Senate committee gives due-pass recommendation to House Bill 450, a $1.2 billion capital outlay package

The Senate committee voted 9–1 to give a “do pass” recommendation to the House Taxation & Revenue Committee substitute for House Bill 450, a capital outlay package with total appropriations of about $1.2 billion.

The bill’s sponsors and staff told the committee the package includes roughly $799,800,000 in general fund appropriations, $292,000,000 in severance tax bonds and $133,000,000 in other state funds. Sponsors said the bill directs nearly $600,000,000 of general-fund money to projects prioritized by House and Senate members and the governor, with remaining funds allocated to state agencies, the judiciary and higher-education capital projects.

Committee members pressed sponsors on specific additions and the capital-outlay process. Sponsors identified several increases that were added to the bill, including $8,000,000 for a Curry County waterline expansion; $2,000,000 for a skilled nursing facility in a rural county; $1,300,000 for an early childhood facility in Eunice; $1,100,000 for a facility listed in Las Cruces; $1,600,000 for water-system improvements in Maxwell; $975,000 for housing infrastructure in Harding County; $3,375,000 for a behavioral health facility identified for a Pueblo; and $1,000,000 for a community services complex in Jemez Pueblo. The sponsors said some state-agency projects are intended to benefit local entities.

Sponsor commentary and staff briefing emphasized a $50,000,000 closing fund retained to bring previously underfunded projects to completion. “This closing fund … was provided for a waterline expansion in Curry County,” a sponsor said, adding that the fund allowed the committee to “fully fund” projects that otherwise would have been repeatedly underfunded.

Legislative Finance Committee staff member Kelly told the committee that the LFC has “recommended a floor of at least $50,000 appropriations” for capital outlay items but that the recommendation is not a legal requirement. Kelly said the committee’s process for vetting projects includes tours and vetting by LFC staff to assess readiness and “shovel ready” status.

Several members raised concerns about the long list of small appropriations and the backlog of unspent capital funds. One senator said the state’s unspent capital-balance figure is roughly $6,000,000,000 and warned that continuing to fund projects in very small increments risks leaving many projects incomplete. “People show up with a project and an idea, and they have no plan… we underfund projects,” the senator said, urging tougher standards and greater coordination among legislators and local officials.

Committee members also discussed the number and size of projects in the package. Sponsors said the bill lists more than 1,400 projects; staff noted thousands of active projects remain on the books from prior years. Members asked whether the legislature should set a minimum appropriation amount or do more regional coordination to reduce small, low-impact awards.

On a motion from Senator Gonzales, seconded by Senator Padilla, the committee voted to recommend the bill to the full Senate. The roll call recorded nine affirmative votes (Campos; Gonzales; Lanier; Padilla; Steinborn; Tobiasin; Trujillo; Shendo; Munoz) and one negative vote (Senator Woods); the chair announced a do-pass recommendation.

The committee adjourned and returned the measure to the Senate floor for further consideration. Several members warned that the capital bill could face vetoes or significant amendment on the floor and suggested capital appropriations would be a priority area for future scrutiny.