Contractors warn road funding shortfall could cost 61,000 jobs in New Mexico

Construction workers say a lack of funding from the New Mexico Department of Transportation could stall roadwork projects across the state, allowing streets to fall into disrepair and risking tens of thousands of jobs.

On Thursday, contractors and maintenance workers called on state officials to fund an emergency cash infusion of $500 million for road construction during a special session of the state Legislature in October.

NMDOT usually gets anywhere from $200 million to $300 million for new road construction, though only $65 million was allocated this year, which will cause the state to fall behind on critical maintenance and new road projects, said Dan Lewis, executive director of the Asphalt Pavement Association of New Mexico and an Albuquerque city councilor.

“We’re left with a major crisis that has implications on families around our state, implications on the safety of our roadways, and implications on economic growth in our state right now,” Lewis said.

The funding deficit puts 61,000 construction and maintenance jobs at risk statewide, said Danny Marquez of Algodones-based construction firm CA2 Testing.

“It’s not just the highway contractors. It’s the heavy equipment and all equipment supply companies, suppliers, subcontractors, surveyors, testing labs,” said Bob Wood, president of paving contractor Albuquerque Asphalt. “When there’s a lack of funding, that means there’s not as many projects, and then that translates into jobs.”

A spokesperson for Gov. Michelle Lujan Grisham said Thursday that road funding would not be included on the special session agenda, but said the governor would push for additional funding during next year’s 30-day session.

Lujan Grisham said recently she initially wanted to include road funding proposals on the agenda of the upcoming special session, along with legislation on interstate medical compacts, juvenile crime and federal immigration detention facilities. But after meeting with Democratic state leaders, the governor said she had agreed to delay consideration of those issues until the 30-day session that starts in January.

Under the current pared-back plans for the special session, lawmakers would be asked to focus primarily on a state-level response to a federal budget bill signed by President Donald Trump in July.

The contractors, however, say the roadwork funding is an emergency, and delaying the projects further could cause serious safety hazards.

“The reason why we’re asking for money in the special session is so that money could be put to use right away,” said David Otoski of Mountain States Constructors, a general contractor in Albuquerque. “I’ve talked to several of the state engineers. They have projects that are ready to go. Every single person in this room knows how poor the roads on I-10, I-25 and I-40 are and how badly they need to be repaired.”

In 2023, 69% of roads in New Mexico were considered “acceptable” by NMDOT, down from 75% in 2011. Deteriorated roads cost New Mexicans about $2,000 per year in maintenance costs to their vehicles, according to DOT data.

Earlier this month, NMDOT officials told the Legislature that New Mexico faces a $471.6 million gap in funding for priority transportation projects across the state, despite a recent infusion of federal infrastructure funds.

As it stands now, the state does not have enough funding to fully repair Interstate 40, Otoski said.

Rep. Nicole Chavez, R-Albuquerque, said she supported funding the projects during the special session and advocated for including transportation subsidies in the state budget each year to ensure the roadwork gets completed.

“You know when you’re crossing into the state, a lot of times by the condition of the roads,” Chavez said.