NM revenue levels soar; $1.2 billion in ‘new’ money projected (from O&G and fracking)

The Albuquerque Journal ^ | August 22, 2018 | Dan Boyd

[CedarDave]

After several cash-lean budget years that prompted spending cuts and other austerity measures, a big revenue boom has hit New Mexico.

State lawmakers will have an estimated $1.2 billion in “new” money available in the coming budget year due to unprecedented oil production levels and overall economic growth, according to new revenue figures released today by legislative and executive economists.

“This spike is unprecedented,” Legislative Finance Committee chief economist Jon Clark told members of a key legislative panel during a meeting in Taos. “We’re relying on the oil industry more than we ever have before.”

The eye-opening revenue figure — more than $7.5 billion for the budget year starting in July 2019 — could allow for state spending levels to hit an all-time high, and give lawmakers options to increase spending on public schools, health care and other programs next year, when a new governor will be in office.

Already, the revenue increase has allowed the state to replenish its depleted cash reserves and will mean roughly $177 million will be set aside next July a recently created “rainy-day” fund that would be available to lawmakers for future budget crunches.

New Mexico is among the most volatile states in the nation when it comes to annual revenue streams, and has historically relied heavily on oil and natural gas taxes and royalties to help pay for state government operations.

There are currently 104 active drilling rigs in the state, up from 62 year rigs a year ago, according to the New Mexico Oil and Gas Association.

[CedarDave]

Oil revenue in the past has made up one-third of the state budget. With this new income, it may get to 40 percent.

The Democratic candidate for governor, Michelle Lujan-Grisham, is against fracking in private though she expresses mediocre support for the state's O&G industry in public. Sort of like the Dems running in the mid-terms -- they don't say it out loud, but everyone knows they will impeach the President if they take control of the House.

Meanwhile, a Rat PAC is buying ads claiming Pub candidate Pearce is corrupt for receiving oil industry campaign money and selling his oil field service business (which he founded) for an excessive profit.

[CedarDave]

NM list PING!

I may not PING for all New Mexico articles. To see New Mexico articles by topic click here: New Mexico Topics

To see NM articles by keyword, click here: New Mexico Keywords

To see the NM Message Page, click here: New Mexico Messages

(The NM list is available on my FR homepage for FR member use; its use in the News Forum should not be for trivial or inconsequential posts. Let me know if you wish to be added or removed from the list.)
(For ABQ Journal articles requiring a subscription, scroll down to the bottom of the page to view the article for free after answering a question or watching a short video commercial.)

[txrefugee]

Yes, and these dumb SOBs voted for Hillary. They don’t deserve having prosperous Texas as a neighbor.

[CedarDave]

Here is a link to the ABQ Journal article on the Pearce smear campaign:

Democratic-backed PAC’s ad says Pearce is ‘in the pocket of Big Oil’

Important points to take from the article:

The ad ... claims Pearce is in the “pocket of Big Oil” and describes him as being named one of the most corrupt members of Congress a decade ago by an independent watchdog group.

Pearce, a Hobbs resident, has received hefty campaign contributions from oil and natural gas executives – including millions of dollars in the current campaign cycle – but the corruption allegation was based at least in part on the 2003 sale of his oil field service company’s assets to a different company.

A House ethics panel later determined that Pearce did not violate any rules during that transaction, according to FactCheck.org, a nonprofit group.

[PTBAA]

They could cut tax rates. Just sayin’....