SW New Mexico News

A recent editorial from Paul Gessing, president of the Rio Grande Foundation, a New Mexico-based think tank, calls into question how much Spaceport America is fulfilling its economic promises for the state.

The opinion piece that was posted by KRWG Public Media cites a claim from a study by the consulting firm Moss Adams. Going by that study, New Mexico has been benefiting economically from Virgin Galactic’s spaceport since 2013.

Gessing countered the claims by Moss Adams, turning to a brief created by a policy analyst, Daniel Seymour, who is employed at the Rio Grande Foundation.

Based on that report, the costs to New Mexico taxpayers of having the nation’s first commercial spaceport have reached $275 million, exceeding original projections by $50 million.

The Moss Adams report, in contrast, states from the start that, “New Mexico’s investment in Spaceport America has already achieved a positive return on investment.”

The report forecasts, “$964 million in direct, indirect and induced economic impact from FY 2016 through FY 2024.”

The report also states that the spaceport has already led to the creation of 150 jobs “in the space industry,” and it is projected to create another 516 jobs by 2029.

Yet, early in his analysis of the Moss Adams report, Seymour said that the Moss Adams report was commissioned by Virgin Galactic. He also notes that announcements about upcoming space flights – such as the promoted first commercial flight slated for this year – tends to coincide with the time period prior to a new state legislative session.

Seymour goes on to note that while audited financial records for Spaceport America show $54.3 million in direct income for the state over the past 12 years, the project itself has cost $275 million in taxpayer dollars.

The $54.3 million Seymour discusses in the report includes various outlays by the company in New Mexico, such as money spent on, “offices, warehouses, employee relocation; film shoots, the SA Cup, hotel rooms and meals, tourism, and all other spending attributable to the Spaceport.”