(The following appeared on the Las Cruces Sun-News website on March 14, 2011.)
SANTA FE, N.M. — The state Senate on Monday night voted to eliminate locomotive fuel taxes for Union Pacific, provided that it moves a rail center from El Paso to Santa Teresa.
The bill carried 37-4, though many Democrats said they were skeptical about whether the deal was good for New Mexico taxpayers.
Union Pacific executives say the company will invest $418 million in the Santa Teresa project, employ about 3,000 people during construction and create 600 full-time jobs.
But Sen. Stephen Fischmann, D-Mesilla Park, said New Mexico is overpaying to land the company, which is moving only about 15 miles from its existing hub and will continue to have many employees who live in El Paso.
He said the fuel tax reduction would cost New Mexico $8 million a year. Fischmann sponsored an unsuccessful amendment to reduce the tax break from 100 percent to 66 percent.
The full story is on the Las Cruces Sun-News website.