Remember when the state government in Oklahoma was flush with money from oil and gas revenue? Now New Mexico is in the same situation prompting one legislative leader to quip, “the future looks good for New Mexico.”
And it’s all because of the oil and gas development growing in Southeastern New Mexico where part of the Permian Basin has resulted in a flood of money for the state treasury. As in hundreds of millions of dollars more than projections. And you don’t hear legislators complaining about the “fossil fuel” industry or calling for its demise.
A recent report by the Albuquerque Journal stated that total state revenue collections were $273 million more than expected through April, prompting legislative leaders to approve a $663 million increase in spending in the current budget. Ironically, the legislature in New Mexico tends to lean Democratic and those who are often-times critical of the fossil fuel industry now are taking full advantage of the industry’s revenue.
And more revenue is on its way. New figures released this week by legislative and executive economists at a meeting in Red River of two legislative interim committees showed New Mexico could have an estimated $907 million in new money available in the coming budget year. Thanks to the oil production levels in the Permian Basin.
“The future looks good for New Mexico,” said Sen. Carlos Cisneros, D-Questa, during the meeting, according to the Albuquerque Journal.
Overall, the state is on track to spend more than $7 billion in year-over-year spending this budget year, while revenues are expected to reach an all-time high of nearly $8 billion for the 2021 budget year, which starts next July.
Click here to read entire story from Albuquerque Journal.