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F I S C A L I M P A C T R E P O R T





SPONSOR: Lyons DATE TYPED: 1/26/00 HB
SHORT TITLE: US Highway 87 SB 64
ANALYST: Valdes


APPROPRIATION

Appropriation Contained
Estimated Additional Impact
 Recurring

or Non-Rec

 Fund

Affected

FY00 FY01 FY00 FY01
See Narrative Highway Bonds



(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY00 FY01



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SUMMARY



Synopsis of Bill



This bill authorizes the sale of state highway bonds in the amount of $143 million for four-lane construction of US Highway 87 from Raton to Clayton.



Significant Issues



The authority to sell bonds is contingent on:

New Mexico receiving additional federal obligation authority The Legislature increasing the statutory bonding authority cap from $1,124 billion to $1,333 billion.



FISCAL IMPLICATIONS



This bill authorizes the sale of state highway bonds in the amount of $143 million for four-lane construction of US Highway 87 from Raton to Clayton.



TECHNICAL ISSUES



The highway between Raton and Clayton is officially designated as US 64/87.



OTHER SUBSTANTIVE ISSUES



State law limits the total highway bonding authority to $1.124 billion after June 30, 2001 and requires specific authorization of new projects by the Legislature. Laws of 1998, Chapter 84 and 85 authorized $1.190 billion in highway bonds. To allow the department to sell bonds for this project, the Legislature would have to increase the bonding authority by $209 million, to $1.333 billion.



New Mexico has received additional federal obligation authority as a result of the Transportation Equity Act for the 21st Century (TEA-21).However, since obligation levels are less than apportionment levels, the added federal funds available to the department for debt service can support $900 million in highway bonds, $219 million less than the amount already authorized by the Legislature.



The State Highway Commission policy on debt management states, "No new debt secured by Pledged Revenues of Federal-aid Secured Bonds shall be issued by the Commission unless new revenues have been identified for repayment of such debt.



MFV/njw