New Mexico could add $924 million in ‘new money’ because of oil price increases

Officials at last week’s meeting of New Mexico’s Legislative Finance Committee in Farmington said the state could see $924 million in “new money” in the next fiscal year because of rising prices of oil caused by the U.S.-Israeli war in Iran. According to KRQE-TV in Albuquerque, Wayne Propst, secretary of the Department of Finance and Administration, said Aug. 26, “It’s entirely possible that when you convene in January you could have a billion dollars in general fund total new money.”
Reports revealed the state’s recurring revenue increased from about $14 billion last year to $14.5 billion in the current fiscal year and nearly $14.8 billion in the next fiscal year. Lawmakers have expanded the number of trust funds that receive revenue from oil and gas taxes and federal mineral leasing, including the early childhood trust fund.
New Mexico has increased oil and gas production in recent years – primarily in Eddy, Lea and Dona Ana counties – to become the second largest producer behind Texas.