NEWS

No sense to flush investment in spaceport

Las Cruces Sun-News Editorial Board
Editorial roundup

It is disappointing but not surprising that state lawmakers have cut the funding requested by Spaceport America for operations in the upcoming fiscal year by more than half, trimming it down to $1 million. Lots of people supporting worthy causes will be disappointed this year when the final budget come out.

A steep decline in oil and gas prices has resulted in a corresponding decline in state tax collections. Lawmakers came into the session two weeks ago anticipating $232 million in revenue this year above what was expended in the budget passed last year. That so-called “new” revenue is now all but gone, and there is real concern that revenue may not be enough to support even a flat budget.

We assume that spaceport executives are working the halls of the Roundhouse seeking to protect the money they still have, while at the same time reworking their budget to compensate for the lack of expected revenue. We can’t say for certain, however, because our questions to the Spaceport Authority last week were met with a “no comment.”

That’s not encouraging. These folks need to be making their case to anybody who will listen, not hiding from the press.

All of this is happening at the same time Sen. Lee Cotter, R-Las Cruces, has introduced legislation that would prohibit the spaceport from using excess revenue from the local tax passed in Doña Ana and Sierra counties for operations. If that bill is successful, taxpayers will enjoy the benefit of paying off the bonds to a shuttered facility one year sooner.

This bill, combined with the reduction in revenue from the state, would be the end of the spaceport. And, the notion that Federal Express, or anybody else, would want to buy the spaceport for a transportation hub in the middle of the desert outside of Upham with only one developed road in and out seems ludicrous on its face.

Cotter is correct when he says voters weren’t told before the election that the tax would be used to fund operations. It was never anticipated at that time. Virgin Galactic was supposed to be flying by now, and wealthy adventurers from around the world were supposed to be making their way to southern New Mexico for a once-in-a-lifetime experience.

That hasn’t happened yet. Development of the Virgin Galactic spacecraft suffered a tragic setback with a fatal crash in 2014. Testing has resumed, and it is hoped they will be ready to start by next year or in 2018. But it won’t happen at Spaceport America unless we can keep the facility open for the next couple of years.

Cotter said he was unhappy with the management of the spaceport. He claimed they were not fully transparent in obtaining the excess bond revenue for operations, and have not kept lawmakers fully informed of their dealings. Others in the Legislature have expressed similar concerns.

But it is important to remember we have a $220 million investment in this facility. It is an investment we believe can still pay benefits for the state in the future in bringing high-paying jobs to the spaceport and boosting local tourism.

We share frustrations over the wait for Virgin Galactic, as well as local issues such as the delay in getting a southern road built to the spaceport. But we believe it makes absolutely no sense to flush away that investment over concerns or frustrations with current management.