A Public Service of Santa Fe Community College
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

New Mexico State Revenues Continue To Rise

State economists present the latest revenue estimation numbers on Monday to the Revenue Stabilization and Tax Policy Committee.
State of New Mexico
via Zoom
State economists present the latest revenue estimation numbers on Monday to the Revenue Stabilization and Tax Policy Committee.

According to state economists, New Mexico’s recurring revenue estimatescontinue to soar, outpacing most of the rest of the nation.

During the last report back in December, the estimate was 12.5% revenue growth which at the time was the largest estimated revenue growth in the country.  It turns out the growth was 20%. That means the state will have $3.5 billion in new money.

Legislative Finance Committee Chief Economist Ismael Torres told the Revenue Stabilization and Tax Policy Committee  most of that moneyis coming through oil and gas production’s rents and royalties.

“They are making up two-thirds of the revenue growth in FY24, $827 million coming from those two sources. It’s really important to know that after this year. We’re going to go back to more historical levels of revenue growth, about three to four-percent, ” he said. “It’s going to be an interesting challenge going into the session on how to use this sort of lottery jackpot winnings and smooth that out over several years so maybe you don’t have such up and down revenue spending.”

According to the report, while experts warned of a recession, the U.S. economy showed resilience, with real gross domestic product, growing 2.4 percent year-over-year in 2023. That was slowing from the 4 percent growth seen in 2022 but above expectations of a more abrupt drop.

    Other strong economic indicators, such as job growth, low unemployment, and strong consumer spending, suggest the Federal Reserve, despite implementing sharp increases in interest rates to curb inflation, may be on track to achieve a “soft landing,” where inflation cools without the economy tipping into recession.                         

Related Content
  • Higher-than-expected tax revenues in the United States are expected to make a dent in the federal deficit, according to early reports. According to The New York Times, corporate taxes, taxes on stock-market profits and taxes on executive bonuses are mostly responsible for the higher revenues.
  • Members of New Mexico Legislative Finance Committee on Monday heard something they haven’t in a while: New Mexico’s state budget picture is bright…and is…
  • A report released Thursday says revenues are expected to be $581 million more than previously forecasted.