Bond Question 3Bond (state borrowing)
Higher education capital bonds
Explain it like I'm 5
This lets the state borrow money to improve buildings and equipment at colleges, special schools, and tribal schools. It is like taking a large repair loan for several schools and paying it back over many years with property taxes.
Yes vote
The state may issue up to $230 million in general obligation bonds for capital improvements and acquisitions at higher education institutions, special schools, and tribal schools.
No vote
The state may not issue these bonds under this authorization.
The question to ask yourself
Are these education-facility needs worth hundreds of millions in statewide borrowing?
The case for
- Funds major repairs, buildings, and equipment for education institutions.
- Spreads the cost of facilities used for many years.
- Can support campuses and schools across different regions.
Backed by: University of New Mexico, GO Bonds for Education Committee
The case against
- It is the largest package and creates substantial long-term debt.
- Statewide taxpayers repay debt while benefits may concentrate at particular campuses.
- Borrowing locks in interest costs and limits future borrowing capacity.
Opposed by: New Mexico Business Coalition, Republican Party of New Mexico
- Money
- Up to $230 million in state borrowing, repaid through the existing statewide property tax for general obligation bonds; the per-household cost was not estimated in the sources we checked.
- Don't be misled
- A flat tax rate does not mean no cost, because it uses tax capacity for new debt instead of allowing the rate to fall.