Santa Fe, NM – Senate Democrats today, came out strongly against Governor Martinez’s plan to borrow $300 million or more for road and highway repair, and said the funds must be obtained more responsibly. Borrowing the funds leaves a future generation of New Mexicans to pay off the debt. The Governor’s proposal would finance current highway projects by issuing new debt that would be paid off over many years using revenue from the state’s severance tax on oil and gas production.
“We certainly have many road and highway repair projects that are important, but it is wrong to borrow the funds to pay for them. Her plan would spend millions on those needed projects now, but instead of paying for them today, it leaves future New Mexicans to pay off the debt for years to come. This is not responsible government spending, and we must be more careful with taxpayer dollars,” said Senator John Arthur Smith (D-35- Dona Ana, Hidalgo, Luna & Sierra).
“Senate Democrats support better ways to address the state’s current road and highway repair needs. We think it is wrong to load our kids and grandchildren with more debt,” said Sen. Smith.
Democrats have called for a gasoline tax increase of 5 cents per gallon at the pump to pay for current highway projects. The Governor opposes it. One proposal would increase the state’s gas tax rate from 17 cents per gallon to 22 cents by 2019. New Mexico has the lowest gas tax rate of all states in the region.
Democrats also are calling to ‘export the tax’ by increasing the fees on out-of-state commercial long-haul trucks and motor vehicles that travel through New Mexico. Those heavy big-rigs cause the most damage to our roads, and New Mexico’s taxpayers pay the bill.
“The Governor’s road repair plan isn’t free money. Taxpayers will have to pay off the debt for these road projects. We already are making payments on borrowed money right now, every year, and frankly we are overextended. If we adopt the Governor’s plan we will be paying for a longer period of time; it’s not financially responsible,” Sen. Smith added.