Road bill provides needed money for roads but unnecessarily raises taxes
The Rio Grande Foundation has been clear in expressing support for a multi-pronged approach to improving our State’s roads. SB 2 is the Gov.’s preferred approach. As discussed in the Santa Fe New Mexican this bill would use bonding (mostly in the form of debt) to provide $1.5 billion for New Mexico roads. The Rio Grande Foundation has expressed concern about taking on new debt for roads at a time when:
- New Mexico has been in a budget bonanza with rapidly increased spending. There should never have been a shortage of road funds in the first place. The Legislature and Gov. should use plentiful existing funds to improve and expand our roads.
- There is $7 billion in unspent capital outlay money available that could be repurposed by the Legislature to essential transportation projects like roads.
- Perhaps worst of all, the bill would increase taxes and fees to generate additional revenue for the State Road Fund, including a 35% increase to the weight-distance tax on heavy commercial vehicles and a 25% increase to vehicle registration fees.
New Mexicans should not be forced to pay for the unwillingness of the Legislature and Gov. to properly fund the most basic government services (basic infrastructure). While there is one positive “revenue enhancement” contained in the bill (a fee on EV’s to fund the roads since they don’t pay the gas tax), but that doesn’t save this proposal from being fatally flawed. SB 2 has been rated as a -6 out of a possible +8 to -8 in the Rio Grande Foundation’s Freedom Index.
