DALLAS — New Mexico Gov. Bill Richardson wants to spend almost $600 million during the next fiscal year on capital outlay efforts ranging from $50 million for state road projects stalled by high construction costs to $2 million to provide laptop computers to seventh graders.
The capital outlay budget the governor submitted to the Legislature includes $369.8 million of projects financed by proceeds from the state’s energy severance tax bonds and nonrecurring general fund revenues, and $224.8 million of proceeds from statewide general obligation bonds that voters would need to approve in November.
Richardson’s proposed fiscal 2009 comprehensive budget totals $6 billion, up $362 million from fiscal 2008.
State lawmakers will consider Richardson’s proposals and capital spending proposals recommended by the Legislative Finance Committee, the Legislature’s permanent budget oversight panel, in developing the final version of the fiscal 2009 capital outlay budget. The Legislature’s 30-day budget session began Jan. 15 and is scheduled to conclude at noon on Feb. 14.
Money available for general capital outlay projects includes $292 million from nonrecurring general fund revenues, $322.5 million of senior severance tax bond capacity, and $224.8 million of GO bond capacity based on the state constitutional debt limit of 1% of total statewide taxable assets. Another $221.2 million of capacity is available for supplemental severance tax debt, but that money is dedicated to public school projects.
The Legislature approved a $622 million capital outlay budget in fiscal 2008, but less money is available this year than last, said Stephanie Lenhart, senior policy analyst at the New Mexico Department of Finance and Administration.
“The severance tax bond capacity is about what it was in fiscal 2008, but the nonrecurring general fund revenues are less than half of what we had last year,” she said. “And the money available this year includes more than $220 million of GO bond capacity, which was not in last year’s budget.”
The GO bond packages are presented to voters every two years. In 2006, voters approved $143.4 million of GOs.
The governor’s proposed GO bond package includes $133.9 million for higher education, $54.6 million for health and human services, $18.5 million for public education, $11.9 million for senior citizen programs, and $6 million for municipal libraries.
Unlike last year, when Richardson proposed spending a third of the capital outlay budget on statewide projects with the remainder of the funds available for allocation by individual legislators, this year’s budget provides only $50 million for legislators to earmark for projects within individual districts.
“The governor has been a strong proponent for reform in the capital outlay process,” Lenhart said. “This year, he has proposed projects for all the money, except for the $50 million to be appropriated by legislators.”
The executive capital budget provides $50 million to New Mexico Department of Transportation for 29 road projects that were halted in late 2007 due to a shortfall of almost $500 million in an eight-year, $1.6 billion transportation program approved in 2003.
New Mexico’s GO bonds are rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s. The senior severance tax bonds are rated Aa2 by Moody’s and AA by Standard & Poor’s, with the supplemental severance tax bonds rated AA-minus by Standard & Poor’s and Aa3 by Moody’s.
