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BREAKING: State Auditor Tim Keller identifies millions in uncollected revenue


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Audit reveals the state potentially failed to collect at least $193 million in premium taxes from insurance companies

Staff Reports

SANTA FE – On Sept. 20, State Auditor Tim Keller released a special audit of premium taxes collected by the state of New Mexico. New Mexico’s Office of the Superintendent of Insurance is responsible for accurate and timely collection of premium taxes from insurance providers that do business in the state. A sample of one-quarter of the total premium tax collected from 2010 to 2015 revealed that the state may have been underpaid at least $193 million just for those transactions. The total amount due to the state for all transactions is likely to be more.

“Given New Mexico’s budget shortfalls, it is critical for the state to competently collect the taxes it’s owed,” Keller stated. “Unfortunately, this is another driver of our state’s budget woes. As time goes on, our state stands to lose out on even more money, adding to the millions that should be collected from insurance companies. We are overdue for the administration to seal these cracks that allowed millions of dollars in much needed revenue to slip through.”

The audit, conducted in conjunction with OSI at the request of the Legislative Finance Committee, was completed by the independent audit firm Clifton Larson Allen, LLP. It notes that OSI relied on the insurance companies to self-report but did not have a process for tracking which companies should have been reporting or for adequate verification of amounts paid.

“With such significant amounts of revenue involved, the honor system is a wholly inadequate approach to tax administration,” Keller said.

In the cover letter to the audit, Keller outlined recommendations to address the concerns raised.

First, the state auditor urges OSI to pursue all past underpayments to make the state whole. The State Auditor has required OSI to provide a monthly timetable for specific dollar amounts recovered and outstanding.

Second, the state auditor urges OSI to take swift, specific and measurable corrective actions to avoid further underpayments. These measures should include transparency and accountability to the Legislature and the public.

In 2014, the New Mexico legislature appropriated funds to OSI to conduct a premium tax audit. When the audit was not completed in a timely manner, the Legislature made the audit subject to oversight by the State Auditor. The complete audit report is available here: osanm.org/audit_reports/detail/10327.

The Office of the State Auditor helps government work better by providing transparency and accountability for government spending; informing policy choices; and tackling fraud, waste and abuse. OSA is an independently elected executive agency responsible for examining the use of public dollars in New Mexico.

Indian Capital to shine with fourth annual Gallup Film Festival

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Gallup Film Festival backed by city, fans

For the past few years, organizers of the Gallup Film Festival have rolled out the red carpet for superstars of small independent films, notable filmmakers, and up-and-coming screen celebrities trying to make a name for themselves in the film industry.

Many arrive at the event with their latest and often as-yet unreleased films in tow, while some engage with the audience in question-and-answer sessions after a screening.

This year is no exception, with film stars like Martin Sensmeier set to appear at the El Morro Theatre — the primary venue for the festival — on Sept. 17 for a special sit-down with filmgoers. Sensmeier is from the Tlingit and Koyukon-Athabaskan tribes of Alaska. He joins Denzel Washington in the debut of Antoine Fuqua’s upcoming The Magnificent Seven, which will hit theaters late September.

“This festival has a lot of variety in terms of film offerings,” GFF Director Knifewing Segura said. “We have shorts, comedies, dramas, foreign films. There is something for everyone. I think everyone will enjoy themselves.”

Segura, a former Gallup Police Department officer, as well as the founder and CEO of the Downtown Conference Center, said question-and answer-sessions, for the most part, represent the glitzy side of film festivals. But, he said, there’s also an equally significant aspect of film festivals that’s often obscured among the new faces and star-power that come to town.

“I think a big thing about film festivals, and certainly this film festival, is the exposure the relatively small number of nascent filmmakers receive for having their films selected for screening and possible future distribution,” Segura explained. “A lot of times a film festival, no matter what your inclusion, is the first step toward a career in film or TV.”

Some 46 films are slated to be shown at the El Morro Theatre Sept. 16, 17, and 18.

Natasha Hale is slated to give a talk or two this weekend.

Hale (formerly Natasha Johnson) is a Native American program manager for the Grand Canyon Trust — a nonprofit that works to protect the land, water, and air quality of the Grand Canyon.

Hale’s originally from Twin Lakes, on the Navajo Nation, and was the lead actress in Turquoise Rose (2007), a drama directed and produced by Flagstaff-based Travis Holt Hamilton and shot primarily on the Navajo Nation.

The opening-night agenda for the Gallup Film Festival includes the session by Sensmeier and a meet-and-greet kick-off party at the Downtown Conference Center, 204 W. Coal Ave.

“We’re psyched this year because we’ve extended the advertising to across the country,” Segura said. “We have films from as far away as Iran, Canada, Spain, from places in the former Soviet Union, Poland, Italy, France, and of course, the United States. From the feedback I’m getting from the community and from the people who’ve submitted films, this looks like it’s going to be big. Real big.”

HOW DID GALLUP FILM FEST GET ITS START?

As a volunteer video coordinator at the El Morro Theatre — which has been listed on the National Register of Historic Places since 1988 — several years ago, Segura, who is Chiricahua Apache, worked alongside his Navajo wife, Beverly Newman, who was the theater manager at the time. The two wondered what could be done annually to draw people from Gallup’s art and film community.

The plan hit an impasse when Newman was transferred to another city job across town. But Segura kept ahold of the film idea and put on the first festival three years ago. He said attendance has steadily grown over the years.

This year, the city of Gallup awarded the festival $16,000 in lodgers tax funding. It was the first time the festival received such funding in its short history.

“That was a blessing, and I am very thankful for it,” Segura said of the lodgers tax award. “To say that [the festival’s] now on the map is an understatement.”

FILM SAMPLE

The Chickasaw Nation-produced film Te Ata was selected for this year’s festival. The film is based on a true story about Chickasaw storyteller Mary Thompson Fisher.

Chickasaw Nation (Oklahoma) Governor Bill Anoatubby said the film is an effort to tell the story of the Chickasaw Nation and its people. The Chickasaw Nation represents the twelfth largest tribe in the U.S.

“As a performing artist, Te Ata was a significant part of a movement that helped members of the public view Native Americans as a vital part of American society,” Anoatubby said. “Her performances touched the lives of thousands of families who learned to better appreciate the positive contributions Native Americans have made to this great country.”

THE FORMAT

The $5 tickets are good for “blocks” of showings on specified days, meaning film-goers may see multiple films on any given day.

Navajo film star Roger Willie (Windtalkers, 2002) is on tap to promote the film, The Watchman’s Canoe, with Director Barrie Chase.

Bands and soloist round out the event, with performances by Gary Farmer and the Troublemakers, Levi Platero, Clan-Destine, Kelly Mortenson, and Fate’s Destiny.

Segura said throughout the festival, audience members will be asked to anonymously cast votes for their favorite films. There are recognitions for best male and female actors, best editor, best foreign film, and best screenplay.

Information: For a full schedule, visit: gallupfilmfestival.com or go to page 22 of the Calendar section. Friday night kick-off party: $10; Saturday and Sunday films: $5 per block. Weekend pass Sept. 17 & 18: $30 (does not include Friday’s Kick-Off Party).

To Purchase Tickets: Gallup Downtown Conference Center, 204 West Coal Ave. Place your order for Will Call at (505) 722-8982.

By Bernie Dotson
Sun Correspondent


Gallup remembers Sept. 11, 2001

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Indian Capital comes together for remembrance, prayer

Several dozen area people gathered at the McKinley County Courthouse the morning of Sept. 11 to honor those who lost their lives 15 years ago during the terrorist events of Sept. 11, 2001. The free event was put on by the city of Gallup and attended by folks from around greater McKinley County.

Mayor Jackie McKinney delivered a short address and said police officers and first responders work daily under sometimes trying conditions to help ensure the safety of people under their watch. He said the sacrifices made by first responders that day in 2001 must never be forgotten.

“These are remarkable people,” McKinney said.

The mayor and Gallup Police Department Chief Phillip Hart were keynote speakers at the remembrance ceremony.

“There are people in the world who don’t like what America stands for,” Mckinney said.

Hart, a career law enforcement officer, said he was living and working in Spokane, Wash., when he heard the news of the terrorist attacks. He said the men and women who died trying to save people at the World Trade Center in New York City were heroes who should be remembered forever.

“This is the first time that I’ve attended an event like this,” Hart said. “I remember very vividly the events that occurred on Sept. 11, 2001.”

Hart said he was especially concerned 15 years ago because his father was an airline pilot for United Airlines. United Flight 93 crashed in Shanksville, Pa., after taking off from Newark International Airport in New Jersey, bound for San Francisco. Hart’s father was not flying that plane, but the matter hit close to home, Hart said.

“I tried to stay abreast of the news that day,” the police chief said.

Officers, firefighters, deputies, and civilians bowed their heads in silence during intervals of the ceremony as members of the Gallup Fire Department and Police Honor Guards went through the posting of colors and a presentation of wreaths.

Gallup Fire Battalion Chief Michael Hoffman recited the 9/11 events, and a national anthem was sung by Renee Jaramillo. Gallup Councilwoman Fran Palochak, a U.S. Navy veteran, gave an invocation. Gallup Deputy Fire Chief Jesus Morales provided opening and closing remarks, and GPD Officer Kelly Akeson played “Amazing Grace” on the bagpipes.

Each appreciated the ceremony.

“Yes, I remember that day,” Palochak recalled. “I think it’s something that none of us will soon forget.”

Gallup Councilman Allan Landavazo said 9/11 is significant for him, as he has a son-in-law and other family members who currently serve and have served in the military.

“I think it’s a very important date for all of us to remember,” Landavazo said. “And I think ceremonies like this are important in terms of reflecting on what happend.”

Feliz Martinez, a Vietnam veteran, said people should never take 9/11 for granted.

“I don’t like it when I see people bad-mouthing and desecrating the flag,” he said.

The Sept. 11, 2001 attacks were a series of four coordinated terrorist air attacks by the Islamic terrorist group al-Qaeda. Aside from the killings, the attacks caused more than $10 billion in property and infrastructure damage.

Of the 2,977 people killed, 343 were firefighters, 60 were police officers, and four were medics, according to reports. The death toll is still climbing due to health complications among first responders and victims at Ground Zero.

Morales and McKinney noted that this was the first time the 45-minute remembrance was conducted at the downtown McKinley County Courthouse Plaza and not the city’s main fire station on Nizhoni Boulevard. The location was moved at the request of Palochak, who suggested the Courthouse was a more appropriate and accommodating setting.

The Sept. 11 event followed another at the El Morro Theatre on Sept. 10 about veterans in film. The documentaries Homecoming and Searching for Home were shown and band Consider the Source performed.

By Bernie Dotson
Sun Correspondent


Emergency water restriction declaration for city of Gallup

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Staff Reports

Due to ongoing repairs to the main water supply for Gallup — the Grandview water tank, which is a major 16-inch water main — on Sept. 15, the city of Gallup imposed the following water restrictions:

  • Outdoor irrigation at city facilities is prohibited until further notice.
  • Outdoor irrigation and outdoor water use by residents and commercial businesses is prohibited until further notice.
  • The washing of automobiles, trucks, trailers, boats, airplanes, or other mobile equipment is prohibited, unless the washing of vehicles/mobile equipment is done at commercial car washes.

Gallup residents are also asked to conserve water by any reasonable means until further notice. The public will be notified when the restrictions are lifted.

NM lawmakers call treatment of N.D. protestors 'deplorable'

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Update: Obama, government agencies put a stop to pipeline for now.

Udall, Heinrich, Lujan, and Grisham pen letter to Obama, asking for intervention

WASHINGTON, D.C. – U.S. Senators Tom Udall and Martin Heinrich and U.S. Representatives Ben Ray Luján and Michelle Lujan Grisham sent a letter to President Obama Sept. 8, calling on the administration to intervene in the recent escalation of violence by private security personnel against Native protestors over the construction of the Dakota Access Pipeline. The New Mexico lawmakers took action in response to the growing concerns in tribal communities across New Mexico about the First Amendment rights and abusive treatment of Native protestors.

"We oppose and condemn unjustified violence against protestors in the strongest possible terms. The aggressive actions undertaken by private contractor security personnel in North Dakota including the use of pepper spray and dogs are alarming, and it is important that the concerns regarding this project are given due consideration and steps are taken to ensure the safety of everyone on site," the lawmakers wrote.

The New Mexico delegation was sent letters and resolutions from Pueblo of Isleta Governor E. Paul Torres on behalf of the All Pueblo Council of Governors representing 20 pueblos, Navajo Nation President Russell Begaye and Vice President Jonathan Nez, and the President of the Shiprock Chapter Duane Chili Yazzie.

"In particular we call to your attention the resolution from the Shiprock Chapter calling on your administration to intervene in the deplorable recent escalation of violence between private security personnel and Native American protestors over the construction of the Dakota Access Pipeline," the lawmakers continued.

The full text of the letter is below.

September 8, 2016

The President
The White House
Washington, DC 20500

Dear Mr. President: We would like to bring to your attention the attached letters and resolutions shared with us by Pueblo of Isleta Governor E. Paul Torres on behalf of the All Pueblo Council of Governors representing 20 pueblos, Navajo Nation President Russell Begaye and Vice President Jonathan Nez, and the President of the Shiprock Chapter Duane Chili Yazzie. In particular we call to your attention the resolution from the Shiprock Chapter calling on your administration to intervene in the deplorable recent escalation of violence between private security personnel and Native American protestors over the construction of the Dakota Access Pipeline.

We oppose and condemn unjustified violence against protestors in the strongest possible terms. The aggressive actions undertaken by private contractor security personnel in North Dakota including the use of pepper spray and dogs are alarming, and it is important that the concerns regarding this project are given due consideration and steps are taken to ensure the safety of everyone on site.

We are aware of ongoing litigation concerning the Army Corps of Engineers' approval of permits, but we request an immediate intervention into this escalating violence and that your administration respond to the growing concerns in tribal communities across New Mexico about the First Amendment rights and abusive treatment of Native American protestors.

Thank you for your prompt attention to this important matter.

Sincerely,

Tom Udall
United States Senator

Martin Heinrich
United States Senator

Ben Ray Luján
United States Representative

Michelle Lujan Grisham
United States Representative

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