Oil and gas industry adds billions to New Mexico’s budget as economists warn of volatility

Expanding oil and gas operations drove state economists to forecast New Mexico’s General Fund would grow by about a billion dollars annually for the next two years, according to the latest economic outlook by the Legislative Finance Committee.

The General Fund is used to operate state agencies and services each year as directed by lawmakers and New Mexico’s administration.

In Fiscal Year 2023, running from July 1, 2022, to June 30, 2023, the General Fund was reported at about $11.6 billion.

The Committee in its August estimate expected the fund to rise to $12.6 billion in FY 2024 and to $13.1 billion in FY 2025.

The latest FY 2024 estimate was about $790.7 million higher than the previous forecast issued in December, records show, as oil and gas revenue to the state continue to grow in step with production in the Permian Basin in southeast New Mexico.