The school superintendent in Espanola has been placed on administrative leave following a public dispute with a weekly newspaper. The Espanola public school board made the decision regarding superintendent Evelyn Maruska and according to reports it's not likely she'll return. Maruska recently sparked dispute with the Rio Grande Sun newspaper by placing restrictions on the paper's access to schools and district personnel. The Sun, in response, stopped covering Espanola Valley High School sporting events.

A legislative committee shelved Governor Martinez's proposal to stop New Mexico from granting driver's licenses to illegal immigrants. Instead, the Democrat-controlled committee backed an alternative measure that allows illegal immigrants to continue getting licenses but for only two years before needing renewal. It also increases penalties on license fraud. This comes following a report from the Associated Press that there is widespread fraud taking place. The governor still might get to push her proposal through as the bill goes to another committee.

The unemployment rate in the state rose slightly to 6.6 percent in December, up from 6.5 the previous month. However, state labor officials say New Mexico has now had 7 straight months of positive job growth, with 7,400 more jobs in December than the same time last year. But construction went down over the past year losing 6,000 jobs while government lost 1,300. Locally Taos Mayor Darren Córdova acknowledges that this new year will bring some challenges. He credits employees for keeping the town out of the red and is confident all challenges will be met.