NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Internet/Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

State Highway and Transportation Department

SUMMARY

Synopsis of Bill

The bill gives the State Highway Commission authority to sell state highway bonds in an amount not to exceed $143 million. The proceeds from the sale of the bonds are appropriated to the State Highway and Transportation Department for work on US87 between Raton and Clayton.

Significant Issues

The bill provides that the authority to sell bonds is contingent upon appropriation of all or a portion of the 4 3/10 cents per gallon federal excise tax on gasoline to the federal highway trust fund for highway infrastructure, with New Mexico receive additional obligation authority from the fund.

FISCAL IMPLICATIONS

The bill would generate $143 million in revenue from proceeds from the sale of bonds based upon a contingency in federal funding levels. The bill would then appropriate these funds to conduct construction projects on US64/87.

TECHNICAL ISSUES

The highway referred to in the bill, "US 87" is technically referred to as US64/87.

RAE/njw