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Governor: State budget could defray rail costs
Richardson also vows to seek federal aid for commuter system

Barry Massey | The Associated Press
Posted: Monday, October 15, 2007
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Gov. Bill Richardson wants to pay for operations of a commuter rail system out of the state's budget, and he'll also seek new federal money for it.

The state must find a funding source for the Rail Runner commuter train service because federal money, which covers most of the operating expenses, will disappear in 2009.

Last month, Richardson shot down one possible funding option. He said he opposed a gross receipts tax levy that could be imposed by a regional transit district covering Santa Fe, Bernalillo, Sandoval and Valencia counties. Such a levy would have required approval by local voters.

Richardson didn't offer details of his proposal, but said Monday at a presidential campaign event in Santa Fe that he would recommend that commuter rail operating expenses be paid out of the state's budget. In addition, he said he would apply for new federal aid.

"I'm going to continue to seek federal funds. I think with a Democratic Congress we'll have a better shot, and if I am president, I'll put it in the budget myself," Richardson said.

The governor makes budget recommendations to the Legislature, which approves a spending plan for the state and sends the budget measure to the governor to be signed.

Currently, the state has a main operating budget of $5.6 billion for public education and general government operations in the current fiscal year, which runs through June. The Legislature convenes in January and will work on a budget for the 2009 fiscal year, which runs from July through June 2009.

The Transportation Department, which is responsible for commuter rail, is not financed out of the state's main budget account. The transportation system is funded with earmarked revenues such as taxes on gasoline and diesel, motor vehicle registration fees and a weight distance tax on truckers.

The state is almost a half-billion dollars short of what's needed for highway and transportation projects approved four years ago. The growth of revenues for the state's highway system haven't kept pace with rising costs. Construction costs have skyrocketed, and the state is receiving less money from the federal government than had been expected.

The commuter train, which runs between Belen and Bernalillo, costs almost $10 million a year. About $8 million in federal money goes for the commuter rail, but that ends in 2009. Other money comes from fees paid by the train's riders and by BNSF Railway for use of state-owned track.

Operating costs of the train are projected to increase to $20 million a year after service is extended to Santa Fe. Construction has started on the $250 million extension, and the project is scheduled to be completed by the end of 2008.


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