The Interim Transportation Infrastructure Revenue Subcommittee meeting held on June 5, 2025, focused on the financial health and future projections of New Mexico's state road fund. Key discussions highlighted the steady growth of the fund over the past 11 years, which has increased by nearly $200 million. However, concerns were raised regarding the stagnation of gasoline tax revenues, which have remained relatively unchanged at approximately $110 million since 2014.

Committee members discussed the significant rise in road construction costs, which have more than tripled since 2003. The Federal Highway Administration's index now estimates construction costs at over $3.1 million per mile, a stark contrast to the $1 million per mile figure from two decades ago. This increase poses challenges for future funding, especially as inflation continues to impact the budget.

The meeting also addressed the motor vehicle excise tax, which was recently raised from 3% to 4%, with plans to increase it further. This tax shift from the general fund to the road fund aims to bolster revenue streams, but committee members noted that the fixed nature of the gasoline tax, unchanged since 1992, does not account for inflation, effectively reducing its value over time.

Economist Michael Morrison presented forecasts indicating a potential 15% decrease in funding by 2050, compounded by a projected 160% increase in road construction costs. The committee acknowledged that while commercial vehicle revenues, such as the weight distance tax, are becoming more significant, the overall financial outlook remains concerning.

The meeting concluded with discussions on potential solutions, including additional registration fees for electric vehicles and exploring road user charges, as New Mexico prepares for a future with increasing electric vehicle adoption and changing transportation needs. The subcommittee emphasized the importance of addressing these financial challenges to ensure the sustainability of the state's transportation infrastructure.