New Mexico foresees more state income from oil in short run
SANTA FE, N.M. (AP) — A rebound in oil and natural gas prices is changing the outlook for state government finances in New Mexico as the Legislature drafts a spending plan for the coming fiscal year.
A team of economists from three state agencies and the Legislature said Wednesday that state government income is likely to increase by $339 million during the fiscal year that begins July 1 to a total of $7.55 billion.
State government income would exceed current annual spending obligations by 2.3% if the new estimate holds true.
Senate Finance Committee Chairman George Muñoz of Gallup said the state could be in a precarious financial situation when federal relief ends.