Deteriorating roads in New Mexico are costing drivers an estimated $3.6 billion annually, according to the New Mexico Department of Transportation (NMDOT). The department has identified a total of $5.6 billion in unfunded transportation needs across the state.
On Wednesday, NMDOT is scheduled to present a request for $487 million in nonrecurring funds for fiscal year 2027 to the Legislative Finance Committee. The department attributes this funding gap to declining revenues from fuel taxes, rising construction costs, and evolving needs within the transportation sector.
The proposed operating budget for NMDOT in fiscal year 2027 stands at $1.3 billion, which represents a decrease of $29.9 million compared to the current fiscal year. As with previous years, the operating budget does not draw from the state general fund.
“This request is about maintaining our commitment to New Mexico communities,” said NMDOT Secretary Ricky Serna. “Every dollar invested in our roads, bridges and rural airports supports economic growth, improves safety and connects families to jobs, schools and essential services.”
Data provided by NMDOT shows that the proportion of state roads rated as being in acceptable condition has declined from 75 percent in 2011 to 69 percent in 2023.
The $487 million requested includes allocations such as $420 million for construction, maintenance, and federal matching funds; $25 million for rural air service; $12 million for roadway beautification; $10 million each for heavy equipment and vehicle fleet replacement, electric vehicle charging infrastructure, and traffic safety improvements.
Looking ahead, State Road Fund revenues are projected to fall by 13 percent by 2050 due to increasing numbers of fuel-efficient and electric vehicles reducing gas tax collections. Over the same period, construction costs are expected to rise by 136 percent.
To address these challenges, NMDOT and the Governor plan to reintroduce House Bill 145 from the 2025 legislative session. This bill would give the Transportation Commission bonding authority up to $1.5 billion and could generate more than $70 million per year in new recurring revenue for the Road Fund. Proceeds from these bonds would be designated exclusively for projects included in the State Transportation Improvement Plan, with regular reporting on funded work required from the department.
