New Mexico Lawmakers Propose 5.9% Increase in General Fund Spending Amid Oil-Related Income Windfall

State Budget Heavily Reliant on Volatile Oil and Natural Gas Income, Warns State Sen. George Muñoz

New Mexico lawmakers propose a 5.9% increase in general fund spending for the fiscal year running from July 2024 to June 2025, increasing spending by $566 million to $10.1 billion.
The proposed budget aims to improve student achievement, support health care for people in poverty or on the cusp, and provide pay raises averaging 4% to state employees.
State Sen. George Muñoz warns that the state budget is more reliant than ever on income from oil and natural gas, a commodity subject to volatile swings in pricing and production.
Republican state Sen. Pat Woods urges colleagues to slow the pace of recent budget increases and evaluate the effectiveness of current funding.
Governor Michelle Lujan Grisham's rival budget proposal would increase general fund spending more dramatically by about $950 million, or nearly 10%, to $10.5 billion.