SANTA FE (AP) – New Mexico is revising downward estimates for revenue growth to $30 million from previous expectations of $232 million as the Legislature crafts a new budget.
The New Mexico Department of Finance and Administration announced Wednesday that a perfect storm of low energy prices had eroded revenue expectations for the budget year starting in July. Economists from three executive agencies and the Legislature agreed on the new estimate.
The revised figures threaten to upend priorities for spending during the Legislature’s abbreviated 30-day budgetary session.
Prior to the revisions, Republican Gov. Susana Martinez recommended a $230 million increase in spending. That plan included increased funding for Medicaid health care, law enforcement, early education programs and teacher pay.
Low oil prices in particular have eroded state income from severance taxes and royalties.