The Interim Transportation Infrastructure Revenue Subcommittee meeting held on August 22, 2025, in New Mexico focused on critical issues surrounding the state's transportation funding and infrastructure needs. Key discussions highlighted the significant funding gaps and the financial implications of deteriorating road conditions for New Mexicans.

The meeting revealed that New Mexico's State Road Fund totals over $500 million, with half allocated to salaries and benefits for the Department of Transportation (DOT). The budget for fiscal year 2025 is approximately $1.3 billion, with an additional $1.4 billion earmarked for revolving projects. However, a recent report indicated a staggering $5.6 billion in unfunded transportation projects, with the percentage of acceptable roads in the state declining from 75% to just under 70% since 2003.

The subcommittee also discussed the economic impact of poor road conditions, estimating that deteriorated roads cost New Mexicans around $3.6 billion annually. This figure breaks down into $1.6 billion for vehicle operating costs, $800 million for safety costs, and $1.2 billion due to congestion. On average, each registered vehicle owner in the state incurs an additional $2,000 per year due to these issues.

Funding sources for the State Road Fund were also examined, with gasoline taxes contributing 21% and diesel taxes 25%. The meeting underscored the need for a sustainable funding model, as current revenue streams may not keep pace with rising construction costs and the increasing efficiency of vehicles, which is projected to reduce fuel tax revenues significantly in the coming years.

The subcommittee is advocating for legislative changes to address these challenges, including House Bill 145, which aims to establish bonding authority to generate new revenue without impacting existing state funds. This approach seeks to provide a more predictable funding mechanism for transportation projects, ensuring that necessary infrastructure improvements can be made without the risk of budget shortfalls.

Overall, the meeting highlighted the urgent need for strategic planning and innovative funding solutions to address New Mexico's transportation infrastructure challenges, emphasizing the importance of maintaining safe and efficient roadways for all residents.