The Interim Transportation Infrastructure Revenue Subcommittee convened on August 22, 2025, to discuss critical funding issues related to New Mexico's transportation infrastructure. The meeting highlighted the pressing need for revenue generation to support road maintenance and development, with a particular focus on the state's gas tax.

One of the primary discussions centered around the potential for increasing the gas tax, which has not seen a significant adjustment in over three decades. A committee member emphasized the importance of viewing the gas tax as a user fee, noting that those who do not drive would not be affected by the tax increase. This perspective was presented as a way to frame the tax increase as beneficial for road funding without imposing undue burden on the general population.

The committee acknowledged the current financial landscape, with New Mexico holding approximately $34 billion in various trust funds. However, concerns were raised about the liquidity of these funds and the challenges of accessing them for immediate infrastructure needs. The discussion pointed out that while the state has substantial cash reserves, the creation of trust funds has limited the ability to utilize these resources effectively for current projects.

Members expressed frustration over the lack of incremental increases to the gas tax, which they argued has led to a failure in adequately funding transportation needs. The last significant increase occurred in the early 1990s, and since then, inflation has eroded the purchasing power of the existing tax rate. Suggestions were made to implement a modest increase, potentially starting at one cent, to gradually build up the tax to a more sustainable level over the next two decades.

The committee also explored alternative approaches to tax structure, including the possibility of a percentage-based tax rather than a fixed amount. This method could provide a more flexible revenue stream that adjusts with market conditions, ensuring that road funding remains stable even if gas prices fluctuate.

In conclusion, the meeting underscored the urgent need for a strategic approach to transportation funding in New Mexico. The subcommittee members recognized the importance of educating the public and garnering political support for any proposed tax increases, emphasizing that investing in infrastructure is essential for the state's economic future. The discussions set the stage for further deliberations on how best to address the funding challenges facing New Mexico's transportation system.