Summary:

 House Bill 3 (HB 3) makes general appropriations related to the Department of Transportation and authorizes expenditures. 

Legislation Overview:

 House Bill 3 (HB 3) enacts the "Department of Transportation Appropriation Act of 2025" (Act). Definitions are provided for the following:

•	"agency" means an office, department, agency, institution, board, bureau, commission, court, district attorney, council or committee of state government; 
•	"explanatory" means information that can help users to understand reported performance measures and to evaluate the significance of underlying factors that may have affected the reported information; 
•	"federal funds" means any payments by the United States government to state government or agencies except those payments made in accordance with the federal Mineral Leasing Act; 
•	"general fund" means that fund created by Section 6-4-2 NMSA 1978 and includes federal Mineral Leasing Act receipts and those payments made in accordance with the federal block grant and the federal Workforce Investment Act of 1998 but excludes the general fund operating reserve, the appropriation contingency fund, the tax stabilization reserve and any other fund, reserve or account from which general appropriations are restricted by law; 
•	"interagency transfers" means revenue, other than internal service funds, legally transferred from one agency to another; 
•	"internal service funds" means: (1) revenue transferred to an agency for the financing of goods or services to another agency on a cost-reimbursement basis; and (2) balances in agency internal service fund accounts appropriated by the Act;
•	"other state funds" means: (1) nonreverting balances in agency accounts, other than in internal service fund accounts, appropriated by the Act; (2) all revenue available to agencies from sources other than the General Fund, internal service fund accounts, interagency transfers and federal funds; and (3) all revenue, the use of which is restricted by statute or agreement; 
•	"outcome" means the measure of the actual impact or public benefit of a program; 
•	"output" means the measure of the volume of work completed or the level of actual services or products delivered by a program; 
•	"performance measure" means a quantitative or qualitative indicator used to assess a program; 
•	"quality" means the measure of the quality of a good or service produced and is often an indicator of the timeliness, reliability or safety of services or products produced by a program; 
•	"revenue" means all money received by an agency from sources external to that agency; and
•	"target" means the expected level of performance of a program's performance measures. 

The purpose of the Project Design and Construction Program as set for in the Act is to provide improvements and additions to the state's highway infrastructure. These improvements include those activities directly related to highway planning, design and construction necessary for a complete system of highways in the state. Appropriations are as follows:

Personal Services and Employee Benefits - $36,077.60
Contractual Services - $583,455.70
Other - $199,179.20

The purpose of the Highway Operations Program is to provide and maintain improvements to the  state's highway infrastructure. The maintenance and improvements include those activities directly related to preserving roadway integrity and maintaining open highway access throughout the state system. Some examples include bridge maintenance and inspection, snow removal, chip sealing, erosion repair, right-of-way mowing and litter pick up, among numerous other activities. Appropriations are as follows:

Personal Services and Employee Benefits - $148,346.50
Contractual Services - $72,451.10
Other - $114,992.30

The purpose of program support is to provide management and administration of financial and human resources, custody and maintenance of information and property and the management of construction and maintenance projects. Appropriations are as follows: 

Personal Services and Employee Benefits - $32,530.40
Contractual Services - $33,166.70
Other - $15,650.20

The purpose of the modal program is to provide federal grants management and oversight of programs with dedicated revenues, including transit and rail, traffic safety and aviation. Appropriations are as follows:

Personal Services and Employee Benefits - $15,362.20
Contractual Services - $31,028.30
Other - $52,056.10

The internal services funds/interagency transfers appropriations to the modal program of the department of transportation include ten million five hundred thousand dollars ($10,500,000) from the weight distance tax identification permit fund.
 

Current Law:

 There is not currently a Department of Transportation Appropriation Act of 2025. 

Amendments:

 Amended February 13, 2025 in HTPWC

HTPWCa/HB 3: The House Transportation, Public Works and Capital Improvements Committee amends House Bill 3 as follows:

1. On page 3, line 6 through page 5, line 14, strike Section 4 in its entirety and insert in lieu thereof:

Fiscal Year 2026 appropriations.-- Department of Transportation: 

(1)	Project design and construction: The purpose of the project design and construction program is to provide improvements and additions to the state's highway infrastructure to serve the interest of the general public. These improvements include those activities directly related to highway planning, design and construction necessary for a complete system of highways in the state. 

Personal services and employee benefits: 37,089.70

Contractual services: 3,294.60

Other: 1,511.10

Plan, study, design, right-of-way acquisition, road construction and rehabilitation: 574,268.70

Transportation project fund: 64,780

Local government road fund: 28,000.00

Debt service: 110,798.80

Performance measures:

a.	Outcome: percent of projects in production let to bid as scheduled: 75%

b.	Quality: percent of final cost-over-bid amount, less gross receipts tax on highway construction projects: 3%

c.	Outcome: percent of projects completed according to schedule: 88%

(2)	Highway operations

The highway operations program is responsible for maintaining and providing improvements to the state’s highway infrastructure that serve the interest of the general public. Maintenance and improvements include those activities directly related to preserving roadway integrity and maintaining open highway access throughout the state system. Some examples include bridge maintenance and inspection, snow removal, chip sealing, erosion repair, right-of-way mowing and litter pick up, among numerous other activities. 

Appropriations: 

Personal services and employee benefits: 160,595.40

Contractual services: 1,703.90 

Other: 43,318.30

 Roadway maintenance contracts: 64,706.00

Roadway maintenance supplies and materials: 37,719.80

Equipment purchases: 10,043.30

Performance measures: 

(a) Output: Number of statewide pavement lane miles preserved 

(b) Outcome: Percent of interstate lane miles rated fair or better: 91% 

(c) Outcome: Number of combined systemwide lane miles in poor condition: 4,000 

(d) Outcome: Percent of bridges in fair, or better, condition based on deck area: 95%

(3) Program support

The purpose of program support is to provide management and administration of financial and human resources, custody and maintenance of information and property and the management of construction and maintenance projects. 

Appropriations: 

Personal services and employee benefits: 4 34,658.40

Contractual services: 4,089.10

Other: 17,790.00

Performance measures: 

(a) Explanatory: Vacancy rate of all programs 

(4) Modal: 

The purpose of the modal program is to provide federal grants management and oversight of programs with dedicated revenues, including transit and rail, traffic safety and aviation.

Appropriations: 

Personal services and employee benefits: 17,164.00

Contractual services: 39,772.30

Other: 9,776.20

Air service assistance program:  9,347.60

Transit grants: 33,226.30

The internal service funds/interagency transfer appropriations to the modal program of the New Mexico Department of Transportation (DOT) include ten million five hundred thousand dollars ($10,500,000) from the weight distance tax identification permit fund. 

Performance measures: 

(a) Outcome: Number of traffic fatalities:  400 

(b) Outcome: Number of alcohol-related traffic fatalities: 140

2. On page 5, between lines 14 and 15, insert the following new sections: 

SECTION 5. FISCAL YEAR 2025 BUDGET ADJUSTMENT AUTHORITY.--The DOT may request budget increases up to thirty-five million dollars ($35,000,000) from other state funds to meet federal matching requirements for debt services and related costs and for intergovernmental agreements, lawsuits and construction- and maintenance-related costs. 

SECTION 6. FISCAL YEAR 2026 BUDGET ADJUSTMENT AUTHORITY.--The DOT may request transfers up to ten million dollars ($10,000,000) within or between the project design and construction program, the highway operations program, the business support program and the modal program for costs related to engineering, construction, maintenance services and grant agreements, may request program transfers into the personnel services and employee benefits category for up to twelve million dollars ($12,000,000) and may request budget increases up to eighty-five million dollars ($85,000,000) from other state funds and fund balances to meet federal matching requirements and for debt services and related costs, intergovernmental agreements, lawsuits and construction and maintenance related costs.