Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Road Funding Corporate Tax topic
No spam. Unsubscribe anytime.
Sponsor proposes using corporate tax receipts to fund roads; committee hears bill and holds for consideration
Summary
A proposal to dedicate corporate income tax receipts to cash road projects rather than bond them drew discussion; the sponsor said the approach could fund large amounts of road work while avoiding debt, but committee members raised concerns about project capacity and borrowing alternatives and the measure was held for further consideration.
The committee heard testimony on legislation that would direct corporate income tax revenue to the State Road Fund so the state could spend cash on road projects rather than relying on bonding.
Sponsor remarks framed the idea as a way to use current surplus cash—rather than borrowing—to pay for a significant tranche of road work, with the sponsor estimating $2.1 billion in road funding over three years if the approach were fully implemented. NMDOT testimony acknowledged the potential funding but warned about agency capacity to get projects prepared for construction quickly enough to expend large cash infusions; the department said it would need time and staff capacity to deploy major appropriations.
Supporters in the room — including the Greater Albuquerque Chamber of Commerce and Associated Contractors of New Mexico — expressed backing for additional road funding. Committee members noted low interest-rate borrowing remains an option and questioned whether immediate, large cash appropriations would be the most effective approach given project readiness constraints.
The committee did not advance the bill during the hearing; the sponsor’s proposal will be held for additional consideration as the session continues.
