A House committee on Tuesday voted to advance House Bill 475, which would create a transportation trust fund in New Mexico and begin it with an initial general fund contribution of $400 million, sponsor Representative Brown said.

Economist Clinton Turner, testifying for the Legislative Council Service, described the bill as a long-term revenue vehicle modeled in part on the Early Childhood Education and Care Trust Fund. “So what this would do is create a transportation trust fund in New Mexico,” Turner said, and explained the bill’s design, including a limit on annual distributions to 5% of the fund’s three-year rolling average.

The bill would also allow the trust fund to be used as matching money for federal grants. Ricky Serna, secretary of the Department of Transportation, told the committee the matching approach would help leverage federal funds. “If in one year it would distribute $15,000,000 on a 20% match grant, that could support a $75,000,000 project,” Serna said.

Turner and Representative Brown described additional possible revenue sources for the fund, including a small, calculated share of gross receipts from electricity sales to capture revenue related to electric vehicle charging as a complement to declining motor-fuel revenue.

Construction and contractor groups supported the measure. Mike Sandoval of the Associated Contractors of New Mexico and Franklin Garcia of the Asphalt Pavement Association each said they backed the bill as a means to provide recurring transportation revenue.

Members discussed capitalization options and timing. Representative Lundstrom and others suggested a range of approaches — including using nonrecurring appropriations or reallocating certain tax distributions — to provide an initial principal. The Department of Transportation cautioned that moving recurring distributions would affect other recurring expenditures.

The committee gave HB 475 a due-pass recommendation (motion offered by Representative Lundstrom, seconded by Representative Borrego). The committee chair said the bill advanced but noted sponsors would need to continue work on language and funding details as it moves to other committees.