SANTA FE, N.M. (KRQE) – In recent years, the oil and gas industry has given New Mexico a massive financial boost. But lawmakers know that oil and gas revenue comes with volatility, so they’re taking action to help ensure financial stability into the next decade.
Legislators and the Governor approved Senate Bill 26, which would take excess money earned from the oil and gas industry and put it into an investment fund. The idea is that the state can then rely on that fund when oil and gas revenue slumps.
“Even though current oil and gas revenues are high in New Mexico, our state economists predict they will start declining in the next 8 to 12 years,” Sen. Roberto “Bobby” J. Gonzales (D-Los Alamos, Rio Arriba, Santa Fe & Taos) said in a press release. “Senate Bill 26 is a critical course correction that invests in New Mexico’s long-term financial stability while not compromising on budget priorities or our longstanding commitments. Making this investment will help New Mexico offset these projected future declines, and I thank Governor Lujan Grisham for her partnership throughout the process.”
The bill puts excess funds into an account expected to earn an average return of 5.7%, according to the Governor’s Office. That could mean that $8.2 billion put in the account in 2024 could grow to $30 billion by 2035.
