Capital Projects Details

Each year, the Legislature introduces a list of projects to fund for local governments/communities located throughout the State of New Mexico. A project can be funded with severance tax bonds, general obligations bonds, or State General Fund monies.

The State issues general obligation bonds to provide funds for the acquisition, construction, and renovation of major capital facilities for local governments and state agencies and higher education institutions as authorized by the Legislature. General obligation bonds are direct obligations and pledge the full faith and credit of the State. Funding for the payment of the debt service of the general obligation bonds is provided through the collection of property taxes levied by the local governments receiving the funding for capital spending.

Severance tax bonds are used to fund the capital needs of state agencies, local governments, Indian tribes, and public and higher education institutions as authorized by the Legislature. Funding for the payment of the debt service of the severance tax bonds is provided through the collection of severance taxes levied on the mining and production of various natural resources. The severance tax bonds are secured by the levied taxes.

The Capital Projects Details page provides the project name and the amount appropriated to the project for the current year. Each project’s funding source is provided, as well as the county receiving the benefits of the project. Generally, the funding for a project is appropriated to an oversight department of the State before the local government/community receives the appropriation. The local government/community is required to enter into a grant agreement with the State prior to spending the appropriation. The appropriation is established on a reimbursement basis, which requires the local government to spend their own money first and request reimbursement from the State. In addition, each appropriation has an expiration date. Normally, a project’s funding is valid from two to four years; however, the Legislature may reauthorize the funding for a longer period of time. The Legislature may also reauthorize amounts that were not spent on one project for another project. Each project’s page provides the fiscal year the project was appropriated, expiration date, and appropriation ID and reference within the appropriate Bond Act.

To view the actual amounts expended for the projects, please visit the Department of Finance and Administration State Budget Division – Capital Outlay Bureau’s website http://www.nmdfa.state.nm.us/Capital_Outlay_Bureau.aspx and click on the Capital Project Appropriation Search link. You can enter any of the information found on the project screen to obtain additional details on the project.