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Senators: Repairing Roads by Using Gas Tax Creates Jobs and Keeps New Mexicans Out of Debt

Senator Mary Kay Papen (D)

  Santa Fe, NM – The State of New Mexico is at a crossroads: do we invest in the infrastructure and roads that are in dire need across the state, or do we allow them to continue to erode? While not glamorous, investing in roads pays dividends to the community and state for many years to come.   During the economic downturn, New Mexico delayed investments in roads and relied on the federal influx of money to upgrade them.  As the national economy has improved, the stimulus money used to fund the federal programs is no longer available.  Those federal monies have dried up and it is time for us, as a state, to invest in our own infrastructure.  The real question is: how to do that in a responsible manner?

A reasonable increase in the gas and special fuel taxes is a responsible way to fund our roads. It would provide more than 16,000 jobs statewide, with many in our local communities.Senator John Arthur Smith (D-35-Dona Ana, Hidalgo, Luna & Sierra) has proposed such a tax. Pump prices for gasoline are low and projected to stay so for the near future.  A modest 10 cent per gallon tax increase would raise substantial revenue for roads.  Half of the increase would be allocated for statewide roads and half would be available for local county and municipal roads.  It should be noted that the majority of the proposed tax will be paid for by out-of-state trucks, which cause the most damage to our roads and highways.

Over the last several administrations, roads have been funded through bonded indebtedness.  We borrowed money to be repaid by future severance taxes and future federal appropriations. The State is currently in debt through bonds by approximately $1.4 billion.  The cost just to service those bonds is about $160 million.  This has limited the money available for other infrastructure projects. It is an irresponsible practice when the bond is longer than the expected life of the project and the money is used to pay off debt instead of funding roads. Roads need regular maintenance and when they need to be repaired before they are fully paid for, we have not been prudent with the public’s money.

Years ago, we had enough money to pay for our roads.  The gasoline tax was designated as the funding source to keep our roads maintained.  However, while inflation has eaten away at the buying power of the gas tax, cars and trucks have gotten much more efficient and use substantially less fuel.  As a result, the gas and special fuels taxes do not provide enough revenue to meet the need to build, repair, and maintain our roads.

Every community in the state would benefit from this increase in the gas and special fuels tax. In Southern New Mexico, where our districts are, the increased revenue would fund Airport Road that is in dire need of upgrading so we can fully benefit from the economic growth at the border complex.  It would fund roads on the East Mesa of Las Cruces and city road projects where we continue to see our city’s growth and needs. It would fund rural roads in the south valley of Dona Ana County.  It would fund upgrades to roads on both sides of Highway 70 in the Butterfield Park, Organ, Mesa Grande, Santa Teresa, and Mesilla areas.

The proposed gas tax would be in line with those levied in other states.   It would ensure that our roads have the funding needed to maintain them without mortgaging our future. This responsible, pay-as-you-go solution to fix our aging roads is also job-focused and is in line with the Democratic “Ready-to-Work” initiative. There is no doubt New Mexicans are “Ready-to-Work” and Sen. Smith’s proposal will provide the necessary jobs that will put our state back on the road to recovery.