New Mexico's state revenue higher than expected

Albuquerque Journal - Robust oil prices and production, primarily in southeastern New Mexico, will propel state revenue levels to come in roughly $250 million higher than expected for the just-completed fiscal year, based on preliminary figures. With possible federal budget cuts and other economic concerns looming, top-ranking state officials and lawmakers say the extra money likely will be needed. “This is proof that New Mexico has a very, very volatile revenue base,” Finance and Administration Secretary Tom Clifford said Tuesday. “This doesn’t remove our need for caution.” The stronger-than-expected revenues mean the state likely will end up taking in nearly $5.8 billion for the fiscal year that ended June 30, an increase of roughly 7 percent — or about $380 million — over the previous year. However, figures to be released today by the Department of Finance and Administration show that about $200 million of the $250 million in higher-than-expected revenue stems from oil and natural gas taxes and royalties, which tend to fluctuate from year to year. Oil and natural gas taxes and royalties currently make up about 16 percent of the state’s revenue, even more under some calculations. Rep. Luciano “Lucky” Varela, D-Santa Fe, vice chairman of the Legislative Finance Committee, said some of the unexpected money could be used during the 2013 legislative session to fill shortfalls in state agency budgets. “It’s a good thing that we do have some extra dollars so we can consider some of those deficiencies and supplementals,” Varela said. He also warned that the state could face federal budget cuts and may have to spend more money in order to expand its Medicaid program. Read More News New Mexico

New Mexico's state revenue higher than expected