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Friday, October 09, 2009
NMDOT Puts NM To Work
By Gary L.J. Gir�N
Transportation Secretary
I am writing in response to the cover article in the Business Outlook section printed on Sept. 21, which at quick glance would lead the reader to believe New Mexico is lagging in efforts to put New Mexicans back to work in the construction industry.
I would like to set the record straight with regard to the impact of the American Recovery and Reinvestment Act (ARRA) funds on New Mexico's economy, in particular the amounts made available to the New Mexico Department of Transportation (NMDOT) and the jobs created through the projects that have been placed on the fast track for completion.
Under the leadership and foresight of Gov. Bill Richardson, New Mexico has been at the vanguard of stimulus-style funding activities, even prior to the current act, ARRA, and the estimated $3.2 billion of funding that became available for New Mexico in 2009.
Going back to 2003, New Mexico citizens have benefited from more than $2.3 billion of projects that have created thousands of jobs and yielded a significant number of multimodal transportation improvements across the state. The $2.3 billion comes from GRIP (Governor Richardson Investment Partnership) 1 & 2 program funds, NMDOT revenues from state sources and other federal matching funds.
To imply — or actually say through the quotes selected within the article — that the New Mexico job market hasn't seen a dramatic increase in total job numbers due to this massive infusion of funding is inaccurate. In particular, a quote stated that 5,000 construction jobs have been lost; that number is misleading. In fact given the sheer volume of construction projects launched statewide, and the massive amounts of funding dollars dedicated to the collective body of construction work ongoing, it would seem that number is implausible.
While no one in Richardson's administration will be happy until every job seeker is employed, the construction industry in New Mexico is doing far better than the article would lead the reader to believe. New Mexico is in the top half of all states for not only securing millions of ARRA dollars, but for the rapid start up of projects.
GRIP 1 was passed in 2003 by the Legislature and signed by the governor; it provided $1.585 billion for statewide projects. GRIP 2 was passed in 2007 by the Legislature and signed by the governor; it contributed an additional $110 million for city, municipality and county identified projects. The American Recovery and Reinvestment Act Stimulus funds to the DOT added $296.5 million for state and local infrastructure construction, airport improvements and transit improvements.
The DOT has historically managed a federal aid construction program ranging from $150 million to as much as $200 million. While the GRIP 1 program did contribute to a number of contracts in state fiscal year 2004, 2005 was the first full year of GRIP 1. Since then the DOT has seen a steady increase in the total amount of contracts awarded each year. The following contract award amounts by state fiscal year include the federal aid construction program, GRIP 1 and a portion of the American Recovery and Reinvestment Act Stimulus funds all let out to bid by the DOT:
FY 2004 — contract award amount $179 million; FY 2005 — contract award amount $358 million; FY 2006 — contract award amount $362 million; FY 2007 — contract award amount $353 million; FY 2008 — contract award amount $426 million; and FY 2009 — contract award amount $533 million.
These numbers reflect steady growth. The investment of these funds has improved employment, supported economic development and have improved New Mexico's infrastructure. If the New Mexico construction industry is still struggling in terms of putting its workers back on the job, it is certainly not for lack of effort by NMDOT as evidenced by the steady upward growth of its financial commitments.
It is true that there are issues ahead for the DOT: GRIP 1 and GRIP 2 will be substantially completed next year, and the stimulus funds are one-time monies that will be contracted by the end of 2010 and spent by the fall of 2012.
The governor, state Transportation Commission and NMDOT share a commitment to transportation improvements, transportation-related job expansion and the associated economic development tied to this critical industry. New Mexico will continue to reap the benefits and will be well situated to grow, thanks to the strong multimodal transportation infrastructure spanning the state.
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