On the surface, the American Recovery and Reinvestment Act looks like it could provide a $1 billion-plus financial deluge into New Mexico — but in reality, the funds will probably be soaked up faster than a 1-inch snowfall in Las Cruces.

Funds included in the act, which is still being hashed out in Congress, could help the state improve schools and roads and stabilize jobs in some technology sectors. But with budget shortfalls for state and city governments and hard times in the private sector, the money is anything but a pure boon for New Mexico, said Sen. Jeff Bingaman, D-N.M.

"The idea behind it is that since the private sector is contracting, the public sector needs to step up and stimulate economic activities," Bingaman said.

The House passed the measure Wednesday by a vote of 244-188, and it now goes to the Senate, which already has proposed changes.

The funding includes assistance for schools at several levels, tax credits for renewable-energy technology companies, and funding for infrastructure improvement, among other things, Bingaman said.

"The bill covers all different areas of government activity and tries to parse out funding in several areas," he said.

One aspect he's working on is to increase the amount that banks can invest in municipal bonds. Right now, the cap is $10 million, but Bingaman wants to increase the amount to $30 million, he said.

"That could help municipalities, and these are secure investments, not subprime loans by any means," Bingaman said.

Some money could also be spent on alternative energy and other research in the Department of Energy Complex, although how that might trickle down to New Mexico remains uncertain, Bingaman said.

"I think there is significant funding for research and development generally for DOE," Bingaman said. "We can't tell yet how much of that will end up at our labs, though, because that will end up in DOE competitions."

The act could also bring some tax relief to working New Mexicans, with 684,000 residents qualifying for the Making Work Pay tax credit, which gives a $500 to $1,000 credit to single workers and married couples making up to $100,000 or $200,000 a year, said Rep. Ben Ray Luján, a Santa Fe Democrat.

"This is a bold initiative, and it's action that we need," Luján said. "These are tough economic times."

Still, even though the extra money is good, in many cases it's already spent.

The state Department of Transportation, for instance, could use $628 million to finish 29 key projects, said spokesman S.U. Mahesh.

"Because of inflation, there's been a shortfall in funding," Mahesh said.

Preliminary estimates from the act suggest the state will get $334 million for transportation projects, with $281 million of that designated for work on highways and bridges.

Some of the projects Department of Transportation officials want to finish include several improvements to U.S. 84/285 and an expansion of Interstate 25 from Albuquerque to Bernalillo, Mahesh said.

"Every project is important," Mahesh said. "Whatever money we get, we have projects ready to go. We need more than $334 million, but whatever we get, we're ready to use."

State school officials, meanwhile, are "cautiously optimistic" about getting an estimated $329 million. Much of the money would go to Title I, a federally funded program that serves poor students, and to the Individuals with Disabilities Act, which serves special-education students.

What would really help the state, Secretary of Education Veronica Garcia said, is money that could go into the General Fund and in turn into the school funding formula. That money could help bridge any shortfall from the Legislature.

Garcia said the state will have to be careful, too, about using one-time funds for recurring expenses, which could lead to having to make cuts later.

In Santa Fe, schools could get about $11 million, but officials said they have not had a chance to examine how they might use that money, which includes $3 million for construction.

Santa Fe also would like to soak up some of the funds for community development block grants.

The mayor's wish list includes $10 million for redevelopment on Airport Road and the creation of a regional high-speed broadband loop, $33 million for green job projects, $5 million for transit equipment, $5.5 million for highway infrastructure, $2.6 million for airport technology, $20 million for water and wastewater projects, including the Buckman Direct Diversion, $4 million for public housing modernization and $688,100 for public safety jobs and technology.

Some city councilors are so confident in an infusion of money from the feds that they stalled public debate on a water-rate increase.

Overall, at least New Mexico seems to be in better shape than many other states after big hits to financial institutions and the subprime housing market, but that's not to say the state doesn't still need help, Bingaman said.

"I think we have not seen the same dramatic increase in unemployment in New Mexico that we've seen in other states," Bingaman said.

Staff writers John Sena and Julie Ann Grimm contributed to this report.

Contact Sue Vorenberg at svorenberg@sfnewmexican.com.

AMERICAN RECOVERY AND REINVESTMENT ACT: NEW MEXICO NUMBERS

Totals for FY2009 and FY2010 (from the Ways and Means, Appropriations, and Energy and Commerce Committees):

Transportation: $334 million

K-12 education: $329 million (includes $11 million for Santa Fe Public Schools)

Higher ed: $40 million

Early childhood: $24 million

Community services: $6 million

Seniors: $7 million

Health care: $5 million

State fiscal stabilization: $419 million