$1.5B state road bill passes New Mexico House

A $1.5 billion bonding bill that would pay for state road maintenance and repairs while increasing vehicle registration fees and the tax rate for commercial trucks is now awaiting Gov. Michelle Lujan Grisham's signature.

Senate Bill 2 would give the state Transportation Commission authority to issue up to $1.5 billion in bonds to fund critical state road and bridge projects.

On Friday, the House of Representatives voted to pass SB 2 on a 44-23 vote — with two excused and one absent — with Democrats in favor and Republicans against the bill. The Senate approved the measure on a 31-9 vote on Jan. 23.

"This major investment in New Mexico's transportation infrastructure is long overdue, and I'm grateful to House leadership for approving it," Lujan Grisham said in a news release on Friday. 

If signed into law, governor's office spokesperson Michael Coleman said SB 2 would generate "at least $70 million a year in new, recurring revenue without raising fuel taxes."

The Journal previously reported the additional revenue would consist of increases in the tax rates for commercial trucks and vehicle registration fees as well as the implementation of a new $35 annual fee on electric vehicles registered in New Mexico. The measure, however, would not raise the state's 17-cent-per-gallon gas tax rate, which has not been changed since the 1990s.

"While there is universal agreement that state roads need a lot of work, the question is how to pay for it," Rep. Rebecca Dow, R-Truth or Consequences, said in a Facebook post. "Republican members argued that given the huge revenue surplus, there is no need to raise fees and taxes."

Coleman said the bill will address the New Mexico's $7.5 billion transportation shortfall, which has resulted in over half the state's roads needing maintenance and costing drivers more than $1,000 a year in car repairs and "wasted fuel."

"The bonding package creates a stable, predictable funding source for state road construction for years to come and frees up general fund money to support local road construction and maintenance," he said. "The package also positions the state to better match federal infrastructure funding, which can amplify state investments several times over."

SB 2 co-sponsor Sen. Bobby J. Gonzales, D-Ranchos de Taos, said in a statement the legislation would "help create jobs, improve safety and ensure New Mexico's transportation system meets the needs of our communities."

"The bond authority will create a stable and predictable funding source and reduce ongoing dependency on one-time appropriations," he said.

Gregory R.C. Hasman is a general assignment reporter and the Road Warrior. He can be reached at ghasman@abqjournal.com or 505-823-3820.