP) 11

Child Care Assistance Program.. 12

Medicaid. 12

Cliff Effect 12

Local Support Networks and Training. 13

Circles Model 13

Family Independence Initiative. 13

Financial Literacy. 14

Role of Nonprofit Sector in New Mexico Economy. 14

Options and Intersections 15

CHAPTER 2

A Changing Workforce. 16

Chapter Advisors 16

Unemployment and Poverty. 16

Changing Workforce, Changing Needs 17

Millennials 18

Improving the State’s Educational Attainment 19

Arrowhead Park Programs 19

The Future of STEM Jobs 20

Innovations in Higher Education. 20

Workforce Information Sharing. 21

Improving Education Awareness and Access 21

Innovations to Help Low-Wage Workers 22

Workforce Innovation and Opportunity Act, State Plan 22

Options and Intersections 23

CHAPTER 3

Small Business Climate. 24

Chapter Advisors 24

Where We Stand: Business Climate. 24

Good Work Underway. 24

Duplication. 25

Challenges 26

Scarcity Mindset 26

Access to Capital 27

Options and Intersections 28

CHAPTER 4

Diversifying Our Economy. 29

Chapter Advisors 29

Growing the Economic Base. 30

Recruiting Retirees and Freelancers 31

Regional Differences 31

Goals and Challenges 31

Population. 32

New Mexico’s Tax System.. 33

Gross Receipts Tax. 33

Menagerie of Tax Incentives 34

Strategies for Diversification. 34

Technology Commercialization. 34

Show and Tell 35

Industries Worth Pursuing. 35

Natural Resources: Water, Energy, Forests 35

High Tech. 36

Tourism.. 36

Spaceport 36

Back Office and Technical Support 36

Retaining Existing Businesses 37

Options and Intersections 37

CHAPTER 5

Rural and Tribal Development 38

Chapter Advisors 38

Rural New Mexico. 38

What is Rural?. 39

New Mexico by Population. 39

Economic Drivers 39

State Land Trust 39

Agriculture. 40

Water 40

Value-Added Agriculture. 40

Local Purchasing Potential 41

Differences Between Farm and Ranch Economies 41

Agricultural Resiliency Project 41

Energy and Mining. 42

Conventional Energy. 42

Renewable Energy. 42

Transmission. 43

Infrastructure. 43

Broadband. 43

Physical Infrastructure. 44

Tribal Development 44

Financial Literacy. 45

Housing. 46

Capital, Banking and Incentives 46

Inter-Tribal Cooperation. 47

Economic Data. 47

Options and Intersections 47

CHAPTER 6

Government & the NM Economy. 48

Chapter Advisors 48

The Federal Government’s Role in New Mexico’s Economy. 48

Government’s Historic Military Role. 48

Government’s Role Today. 48

Diversifying Government Contractors 49

Changing Role of Federal Healthcare Dollars 50

New Mexico’s Medicaid Funding Shortfall 51

Public-Private Partnerships (P3s) as a Funding Option. 51

Key Components of the P3 Model Law. 52

P3 Case Studies 53

Options and Intersections 54

Appendices. 55

Appendix A: Economic Drivers by Region. 55

Appendix B: New Mexico Counties, By Population and Rural-Urban Continuum (RUC) Code. 59

Appendix C: Projected Changes to the New Mexico Workforce by Industry. 60

Bibliography. 61

Project Sponsors 66

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