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New Mexico Senate endorses budget bill emphasizing savings during oil sector windfall

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New Mexico Senate endorses budget bill emphasizing savings during oil sector windfall


SANTA FE, N.M. (AP) — New Mexico is preparing to set aside billions of dollars to sustain government spending in the future in case an oil production bonanza fades in the transition to cleaner sources of energy. The Senate on Monday approved a $10.2 billion annual spending plan that also creates new endowments and trusts designed to support critical programs in the future. The 31-10 Senate vote sends the bill back to the House for concurrence on amendments. The Democratic-led Legislature has until noon on Thursday to send a budget bill to Democratic Gov. Michelle Lujan Grisham for consideration.

SANTA FE, N.M. (AP) — New Mexico would set aside well over $1 billion to guarantee tuition-free college and sustain government spending in case its oil production bonanza fades in the transition to cleaner energy sources under an annual spending plan endorsed by the state Senate on Monday.

The 31-10 Senate vote sends the bill back to the House for concurrence on amendments. The Democratic-led Legislature has until noon Thursday to send a budget bill to Democratic Gov. Michelle Lujan Grisham, who can approve or veto any provisions.

The bill as amended would increase annual general fund spending by $653 million, or 6.8%, to $10.2 billion for the fiscal year running from July 2024 through June 2025.

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The boost in state spending is dwarfed by more than $1.3 billion in general fund transfers to new endowments and trusts designed to bolster scholarships for college and professional training, housing construction, outdoor conservation programs and autonomous Native American education programs.

Legislators anticipate a $3.5 billion budget surplus for the coming fiscal year, driven largely by oil and natural gas production in the Permian Basin that overlaps southwestern New Mexico and western Texas.

Republican state Sen. William Burt of Alamogordo urged colleagues to support the bill “because oil and gas won’t always be there for us.”

“We’ve got to look farther than the next few years. We’ve got to look at the long … future of New Mexico,” said Burt, one of six Republicans who voted for the spending bill.

The budget plan includes a new $959 million trust to permanently underwrite tuition-free college without fees for New Mexico residents — an initiative championed by Grisham since taking office in 2019. Public scholarships still are supported in part by lottery ticket sales.

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The bill allocates $512 million to a “government results and opportunity” trust that would underwrite a variety of new programs during a three-year vetting period before future funding is guaranteed.

Another $75 million fund would help state and local governments compete for more federal infrastructure spending from the Inflation Reduction Act, the Biden administration’s signature climate, health care and tax package.

A conservation fund established in 2023 would get a $300 million infusion. Democratic Senate Majority Leader Peter Wirth said that would guarantee annual distributions of about $21 million to an array of conservation programs at state natural resources agencies, from soil enhancement programs in agriculture to conservation of threatened and big-game species.

A revolving loan fund to finance construction would receive a $175 million infusion to expand both housing and commercial building inventory.

“New Mexico, you are not a poor state,” said state Sen. George Muñoz of Gallup, the Senate’s lead budget negotiator, urging colleagues to endorse the budget and its investment strategy.

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Democratic state Sen. Bill Soules of Las Cruces voted for the bill but cautioned that the state shouldn’t lose sight of such urgent concerns as childhood poverty as it builds up savings and investments. The bill includes funding for universal free school breakfasts and lunches.

“Are we afraid of the future and so afraid that we’re going to put money away for the future instead of addressing the needs today?” Soules said. “Making sure children don’t go hungry in New Mexico, aren’t abused and have a place to sleep at night — all of those are our obligations.”

Major annual spending increases include a 6.1% boost to K-12 public school funding, to $4.4 billion.

Medicaid spending would increase by $180 million, or 11%, as pandemic-era federal subsidies for the program recede and New Mexico increases payment rates to medical providers, including care for women with newborn children. The budget bill also increases pay by 3% for state employees and staff at K-12 schools, state colleges and public universities at an annual cost of $214 million.

It would funnel more money to rural hospitals, literacy programs, state police salaries, safety-net programs for seniors and road construction and maintenance.

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Several provisions of the budget are contingent upon approval of companion legislation:

—New Mexico would become the 14th state to ensure paid time off to workers when they’re seriously ill or to care for newborns and loved ones under a bill that advanced Monday toward a decisive House floor vote after Senate approval. The budget would provide at least $24 million to launch the program, which funds leave through a combination of employee and employer contributions.

—Final passage is still pending on changes that would reduce personal income taxes across the earnings spectrum, collect more taxes on investment income, and provide tax credits toward the purchase of new and used electric vehicles that can be combined with federal subsidies. State government would forgo about $220 million in annual income. The bill passed the Senate on a 26-13 vote Monday, and awaits a House concurrence vote.

—Final approval also was pending Monday on several new endowments and trusts.

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New Mexico

Tanques Wildfire Update

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Tanques Wildfire Update


Friday, July 26, 2024

Location: Northwest corner of the Santa Fe National Forest in the Cuba Ranger District, approximately 27 miles north of Cuba, NM.

Start Date: July 18, 2024

Size: 2,745 acres with a planned perimeter of 7,000 acres

Percent completed: 35 %

Cause: Lightning

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Vegetation: The wildfire is burning in ponderosa pine, pinyon-juniper, and oak.

Resources: 36 personnel including aerial resources

Overview: Santa Fe National Forest will manage the fire as a Type 3 incident with a confine and contain strategy.  This means crews will manage the fire within a predetermined area (confine) and use points to stop the fire’s spread (contain). To accomplish this strategy, crews will conduct firing operations using aerial and hand ignitions within a 7000-acre planned perimeter as early as July 25 and use roads, hand lines, and natural barriers as containment lines.

The fire is burning in the Moya National Environmental Policy Act (NEPA) project area and a landscape that has been thinned and treated with prescribed fire in the past. The primary objectives for the Tanques Wildfire are to provide for firefighter and public safety and improve wildlife habitat.

Highlights: Fire held within the fire perimeter overnight. Today, aerial ignitions, conducted by a helicopter, continue within the project area. Crews are managing fire activity and preparing for thunderstorms later this evening.

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Weather: After a relatively calm night Thursday night, an uptick in afternoon thunderstorm activity in the fire area is forecast Friday through the weekend.

Closure Order: A temporary area and road closure is in effect to protect the public’s health and safety during firefighting operations for the Tanques Wildfire. The closure order is available on the Santa Fe National Forest’s website – Closure Order 03-10-02-24-11 .

Safety: The health and safety of firefighter and the public are always the highest priority. Please avoid the area while crews manage the Tanques Wildfire. Drones and firefighting aircraft are a dangerous mix and could lead to accidents or slow down wildfire operations. If you fly, we can’t.

Smoke: Smoke may be visible from communities along Highway 112 including El Vado and Llaves, NM and from the Jicarilla Apache Nation Indian Reservation. View an interactive smoke map on AirNow Fire and Smoke Map. To learn more about smoke impacts visit Wildfire and Prescribed Fire Smoke Resources (nm.gov).

Fire Information:

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Contact Claudia Brookshire, Public Affairs Officer, Santa Fe National Forest

Phone: 505-607-0879 (available from 8:00 am to 7:00 pm)

Email: claudia.brookshire@usda.gov

Links: Santa Fe National Forest website, New Mexico Fire Info, Inciweb, and Santa Fe National Forest social media (Facebook and X).

Tanques Wildfire updates will be provided weekly.

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USDA is an equal opportunity provider, employer and lender.



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New Mexico

Cruisin' with New Mexico social media star Johnny James

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Cruisin' with New Mexico social media star Johnny James


Johnny James has become popular for showing off the quirks of New Mexico’s culture but who is he? We took a cruise and got to know him more.

ALBUQUERQUE, N.M. — There’s a local man who’s been skyrocketing to stardom, simply by making videos about New Mexico’s unique culture.

Phrases and things only New Mexicans know. Johnny James is sharing with the world:

  • “Down here in New Mexico, we got our own way of doing things. And we DEFINITELY got our own way of saying things.”
  • “You wanna go check out that new chicken place that just opened up real quick, errr what?”
  • “The classic New Mexican phrase…ombers.”

Johnny James is an unintended influencer, having some fun with his own culture. He started making videos on social media during the pandemic. There’s a certain unfiltered authenticity that has garnered him hundreds of thousands of followers.

“I started making videos from a real point of view, from us down here, for us down here. And it just cracked off,” he said.

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Johnny’s life hasn’t always been something you’d want to share online.

“Totally fair to say. Straight up, I’ll be all the way honest… from like 13 to when it was done, I grew up in the streets selling dope,” he said. “I got kicked out of school in the 11th grade. Had my ‘jito when I was 16. I always kinda credit him for shifting my trajectory.”

Now, at 39 years old, Johnny has four boys and has a career in music, podcasting, cannabis and, one that he hates to admit, influencing.

He knows having an influence can be a good thing.

“If I can be like, look… we have similar backgrounds but if you take a different route, look where we are now,” he said.

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Johnny is using it good. Recently, he started a GoFundMe to raise money for people affected by the Ruidoso fires and flooding. As expected, New Mexicans have turned out, raising more than $70,000.

People know Johnny. When we cruised Central with him in his ’64 Impala lowrider, many people spotted him from a mile away so we had to stop a few times.

See the full cruise and story in the video above.



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PRC approves NM Gas Co. rate increase agreement – NM Political Report

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PRC approves NM Gas Co. rate increase agreement – NM Political Report


The New Mexico Public Regulation Commission approved a stipulated agreement which is expected to result in a rate increase for customers.  The stipulated agreement is between New Mexico Gas Company and various consumer and environmental advocates. The gas utility initially asked for the ability to collect nearly $49 million in additional revenue from customers. The […]

The New Mexico Public Regulation Commission approved a stipulated agreement which is expected to result in a rate increase for customers. 

The stipulated agreement is between New Mexico Gas Company and various consumer and environmental advocates. The gas utility initially asked for the ability to collect nearly $49 million in additional revenue from customers. The stipulated agreement reduced that to $30 million.

The rate increase will go into effect in October.

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Commissioner James Ellison said he supports the stipulated agreement. He also expressed concerns that this is at least the fourth time in eight years that a rate case involving NM Gas Co. has been resolved through a stipulated agreement.

“I do think it’s also reasonable to ask how many stipulations in a row would we like to see before we’d like to have a litigated case,” he said.

He said the advantages of a stipulation is that it provides a mutually acceptable resolution, especially in cases where there are multiple intervening parties. That makes it unlikely that any party will appeal the ruling.

“But I do think with the litigated case, there is more scrutiny,” he said.

Commission Chairman Patrick O’Connell said he believes there’s value in both litigated cases and in stipulated agreements.

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“If you just settle, settle, settle, who knows what’s buried in the trajectory there,” he said.

He said the best way to learn all the details is to have the transparency that a litigated process brings.

“Having said that, I think probably, if we have concerns about that, I think we’ll want to somehow signal that ahead of when they file their next case,” O’Connell said.

Ellison said that NM Gas Co. has indicated that the lower increase in revenue will mean that some of the projects it is undertaking, such as replacing meters, will be done more slowly. However, he said, the utility is not canceling any projects required for pipeline safety or compliance with federal regulations.

“I do take the company at its word here that they’re going to replace the 90-year-old uncoated steel pipeline first, and if they need to delay something, they’re going to delay projects that are more discretionary like the meter replacements,” he said.

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Commissioner Gabriel Aguilera said that there is not 100 percent visibility about which projects will be performed using the $30 million additional revenue and which ones are going to be delayed because of the reduced amount in the stipulated agreement.

“But I received some assurance from the explanation that the projects that are needed for reliability and safety will be the ones that will be pursued here,” he said.

At the same time, Aguilera said that he does not anticipate that the projects NM Gas Co. initially requested money for will go away. He said those projects will now be delayed due to the smaller revenue increase.

“I anticipate that they will be back before us with similar if not the same projects,” he said.



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