Oil industry in New Mexico contributes to expected $797 million surplus

State government income is expected to outpace spending by $797 million for the coming fiscal year in New Mexico, according to the Associated Press. Economists from three state agencies and the legislative budget office presented a forecast of state revenue this week before the legislature meets Jan. 21 for a 30-day session. Revenues are expected to exceed the current annual general fund spending of $7 billion by 11 percent to produce the $797 million surplus. Gov. Michelle Lujan Grisham said, “We have tremendous opportunity to invest in our children, our schools and our economy.”
Record-setting oil production in southeastern New Mexico provides a sustained financial boost to government income from taxes, fees and royalties. New Mexico’s oil industry is expected to produce 350 million barrels during the current fiscal year – up from 300 million barrels the previous year.