New Mexico Senate endorses budget bill emphasizing savings during oil sector windfall
ABC News
New Mexico is preparing to set aside billions of dollars to sustain government spending in the future in case an oil production bonanza fades in the transition to cleaner sources of energy
SANTA FE, N.M. -- New Mexico would set aside well over $1 billion to guarantee tuition-free college and sustain government spending in case its oil production bonanza fades in the transition to cleaner energy sources under an annual spending plan endorsed by the state Senate on Monday.
The 31-10 Senate vote sends the bill back to the House for concurrence on amendments. The Democratic-led Legislature has until noon Thursday to send a budget bill to Democratic Gov. Michelle Lujan Grisham, who can approve or veto any provisions.
The bill as amended would increase annual general fund spending by $653 million, or 6.8%, to $10.2 billion for the fiscal year running from July 2024 through June 2025.
The boost in state spending is dwarfed by more than $1.3 billion in general fund transfers to new endowments and trusts designed to bolster scholarships for college and professional training, housing construction, outdoor conservation programs and autonomous Native American education programs.
Legislators anticipate a $3.5 billion budget surplus for the coming fiscal year, driven largely by oil and natural gas production in the Permian Basin that overlaps southwestern New Mexico and western Texas.
