Serving the High Plains
Correspondent
The city of Tucumcari and Quay County last week submitted their Infrastructure Capital Improvement Plans (ICIP) to state authorities, but there are serious doubts about how many, if any, ICIP items will receive funding from state severance tax revenues, officials said.
County Commissioner Mike Cherry said the state’s current budget shortfall may mean no capital outlay funding through the state Legislature to fund ICIP projects.
County Manager Richard Primrose said the county can wait if some items do not receive state capital outlay funds.
Tucumcari City Manager Jared Langenegger said the city is taking a wait-and-see attitude.
If funding does not come through on some items, Langenegger said, the city can seek other money sources for some ICIP items.
Capital outlay funds do not come from general funds, state Rep. Dennis Roch, R-Logan, said. They come from severance tax funds, which are paid by businesses that extract materials from the ground, like gas and oil.
Since gas and oil production and revenues have fallen drastically over the past year, state government is seeing large reductions in revenue and is facing large cuts in spending in general fund and severance tax fund accounts.
The Albuquerque Journal noted this week that the state has spent its primary reserve fund, and may have to drain other accounts because oil and gas tax revenues have fallen far more than the state expected a year ago.
For the fiscal year that began in July, the Journal noted, the state is facing a $370 million tax revenue shortfall.
Gov. Susana Martinez is expected to call a special legislative session in September to deal with these urgent budget issues.
Roch said he hopes the special session is not needed, but he is not optimistic.
Roch also said, however, that he is hopeful some ICIP projects will receive funding, despite expected shortfalls in severance tax collections.
Usually, only a few ICIP projects receive funds from capital outlay allocations through the Legislature.
Cities and counties list their proposed projects in order of priority.
Local governments may ask for partial funding on projects, and accumulate requests until they collect the total amount needed.
Here are Tucumcari’s top 10 ICIP items with their total estimated costs: