The state has increased spending at a quick pace during Gov. Bill Richardson’s administration, and many protesting lawmakers warned that it was only a matter of time before New Mexicans started tangibly feeling the effects.
It’s happening. As reported today by the Albuquerque Journal, the state has indefinitely postponed $500 million worth of high-priority road projects, including, to save $55 million, 20 miles of improvements to Interstate 10 between
The reason? The state has no money to pay for the roadwork. Construction projects that were deemed necessary now have to be put on hold or cancelled.
There are a number of factors contributing to the shortfall. One is the fact that construction costs have risen. Transportation Secretary Rhonda Faught said inflation and a lack of federal funds are also to blame. She disputes any assertion that the commuter rail which, when complete, will run from Belen to
Some legislators are skeptical, and with good reason: The program that was to fund the roads and the commuter rail, called GRIP I, for Gov. Richardson’s Investment Partnership, began as a $1.9 billion project but has risen to a projected $2.7 billion. Legislators were originally told the commuter rail would cost about a fourth of the $400 million that has been spent.
There’s more that must be spent on the Rail Runner. Federal funding for its operation is going to run out in 2009, and the state is going to have to come up with an estimated $25 million per year. The governor has ruled out a tax increase, but hasn’t provided any other ideas.
Though it’s not as much of an issue at this point, I’d be remiss if I didn’t mention Spaceport America. The state has already given a little more than $100 million to the project, and the Legislature won’t likely give any more even if construction costs do rise. So, though some think that $100 million could have been spent elsewhere, it was budgeted separate from the road money and for a project that hasn’t gone over budget – at least at this point.
At least the spaceport is a project with the potential, if it’s successful, to pay for itself and create economic development. The Rail Runner, which has cost the state four times as much as the spaceport, is a project the state hasn’t yet figured out how to fully fund that will never pay for itself, so it’s always going to be a drain, just like road maintenance, on the budget.
It’s not that there’s anything wrong with having a commuter rail. But even many train enthusiasts were surprised that the state would spend so much money on a commuter rail for a sometimes sparsely populated area like north-central
The commuter rail, however, may only be a symptom of a greater problem. The state has spent at a quick pace during
Perhaps the state’s spending has moved, in the last five years, at a pace that was conducive to building a résumé for a presidential candidate instead of at a speed that was wise for the economic health of the state. We did, after all, replace Governor “No” with Governor “Go.”
Perhaps it’s time to return to a middle ground, a balance between no spending and too much spending, so the state can find a way to fund its critical road projects and keep its economic health.