Fri, Jan 29, 2016
Hopes Cash-Strapped State Will Cover Projected Delta Between Revenue And Expenses
Spaceport America has gone to the New Mexico legislature seeking a $2 million cash infusion to cover the difference between its revenue and expenses. But the state's lawmakers may not be in a position to grant the request.
The Albuquerque Journal reports that New Mexico depends on oil for a good portion of its tax revenue, and the recent steep slide in oil prices have put a squeeze on the amount of taxes collected by the state. For every dollar drop in the price of crude, the state loses about $10 million.
Governor Susana Martinez proposed approximately $462,000 in her $6.5 billion annual budget for Spaceport America, which is in line with previous years. But her budget request also included $2.35 billion for "operating costs due to a shortfall in revenue from other sources."
New Mexico Spaceport Authority Executive Director Christine Anderson told the paper that she expects Spaceport America to see revenue of about $4 million this year ... but its break-even point is north of $6 million. Revenue is currently from its $1 million lease with Virgin Galactic as well as contracts with SpaceX and other companies.
Virgin Galactic's lease is slated to rise to $3 million in 2018 whether or not the company is flying tourists and other missions into space. It is also marketing itself as an event location, and is seeking a liquor license from the state for that purpose.
One legislator, Sen. Lee Cotter, R-Las Cruces, has reintroduced a bill he has put forward in the past several years to limit the spaceport's access to bond funding. The bill would restrict the Spaceport Authority's ability to issue bonds and place restrictions on the use of "certain proceeds" that are collected from local tax receipts. It would also require voter approval of any new bonds. Passage of the bill would be "horrendously awful" for Spaceport America, Anderson told the paper.
Anderson said that she has stretched the Spaceport's budget as thin as it will go, though she continues to look for cost-saving measures. But "we are going to need a little more help."
(Images from file)
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