SANTA FE, NM (KRQE) – In recent years, the oil and gas industry has given New Mexico a huge economic boost. But lawmakers know oil and gas revenues come with volatility, so they’re taking steps to help ensure fiscal stability over the next decade.
Legislators and governors approved Senate Bill 26, which puts the surplus earned from the oil and gas industry into an investment fund. The idea is that the state can rely on that fund when oil and gas revenues decline.
“Although current oil and gas revenues are high in New Mexico, our state economists predict they will begin to decline over the next 8 to 12 years,” Sen. Roberto “Bobby” Jay Gonzales (D-Los Alamos, Rio Arriba, Santa) Fe & Taos ) said in a press release. “Senate Bill 26 is an important course reform that invests in New Mexico’s long-term fiscal stability while not compromising budget priorities or our long-standing commitments. Making this investment will help New Mexico offset these projected future declines, and I commend Governor Luzon Grisham on his work in the process.” Thanks for sharing.
According to the governor’s office, the bill places excess funds in an account expected to earn an average return of 5.7%. That means the $8.2 billion held in the account in 2024 could grow to $30 billion by 2035.