New Mexico Department of Transportation officials are beginning to dole out hundreds of millions of dollars on statewide road projects after Gov. Michelle Lujan Grisham in February signed a bill that authorized $1.5 billion in bonds.
Speaking before the interim Transportation Infrastructure Revenue Subcommittee Tuesday morning, acting NMDOT Secretary David Quintana said bonds laid out in Senate Bill 2 have been a much-needed boost for infrastructure projects across the state. The state was able to close on selling its first series of bonds just a half hour before the committee hearing in Santa Fe, Quintana told lawmakers.
The first series of bonds is worth about $219 million. Of that, $125 million of bond revenue will support a border connector highway project in Doña Ana County, $74.8 million will go toward a Nogal Canyon Bridge replacement project in Socorro County and $19.6 million will support an Interstate 40 bridge replacement project in McKinley County.
Another series of bonds – worth about $130 million – includes $30 million to reconstruct a state highway that runs through Angel Fire and Mora County, $50 million to rebuild U.S. Route 64 in the Four Corners and $50 million for Cerrillos Road between St. Michaels and St. Francis drives in Santa Fe.
As road conditions worsen, state residents often bear the cost. Quintana and multiple lawmakers referred to a January report from the Washington, D.C.-based transportation research nonprofit TRIP, which found a $7.5 billion shortfall in New Mexico’s transportation projects. Quintana added that New Mexicans pay more than $1,000 annually on car repairs and wasted fuel.
His presentation noted that the State Road Fund – which draws revenue from taxes on gasoline and special fuels, such as diesel, as well as registration fees – is outperforming previous projections, in large part because of the bonds. However, its revenue is expected to decrease nearly 16% between 2030 and 2050, Quintana said.
“The additional recurring revenue we’ve received through Senate Bill 2, that’s what’s getting our State Road Fund flush,” Quintana told lawmakers on the subcommittee.
State transportation officials have previously warned lawmakers that several factors, including slowed growth of gasoline tax as residents who transition to electric vehicles no longer need to purchase fuel.
“These are impactful (changes), particularly in some of our rural communities,” Rep. Cynthia Borrego (D-Albuquerque) said during Tuesday morning’s hearing. “We see it all across the state – the potholes, the road quality.”
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