New Mexico transportation head urges retry on bond invoice

State of New Mexico

New Mexico’s transportation secretary is asking state lawmakers to take up a $1.5 billion bonding invoice in 2026 after the measure stalled within the legislature this 12 months. 

Ricky Serna instructed the Transportation Infrastructure Income Subcommittee earlier this month the income bond authorization in Home Invoice 145 would have made the New Mexico Division of Transportation much less reliant on particular appropriations and would have supplied extra predictability for state street capital initiatives and street contractors.

“The impression of our bonding invoice would face up to 10, 12 years of time for the company and positively would supply that predictability we’re on the lookout for,” Serna mentioned.

HB 145 handed the Home in a 65-0 vote in March then moved to the Senate, the place it was amended to lift about $72 million in income beginning in fiscal 2026 from a 35% improve within the weight-distance tax, a 25% hike in car registration charges, and a brand new charge for electrical and plug-in hybrid autos to offset the price of the extra debt. A vote on the measure by the complete Senate was placed on maintain.

NMDOT expects to retire in 2032 remaining debt from its earlier bond authorization in 2003, which is able to unlock room for future debt service funds, in response to Serna, who mentioned reintroduction of the invoice within the Democrat-controlled legislature is a precedence for Democratic Gov. Michelle Lujan Grisham. 

The subcommittee was largely receptive to revisiting the invoice.

‘I feel you will discover that this committee and plenty of of our (elected officers) on the state stage wish to see or not it’s taken care of as soon as and for all, and create that stability and that consolation, that of understanding that yearly there’s going to be ample funding to take care of our roads, enhance our roads,” mentioned State Rep. Artwork De La Cruz, who chairs the subcommittee. 

NMDOT had $585.9 million of bonds backed by state taxes and Federal Freeway Administration income excellent as of June 30, 2024, in response to a fiscal 2024 monetary audit.

The state company final accessed the municipal market in 2024 with a $117.48 million senior lien income bond refunding via the New Mexico Finance Authority that carried a last maturity in 2031. The bonds have been rated Aa1 by Moody’s Rankings, AA-plus by S&P International Rankings and AAA by KBRA.