Because of surging oil and gas production, inflation and wage growth, government officials in New Mexico said Monday an estimated $3.6 billion in “new money” – the difference between forecasted revenue and current spending – will be available for the legislature for the next fiscal year that begins in July 2023. Economists said about two-thirds of the projected revenue growth is expected to come from revenue derived from the oil and gas industry. Oil production in New Mexico increased to a record 531.4 million barrels in fiscal year 2022 – up 30 percent from 2021.
Revenue estimates released at a hearing Monday of the legislative finance committee at the state capitol were $10.8 billion for 2023 (up from $9.8 billion in August) and $12 billion for 2024 (up from $10.9 billion in August). Gov. Michelle Lujan Grisham and legislature will release proposed budgets, and lawmakers will approve a budget before the end of the 60-day session that begins Jan. 17, 2023.