Comment on New Mexico’s oil investments are paying off. Here’s where the funds may go

New Mexico’s oil investments are paying off. Here’s where the funds may go

Economists estimate the state will bring in $13.6 billion in general fund income for the fiscal year that runs from July 2025 to June 2026. Efforts by New Mexico to save and invest portions of a financial windfall from local oil production are paying off as state government income on investments surpasses personal income tax collections for the first time, according to a new forecast Monday.General fund income from the state’s two, multibillion-dollar permanent funds and interest on treasury accounts is expected to climb to $2.1 billion for the fiscal year between July 2024 and June 2025, surpassing $2 billion in revenue from personal income taxes.The investment earnings are designed to ensure that critical programs—ranging from childcare subsidies to tuition-free college and trade school education—endure if oil income falters amid a possible transition to new sources of energy.At the same time, legislators this year revised personal income tax brackets to lower taxes in the nation’s No.

 

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