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DOT seeks $1.5 billion bonding authority, one-time construction funds; LFC and executive budgets differ
Summary
Department of Transportation officials outlined a request for bonding authority and multiple one-time appropriations, and explained differences between the executive budget and Legislative Finance Committee recommendation ahead of upcoming negotiations.
The New Mexico Department of Transportation asked the Tax, Business and Transportation Committee on Feb. 1 to consider legislation and one-time appropriations to meet construction and maintenance needs as regular state distributions falter.
Ricky Serna discussed a proposed bill that would restore a form of bonding authority for the State Transportation Commission. Serna said the measure being pursued in the House, House Bill 145, would “authorize State Transportation Commission $1,500,000,000 in construction bonding” and serve as an available line of credit; statutory limits would continue to cap the department’s aggregate debt at the level described in statute.
On the department’s operating and supplemental budget, Mallory Montanatos explained that DOT does not receive recurring general fund appropriations and relies on federal apportionments and tax distributions. She described negotiations between DOT, the Legislative Finance Committee (LFC) and the Department of Finance and Administration, and said the LFC recommendation uses about $53,000,000 of the agency’s unallocated cash in its proposed fiscal plan.
Montanatos outlined the executive request and LFC differences: the department’s total executive request was presented as $1,250,000,000 while LFC’s recommendation was $1,300,000,000. On special one-time general-fund items the department requested $10,000,000 for beautification (litter pickup), $12,000,000 for rural air service enhancement and $300,000,000 for construction and maintenance; LFC recommended $188,000,000 for construction and maintenance, $100,000,000 for the transportation project fund, $50,000,000 for wildlife corridors, and $12,000,000 for equipment.
Senator Jaramillo criticized the proposed $10,000,000 beautification item as too large for litter pickup but otherwise thanked DOT crews for their work. Senator O'Malley asked for clarification on the fund-balance treatment; Montanatos said the LFC recommendation would use unallocated cash and that the final amount would be negotiated during session.
Serna also previewed a safety-related bill: Senator Bobby Gonzalez is expected to introduce legislation to allow the Department of Transportation, working with the Department of Public Safety, to place automated speed-enforcement cameras in highway construction zones. Serna described the current state statute as allowing DOT to authorize local governments to place cameras but not to place them on DOT-managed roads itself; the pending bill would extend legal authority to DOT to authorize cameras on state roads during construction.
DOT leaders emphasized the agency’s capital-outlay needs—Serna said the department has the second-largest physical footprint of any state agency and frequently must use road funds to pay for capital maintenance and employee pay increases when general fund appropriations are not provided. The department’s capital-outlay request noted $20,000,000 for electric vehicle chargers, $32,000,000 for patrol and district improvements, and $10,000,000 for equipment.
No formal committee action or votes were taken; DOT staff said they will return to the committee with bills and fiscal materials during the bill hearing weeks that start next Tuesday.
