Budget crisis sparks urgent road fund transfer proposal

During a recent government meeting, officials addressed critical financial concerns regarding the road fund, which has seen a significant decrease in its cash balance. The current balance stands at just $386, raising alarms about potential overdrafts. A proposal was put forth to budget a transfer of $102,000 from the additional 112 fund to the road fund to cover a projected deficit of $101,766, as calculated by the Department of Finance and Administration (DFA).

Commissioner Burke highlighted that the latest financial recap did not reflect this deficit, prompting discussions about the necessity of maintaining a reserve for the road fund, which DFA mandates. Historically, the fund has maintained a cash balance of around $50,000, but this year’s drastic reduction has raised concerns about compliance with reserve requirements.

The proposed budget transfer aims to ensure that the road fund meets its reserve obligations, albeit by a narrow margin of $234. Officials clarified that the transfer would not constitute an expenditure but rather a budgetary adjustment, alleviating concerns about double counting in financial records.

In addition to the road fund discussions, the meeting also covered upcoming debt service obligations, including payments related to gross receipts tax revenue bonds and various projects funded by the New Mexico Finance Authority (NMFA). The total payment for the 2024-2025 period is projected at approximately $200,727,000, with interest costs amounting to $132,750. The officials noted that while the courthouse project was initially budgeted at $6.8 million, it has since been reduced to $5 million due to prior payments.

The meeting underscored the importance of financial oversight and the need for strategic budgeting to address both immediate and long-term fiscal responsibilities.