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N.M. DOT renews push for $1.5 billion bonding package, proposes work‑zone speed cameras and user fees to shore up road funding
Summary
The New Mexico Department of Transportation told the Transportation Infrastructure Revenue Subcommittee it will reintroduce House Bill 145 to authorize up to $1.5 billion in transportation bonding for state‑owned roads, paired with revenue changes (vehicle registration, weight‑distance tax and an electric‑vehicle surcharge) to produce roughly $70 million a year for maintenance; the agency also seeks authority for automated speed enforcement in work zones.
New Mexico Department of Transportation Secretary Serna told the Transportation Infrastructure Revenue Subcommittee in Los Alamos that the agency will reintroduce a bonding bill and accompanying revenue changes to address shrinking purchasing power for road construction and mounting maintenance needs. "We function fundamentally with about a $1,300,000,000 budget," Serna said, framing a shortfall driven by rising construction costs and relatively flat revenues.
The plan revives the authority in last decade’s GRIP-era bonding: the reworked bill (to be introduced as the 2026 successor to House Bill 145) would allow the State Transportation Commission to issue up to $1.5 billion in bonding authority for state‑owned roads. "It provides the State Transportation Commission with the authority to issue up to $1,500,000,000 in transportation for state owned roads," Serna said, noting the bonds would stretch repayment over roughly 20 years and that the agency expects roughly $108 million in annual debt service—similar to the state’s current debt service obligations.
Why it matters: DOT officials told the committee that construction costs have risen faster than revenues for two decades; the department cited a transportation construction price index more than three times its 2003 level and projected that delaying projects increases final costs. "Every year we don't do a project, the likelihood… it'll increase by 5.5% year over year," Serna said during questioning about project delays.
Funding levers and maintenance capacity: The administration said the bill itself would not raise the gasoline tax. Instead, the DOT and bill sponsors would pair bonding authority with three revenue levers to create roughly $70 million in new recurring road funding: a 25% increase in vehicle registration fees, a proposed 35% increase in the weight‑distance tax (estimated to produce about $40 million), and an electric‑vehicle registration surcharge to replace fuel tax revenue lost as vehicle efficiency rises. Serna said the truckers’ association previously supported a weight‑distance increase on the condition that 100% of the new revenue be dedicated to the Department of Transportation.
Automated speed enforcement and local funds: Beyond bonding and revenue adjustments, Serna outlined two other measures the department is preparing: authority to allow local governments to place automated speed‑enforcement cameras on state routes in work zones and a proposal to combine the Transportation Project Fund and the Local Government Road Fund into a single, simpler $75 million annual program for local projects to reduce administrative barriers and lower local match requirements.
Concerns from members: Several committee members pressed on equity and local impacts. Representative Jennifer Jones said she worries about rural residents and truckers reacting to tax increases and asked whether bonding is preferable to raising gas taxes. Serna replied the bonding proposal does not increase fuel taxes and that the registration and weight‑distance changes are intended to preserve road‑user equity as fuel efficiency improves. Senator Maestas raised questions about whether borrowing now would affect the state’s bond rating; Serna said he would consult the DOT’s bond adviser.
Enforcement and appeals: On automated enforcement the department emphasized a civil‑penalty model rather than criminal motor‑citations, advance public notice of camera areas and an administrative appeals process discussed in Senate Judiciary. Serna said the department has consulted with states such as Washington on program design and appeals.
Next steps: DOT staff said they have begun drafting the 2026 bill and expect to file it early in the 30‑day session. The department also asked the committee for support on bonding authority and for continued engagement on how the new revenue would be structured and distributed to maintenance and local projects.
Sources: Remarks and answers to members’ questions by Secretary Serna and DOT staff before the Transportation Infrastructure Revenue Subcommittee in Los Alamos.
