After years of explosive revenue growth, largely driven by the booming oil industry, the state of New Mexico expects a decline in revenue in the coming fiscal year.
For fiscal year 2026, recurring revenue is expected to reach $13.4 billion, including nearly $660 million in “new revenue,” the state’s Consensus Revenue Estimating Group now notes in a report presented to the Legislative Finance Committee on Wednesday.
“We’re going to see about 3 percent growth in (fiscal year 2026), so there’s really no bad news today … and, frankly, just a lot of continued good news,” Finance and Administration Secretary Wayne Propst told committee members meeting this week in Mescalero, near Ruidoso.
“We are very blessed in New Mexico,” Propst added.
The state tax office stated that “the moderate growth rate of general fund revenues was due to conscious decisions to increase the distribution of oil and gas production revenues to the Severance Tax Permanent Fund and the Early Childhood Education and Care Trust Fund and to provide tax relief to New Mexico residents.”
“Over the past five years, we have been able to provide significant tax relief to New Mexico families and businesses while still investing in our future,” Governor Michelle Lujan Grisham said in a statement. “Our economy remains strong and our general fund reserves are at historic highs.”
:quality(70):focal(1476x1428:1486x1438)/cloudfront-us-east-1.images.arcpublishing.com/shawmedia/P4JVVNLIOVHVNFJYBDHP6YMG6I.jpg "Bureau Valley ready for new challenge in Lincoln Trail/Prairieland Conference – Shaw Local")
