New Mexico
New Mexico's oil income investments now surpass personal income tax revenue
SANTA FE, N.M. — Efforts by New Mexico to save and invest portions of a financial windfall from local oil production are paying off as state government income on investments surpasses personal income tax collections for the first time, according to a new forecast Monday.
General fund income from the state’s two, multibillion-dollar permanent funds and interest on treasury accounts is expected to climb to $2.1 billion for the fiscal year between July 2024 and June 2025, surpassing $2 billion in revenue from personal income taxes.
The investment earnings are designed to ensure that critical programs — ranging from childcare subsidies to tuition-free college and trade school education — endure if oil income falters amid a possible transition to new sources of energy.
At the same time, legislators this year revised personal income tax brackets to lower taxes in the nation’s No. 2 state for oil production behind Texas.
“We’re not a poor state anymore,” said Democratic state Sen. George Muñoz of Gallup. “We’ve got things that we can win on — free education, childcare … low taxes for working families, for children. And that’s all because we’ve done a lot of the work to set this up for the future.”
The comments came at a legislative panel Monday where economists from four government agencies announced an income estimate for the coming year. The figures are the baseline for budget negotiations when the Democratic-led Legislature convenes in January.
State government income, which is closely linked to oil production in New Mexico, continues to grow, though at a slower pace, as legislators discuss new investments in social programs aimed at curbing crime and homelessness.
Economists estimate the state will bring in a record-setting $13.6 billion in general fund income for the fiscal year that runs from July 2025 to June 2026, a 2.6% increase over the current period.
This year’s income bump leaves room for an additional $892 million in state spending in the coming fiscal year, a 7% increase, according to the Legislature’s accountability and budgeting office. State income is forecast to exceed current bedrock annual spending obligations by $3.4 billion.
New Mexico legislators are pushing to open new savings accounts.
One proposal would set aside as much as $1 billion in a trust to underwrite spending on mental health and addiction treatment in response to public frustration with crime and homelessness. Legislators also are likely to revisit a stalled proposal to create a trust for Native American education that could expand Indigenous language instruction.
CIBOLA COUNTY, N.M. (KRQE) – New Mexico’s caves attract hundreds of explorers each year, but those adventures can lead to dangerous situations requiring emergency rescues, and local first responders are learning how to do them. The National Cave Rescue Commission held a two-day rescue course in the Malpais National Monument this past weekend. The instructor told KRQE News 13 that participants learned how to provide first aid in one of the most difficult environments.
“Cave rescues are particularly difficult because of the limited resources available in those environments. Caves themselves are often very large underground spaces with extended travel times, so you may not be able to get resources that you request for many hours,” said Sarah Truebe, Regional Coordinator for the National Cave Rescue Commission.
Albuquerque Fire and Rescue was one of the agencies participating in the two-day weekend training, alongside other emergency responders, volunteer search and rescue personnel, and members of New Mexico’s caving community. The training included first aid, communication skills, proper transportation of injured patients, and technical rescue. Instructor Sarah Truebe says aside from first aid, participants also learn to be mindful of the environment and how fragile the ecosystem is.
“It is very easy to get really mission-focused and to just go straight to that patient and not think a lot about the environment around you, but because these resources are so fragile and rare, we really want to take care of that resources as well, while we’re doing the rescue response,” said Truebe.
In all, 14 instructors hosted a group of 31 participants. Truebe said that between Arizona and New Mexico, there are usually one to two cave rescues a year, but said that last year they conducted six rescues. Truebe said their next training course will be held in October in central New Mexico. She said the date will be posted online once that training is scheduled.
VALENCIA COUNTY, N.M. — Multiple earthquakes sent tremors through communities just south of Albuquerque, the U.S. Geological Survey reported Sunday morning.
The USGS reported a 3.9-magnitude earthquake happened at 11:41 a.m., just three minutes after a 3.7-magnitude earthquake. They were both in the Jarales and Rio Communities area.
Two other earthquakes were reported on the other side of the Rio Grande: A 3.2-magnitude earthquake Saturday at 8:30 p.m. and a 2.6-magnitude earthquake Saturday at 11:51 p.m., near Abeytas.
There have been reports of no damage or injuries, according to the Valencia County Fire Department. The Department received reports of an earthquake in the Jarales and Rio Communities area.
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