NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website.  The Adobe PDF version includes all attachments, whereas the HTML version does not.  Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

 

 

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

 

 

 

SPONSOR:

Lyons

 

DATE TYPED:

02/08/02

 

HB

 

 

SHORT TITLE:

State Highway Projects

 

SB

156/aSCORC

 

 

ANALYST:

Neel

 

 

REVENUE

 

FY 04

FY 05

FY 06

FY 07

FY 08

Funds Affected

 $(21,740.0)

 $(45,640.0)

 $(71,880.0)

 $ (100,632.0)

 $ (132,080.0)

General Fund

 $  21,740.0

 $  45,640.0

 $  71,880.0

 $  100,632.0

 $  132,080.0

State Road Fund

 

SOURCES OF INFORMATION

 

LFC files

Taxation and Revenue Department (TRD)

State Highway Department (SHD)

 

SUMMARY

 

     Synopsis of SCORC Amendment

 

The Senate Corporations and Transportation Committee amendment added an additional project to the existing 18 projects listed on the original bill.

 

     Synopsis of Original Bill

 

Senate Bill 156 amends statute to incrementally shift Motor Vehicle Excise Tax revenues from the General Fund to the State Road Fund over a five year period in the following percentages:

 

FY 03              General Fund – 100%             State Road Fund –    0%

FY 04              General Fund –  80%              State Road Fund –  20%

FY 05              General Fund –  60%              State Road Fund –  40%

FY 06              General Fund –  40%              State Road Fund –  60%

FY 07              General Fund –  20%              State Road Fund –  80%

FY 08              General Fund –   0%               State Road Fund – 100%

 

SB 156 also amends the aggregate outstanding principal amount of bonds that the state can issue for state highway projects to approximately $1.7 billion.  The bill also proposes 18 new highway projects around the state.                                                   

 

FISCAL IMPLICATIONS

 

TRD notes that the fiscal impact estimate assumes a 5% growth rate in the Motor Vehicle Excise Tax for all years after FY03. 

 

OTHER SUBSTANTIVE ISSUES

 

According to the SHD, State Road Fund revenue growth has never tended to keep pace with inflation in the absence of legislative attention; and now has been adversely affected by state tax-exempt gasoline sold by Native American distributors and by recent litigation over tax qualification (TQ) card fees.  Additional limitations on construction and maintenance are imposed by the requirement the department pay gross receipts tax on contracted projects, and by the Legislature’s transfer of some road fund money to other state agencies.

 

Over a twenty-year period, the Long Range Plan anticipates revenues totaling $6.6 billion, while projected needs for improvements to state highways ($12.3 billion) and economic development ($1.2 billion) total $13.5 billion.  Long Range Plan highway needs estimates are very conservative.  Totals do not include inflation estimates or other ancillary costs often associated with highway projects that can run 15% or more above projected costs.  Projected needs also do not include costs associated with rehabilitation of non-deficient road segments that are contiguous with deficient segments that might be included in corridor projects.  In addition, the department’s Middle Rio Grande Long Range Major Transportation Investment Study has identified extensive long-term highway needs for the state’s most populous and economically important region that are not included in the Long Range Plan projections.

 

TECHNICAL ISSUES

 

The reference to “New Mexico 550” in Section 3, Subsection A, Paragraph 6 may be a reference to U.S. Highway 550 (previously New Mexico 44).

 

OTHER SUBSTANTIVE ISSUES 

 

During FY80, 25% of the Motor Vehicle Excise Tax was directed to the State Road Fund, and that amount was increased to 75% in FY 81. From FY82 through FY87, 100% of the tax was directed to the State Road Fund. During FY88 through FY91 portions were redirected to the General Fund and the Local Governments Road Fund, leaving the State Road Fund with a 41.7% share of the tax.  In FY92 the State Road Fund’s share of the tax was redirected to the General Fund.

 

SN/ar