Sen. John McCain’s proposed gas-tax holiday would cost New Mexico $66 million in federal highway funds, yet save drivers less than $30 apiece, a national construction trade group says.





The presumptive Republican presidential candidate set out the plan Tuesday asking Congress to suspend federal highway gas and diesel taxes from Memorial Day to Labor Day, calling it an “immediate economic stimulus.” The tax break would amount to 18.4 cents a gallon for gasoline and 24.4 cents a gallon for diesel.

 

The idea didn’t get much traction off the line, with skeptics calling it “smart politics, stupid policy” and a potential “clunker.”



By Wednesday, the opposition machinery started rolling, including this assessment by the American Road and Transportation Builders Association: “In fact, this proposal would have severe negative economic impacts.”



McCain’s plan would eliminate some $9 billion from the pot of funds available for federal highway and other transportation spending, the group says, saving the average consumer $28 while threatening the jobs of more than 310,000 workers.



In New Mexico, the association estimates the foregone federal highway revenues at $66.3 million.



State Department of Transportation spokesman S.U. Mahesh said the funding cut would come at a time of shrinking transportation budgets. The federal government in recent years has reduced actual funding from promised levels, he said. “Just about every state is feeling the pain in terms of constructing and maintaining roads,” he added.

 

The political fallout of McCain’s proposal in New Mexico isn’t clear, but tensions between lawmakers and Gov. Bill Richardson over state transportation spending priorities already are running high. Some say roads are being ignored in order to pay for the Rail Runner Express commuter train, one of Richardson’s pet projects.