New Mexico’s capital outlay problems encapsulated

Check out this recent article from the Santa Fe New Mexican. It discusses challenges the City of Santa Fe is having with regard to capital outlay money from the State. As we have discussed, New Mexico has built up a massive backlog of unspent capital outlay money.  According to the article, “Unspent capital outlay statewide likely exceeds $7 billion.”

At the Rio Grande Foundation we believe that one of MANY problems with New Mexico’s capital outlay system is that local priorities should be funded locally (not on a statewide basis). Legislators often prioritize projects whether they are really a local priority or not. As the article notes, “State lawmakers are frustrated with the municipalities’ ability to quickly spend capital outlay allocated for local projects, something that may affect what they choose to fund in upcoming sessions.”

And, due to the lack of project prioritization and any comprehensive analysis of NEEDS vs. WANTS vs. POLITICAL PORK, “One lawmaker has said she refuses to give Santa Fe more money until a sewer line connection in her district is complete, while other said their main focus is funding shovel-ready projects.”

As Santa Fe Public Works Director Regina Wheeler told a City Council committee in early July, “The Legislature funds their priorities more than they fund the city priorities.”

And, of course, New Mexico remains ranked near the very bottom of various national lists like the following from US News & World Report. See below: