The Doña Ana County Board of Commissioners approved today a resolution that would put safeguards on tax money that would help fund Spaceport America.
On a vote of 4-1, with Oscar Vasquez Butler dissenting, the commission approved the resolution and an amendment stating the county’s intent to use 25 percent of the tax money for educational purposes.
State law allows the county to keep as much as 25 percent of the tax money for spaceport-related activities. Commissioner Bill McCamley has proposed using the money to fund programs in engineering and business that will focus on the aerospace industry at high schools in all three county school districts. The language in the resolution isn’t that specific, but does state that the county intends to use it for education.
The resolution puts some protection on public money that would be spent if voters approve a 1/4 percent gross receipts tax increase on April 3 to help fund the spaceport.
The resolution declares the intent of the county to rescind the tax if certain conditions aren’t met by Dec. 31, 2008: that the state obtains a Federal Aviation Administration license and the acceptance of the accompanying environmental impact statement, that Virgin Galactic signs a lease to use the facility, and that the cost of the Virgin Galactic facility does not exceed $225 million.
The wording is even stronger than that of conditions the Legislature placed in 2006 on more than $100 million it appropriated for the spaceport. The state’s conditions specify that an “anchor tenant,” not necessary Virgin Galactic, must sign a lease, and that that a true estimate of the cost, not the actual cost, cannot exceed $225 million.
Should the conditions not be met, the county will have already collected a little more than $6 million from the tax. The resolution declares the county’s intent to seek legislation, if that happens, allowing the money already collected to be spent on other expenses.
In addition, the bonds the tax would repay won’t be sold until the conditions are met, New Mexico Economic Development Department Secretary Rick Homans said, so the county won’t be stuck with the debt if it rescinds the tax.