By Nicole Maxwell, City Desk ABQ
New Mexico is expected to have $892 million in new money available for appropriations during the legislative session in January.
The general funds estimate was presented by state economists during the Legislative Finance Committee on Monday.
“The good news is there’s no bad news in this revenue forecast,” Department of Finance Administration Secretary Wayne Propst said.
The estimated recurring revenues for Fiscal Year 2025 are $13.26 billion, which is up from the August estimate by 1.6%, or $247.3 million, according to the General Fund Consensus Revenue Estimate.
“What better gift can you give New Mexico than what we just talked about?” LFC Chair Sen. George K. Muñoz, D-Gallup, asked. “The stability, the long term growth … I mean, this is the story. This is Senate Bill 26. Everything has changed in the last two years and how New Mexico’s finances are going to be for the next 50 years.”
SB 26 was signed into law in 2023 and transfers excess oil and gas revenue to the severance tax permanent fund so New Mexico can continue receiving benefits from the oil, natural gas and other nonrenewable resources beyond the life of the resources.
The transfers began in July 2024 and the severance tax permanent fund is expected to reach $1 billion by 2033, as NM Political Report previously reported.
The amount of money available for appropriations during the upcoming legislative session is high due “to fiscal restraint in recurring appropriations and higher base revenues,” the estimate states.
“We’re on track with what we got in August,” LFC Chief Economist Ismael Torres said.
FY26 estimates are expected to grow by 2.6% over FY25 to an estimated $13.61 billion.
FY24 recurring revenues are estimated to be up by 12.6% from FY23 at $13.05 billion, the report states.
“The state’s historic revenues have grown at a record pace, propped up by booming oil and gas, durable consumer spending, inflation, strong demand for employment, and robust wage growth,” the report states. “However, the pace of revenue growth has slowed in FY24, though still double the average growth rate of the previous two decades. As legislative changes to the tax code take effect and economic activity softens, revenue growth is expected to grow 1.6% in FY25 and 2.6% in FY26 before returning to more typical growth of over 3% in FY27 and beyond.”ing to more typical growth of over 3 percent in FY27 and beyond.”