HOUSE MEMORIAL 16

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

David M. Gallegos

A MEMORIAL

REQUESTING THE GOVERNOR TO VETO ALL CAPITAL APPROPRIATIONS FOR COUNTIES THAT HAVE BANNED OR SEVERELY RESTRICTED OIL AND GAS EXPLORATION AND REPRIORITIZE AN EQUAL AMOUNT OF MONEY FOR HIGHWAY IMPROVEMENTS.

     WHEREAS, the oil and gas industry in New Mexico contributes more than one billion dollars ($1,000,000,000) to the state general fund and more than two billion two hundred fifty million dollars ($2,250,000,000) to all state funds, including those that finance roads, schools and public safety; and

     WHEREAS, about fifteen thousand New Mexicans are directly employed by the oil and gas industry in New Mexico with an average annual salary of about seventy thousand dollars ($70,000); and

     WHEREAS, an estimated thirteen thousand to seventeen thousand additional indirect service-sector jobs are created by the oil and gas industry in New Mexico; and

     WHEREAS, one-third of New Mexico's counties currently produce oil or natural gas, and more is under the ground in other counties; and

     WHEREAS, the oil and gas industry in New Mexico is the state's leading educational supporter and provides over ninety percent of all school capital investment through the permanent school fund; and

     WHEREAS, severance tax revenues from oil and gas are used in the capital appropriations every year to finance construction or acquisition of:

          A. community centers;

          B. senior centers;

          C. fire stations;

          D. libraries;

          E. courthouses;

          F. fire engines;

          G. roads and highways;

          H. park improvements or equipment;

          I. water, and wastewater systems;

          J. acequia improvements; and

          K. schools and universities; and

     WHEREAS, total severance tax bonding capacity for fiscal year 2016 is estimated to be about five hundred million dollars ($500,000,000); and

     WHEREAS, one hundred eighty-two million two hundred thirty-seven thousand dollars ($182,237,000) was authorized in the capital outlay bill for fiscal year 2015;

     NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the governor be requested to veto all capital appropriations for counties that have banned or severely restricted oil and gas exploration and prioritize an equal amount of money for highway improvements statewide in subsequent executive branch capital requests; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the governor.

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