SANTA FE, NM — Deteriorating roads cost New Mexico drivers $3.6 billion a year, and the state has $5.6 billion in unfunded transportation needs.
The New Mexico Department of Transportation (NMDOT) recently presented its $487 million nonrecurring request for fiscal year 2027 to the Legislative Finance Committee, citing declining fuel tax revenues, rising construction costs, and diverse transportation sector needs.
The department’s proposed fiscal year 2027 operating budget is $1.3 billion — a $29.9 million decrease from the current fiscal year. As in past years, NMDOT’s operating budget does not include any funding from the state general fund.
“This request is about maintaining our commitment to New Mexico communities,” NMDOT Secretary Ricky Serna said. “Every dollar invested in our roads, bridges, and rural airports supports economic growth, improves safety, and connects families to jobs, schools, and essential services.”
The percentage of state roads rated in acceptable condition has dropped from 75 percent in 2011 to 69 percent in 2023.
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The $487 million nonrecurring request includes:
- $420 million for construction, maintenance, and federal matching funds
- $25 million for rural air service
- $12 million for roadway beautification
- $10 million for heavy equipment and vehicle fleet replacement
- $10 million for electric vehicle charging infrastructure
- $10 million for traffic safety improvements
Without legislative action, State Road Fund revenues are projected to decline 13 percent by 2050 as fuel-efficient and electric vehicles reduce gas tax collections. Construction costs are expected to increase 136 percent over the same period.
The department and the Governor are preparing to reintroduce House Bill 145 from the 2025 session, which would provide the Transportation Commission with bonding authority of up to $1.5 billion and generate more than $70 million annually in new recurring revenue for the Road Fund. Bond proceeds would be used only for State Transportation Improvement Plan projects, with the department reporting regularly on funded work.
