Spaceport America says regional economic output rose as it warns of budget strains and asks for staffing and infrastructure support

Spaceport America officials told the Legislative committee that the facility has shifted from a remote demonstration site into an active commercial hub, but that financial and infrastructure constraints could limit near-term growth. An economic-impact analysis prepared by New Mexico State University’s Center for Border Economic Development (CBED) showed total output tied to Spaceport activities rising from roughly $50 million in 2019 to about $220 million in 2024 and tax revenue impacts growing from about $7 million to $24 million over the same span.

Scott McLaughlin (referred to in committee discussion as the spaceport’s executive leadership) and CBED presenters said the study measured combined effects from tenant operations, tenant-funded construction and out‑of‑state visitor spending. Kramer Whittingham of Arrowhead and Chris Erickson of NMSU explained the methodology uses standard input‑output modelling (IMPLAN) and reported tenant‑supported jobs rising significantly between 2019 and 2024.

Why it matters: spaceport leaders said the facility is increasingly drawing long‑term tenants and defense contractors, which raises the region’s economic stakes. Committee members pressed for more granular breakdowns of how many construction jobs and what percentage of purchases are captured by New Mexico firms; CBED said its model can be adjusted to estimate local sourcing but that some customer survey responses may be under‑reported.

Budget risks and staff request: Spaceport officials told lawmakers its operating budget is about $12 million per year and has declined since Virgin Galactic paused flights, creating a reliance on fund balance and a risk that the authority could lack the cash to respond to emergency repairs or onboard a major new customer. Officials said customer revenues can take up to 18 months to be audited and recognized for use, causing a cash‑timing problem. To manage growing workloads, the spaceport requested five FTEs (including a STEM workforce coordinator, deputy director, facilities technician, construction projects lead and contracts manager) to support construction, tenant coordination and outreach.

Infrastructure priorities: presenters outlined roughly $40 million in capital projects underway and said key priorities to attract and host new tenants include extending water, paving and utilities to the vertical launch area, runway maintenance, and improvements to the front‑entry Gateway to Space building. They also noted a 40‑year lease with the State Land Office that remits 2% of customer revenues to the Land Office.

What’s next: presenters committed to supplying the committee with the master plan documents and indicated they are working with Virgin Galactic and other tenants to translate strategic options into a business plan that clarifies likely revenue and job outcomes. Lawmakers requested more regular, graphed updates on local hiring and what share of construction spending stays inside New Mexico.

Ending: The committee took the briefing for the record and moved on to the New Mexico Border Authority presentation; no formal vote or funding decision was taken during the session.