New Mexico official pushes for reintroduction of transportation bond bill

New Mexico's transportation secretary is asking state lawmakers to take up a $1.5 billion bonding bill in 2026 after the measure stalled in the legislature this year.

Ricky Serna told the Transportation Infrastructure Revenue Subcommittee earlier this month the revenue bond authorization in House Bill 145 would have made the New Mexico Department of Transportation less reliant on special appropriations and would have provided more predictability for state road capital projects and road contractors.

"The impact of our bonding bill would withstand 10, 12 years of time for the agency and certainly would provide that predictability we're looking for," Serna said.

HB 145 passed the House in a 65-0 vote in March then moved to the Senate, where it was amended to raise about $72 million in revenue starting in fiscal 2026 from a 35% increase in the weight-distance tax, a 25% hike in vehicle registration fees, and a new fee for electric and plug-in hybrid vehicles to offset the cost of the additional debt. A vote on the measure by the full Senate was put on hold.

NMDOT expects to retire in 2032 remaining debt from its previous bond authorization in 2003, which will free up room for future debt service payments, according to Serna, who said reintroduction of the bill in the Democrat-controlled legislature is a priority for Democratic Gov. Michelle Lujan Grisham.

The subcommittee was largely receptive to revisiting the bill.

'I think you'll find that this committee and many of our (elected officials) at the state level would like to see it be taken care of once and for all, and create that stability and that comfort, that of knowing that every year there's going to be adequate funding to maintain our roads, improve our roads," said State Rep. Art De La Cruz, who chairs the subcommittee.

NMDOT had $585.9 million of bonds backed by state taxes and Federal Highway Administration revenue outstanding as of June 30, 2024, according to a fiscal 2024 financial audit.

The state agency last accessed the municipal market in 2024 with a $117.48 million senior lien revenue bond refunding through the New Mexico Finance Authority that carried a final maturity in 2031. The bonds were rated Aa1 by Moody's Ratings, AA-plus by S&P Global Ratings and AAA by KBRA.