From the
Santa Fe New Mexican.com - by Barry Massey, AP, New Mexico's financial woes go beyond a more than $400 million shortfall looming next year in the state budget that pays for public education, Medicaid and other key governmental functions including courts and prisons. The state's transportation network is caught in a separate financial squeeze, and that poses another big challenge for Republican Gov.-elect Susana Martinez, who takes office Jan. 1. Transportation Secretary Gary Giron warned that his cash-strapped agency is having trouble maintaining New Mexico's roads and bridges. There's a nearly $200 million yearly shortfall for routine maintenance, such as preserving pavement, chip sealing roads and preventive repair of bridges, Giron told lawmakers recently, and an additional $50 million a year is needed to replace bridges and make major repairs. To cope with budget cuts, he said, the department will emphasize maintenance of interstate and federal highways in New Mexico. "The risk is that some state routes will fall into disrepair," Giron told the Legislative Finance Committee. The Transportation Department isn't included in the state's main $5.2 billion budget, which is financed with revenues from sales, income and severance taxes along with energy production royalties and interest earnings from New Mexico's permanent funds. Transportation is funded separately by federal highway money and earmarked state revenues — taxes on gasoline and diesel, vehicle-registration fees and weight-distance taxes paid by truckers. The department has a budget of about $803 million this year, with federal dollars covering about half of the spending. State revenues for roads have dropped as New Mexico's economy sputtered and a recovery won't happen quickly.
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New governor must tackle major shortfall in transportation funds
From the Santa Fe New Mexican.com - by Barry Massey, AP, New Mexico's financial woes go beyond a more than $400 million shortfall looming next year in the state budget that pays for public education, Medicaid and other key governmental functions including courts and prisons. The state's transportation network is caught in a separate financial squeeze, and that poses another big challenge for Republican Gov.-elect Susana Martinez, who takes office Jan. 1. Transportation Secretary Gary Giron warned that his cash-strapped agency is having trouble maintaining New Mexico's roads and bridges. There's a nearly $200 million yearly shortfall for routine maintenance, such as preserving pavement, chip sealing roads and preventive repair of bridges, Giron told lawmakers recently, and an additional $50 million a year is needed to replace bridges and make major repairs. To cope with budget cuts, he said, the department will emphasize maintenance of interstate and federal highways in New Mexico. "The risk is that some state routes will fall into disrepair," Giron told the Legislative Finance Committee. The Transportation Department isn't included in the state's main $5.2 billion budget, which is financed with revenues from sales, income and severance taxes along with energy production royalties and interest earnings from New Mexico's permanent funds. Transportation is funded separately by federal highway money and earmarked state revenues — taxes on gasoline and diesel, vehicle-registration fees and weight-distance taxes paid by truckers. The department has a budget of about $803 million this year, with federal dollars covering about half of the spending. State revenues for roads have dropped as New Mexico's economy sputtered and a recovery won't happen quickly. Read more
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