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Wednesday, May 07, 2008

N.M. Transportation Officials Outline Financial Problems

By Barry Massey
Associated Press
      
    SANTA FE — Rising gasoline prices could aggravate financial problems confronting the state Department of Transportation and New Mexico's highway system, lawmakers were warned Wednesday.
    The agency expects that motorists will cut back on their travel because of high gasoline prices and that will mean less money flowing to the state from New Mexico's fuels taxes.
    Taxes on gasoline and special fuels such as diesel provide more than half of the revenue for the state road fund that pays for operations of the Transportation Department, which maintains and builds highways.
    New Mexico already faces a transportation financing shortfall of a half billion dollars and the department has put 29 state road construction projects on hold until more money is found to pay for them.
    Top department officials outlined other financial woes to the Legislative Finance Committee, including an $80 million gap in funding for a transportation package enacted last year for local government and tribal projects.
    Deputy Transportation Secretary Robert Ortiz said the agency estimates it needed an additional $83 million a year to better maintain highways and $81 million annually for work on bridges.
    "We are doing as much as we can with the dollars that we have,'' said Ortiz.
    However, he said the agency expects that gas tax revenues will drop in the coming months because of reduced fuel sales. The department provided no estimates on how much of a decline is likely.
    A study group has suggested a number of proposals to resolve the financial squeeze facing the department. The funding options include raising motor vehicle registration fees and increasing the state's gross receipts tax rate, with the money earmarked for transportation.
    Several committee members said Gov. Bill Richardson's support will be necessary to win approval in the Legislature of a tax increase or other measures to provide extra money for transportation.
    "The public is going to have to understand that to get the roads they demand there is a price to pay,'' said Sen. John Arthur Smith, a Deming Democrat and chairman of the committee.
    However, Senate Republican Whip Leonard Lee Rawson of Las Cruces said a tax increase for transportation will be difficult to push through the Legislature even if Richardson backs it.
    Agency officials said the administration hasn't made any decisions on transportation policy proposals for the 2009 session of the Legislature.

Copyright ©2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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