Later this month, the consensus revenue estimate will be released, providing the basis for the state’s budget when lawmakers meet next month in Santa Fe. And the expectation is a continuation of the oil-fueled revenue boom, leading to another record budget.
The estimate is prepared twice a year. The August report predicted lawmakers will have $659.6 million in “new money” to add to the record $13.4 billion budget for the current fiscal year. It’s a dramatic reversal from the days of the Richardson administration, when lawmakers were forced to claw back money from local school districts to avoid budget deficits, which are now allowed under state law.
And it all comes from a single source. Oil and natural gas production in New Mexico has grown by 381 percent since the year 2017, making our state the second-largest oil producer in the nation, behind only Texas. In the last year, New Mexico was responsible for nearly 50 percent of oil production growth for the entire nation…