New Mexico state revenue from oil and natural gas production has reached a record high according to a new analysis from the nonpartisan New Mexico Tax Research Institute. The report shows that New Mexico’s General Fund and public schools benefitted from $2.2 billion in oil and natural gas taxes and revenues in fiscal year 2018, an all-time high and an increase of $465 million from fiscal year 2017.
The oil and gas industry contributes nearly one-third of the funding for our schools, infrastructure, healthcare, and public safety — more than any other industry in New Mexico.
Oil and natural gas revenue pumped $1.06 billion in funding for education in fiscal year 2018, supporting nearly $822 million for primary and secondary education, and $241 million for the state’s universities, colleges, and other higher education institutions. That’s an increase of $128 million over 2017 funding levels, or enough to hire more than 2,300 new teachers.
While most of New Mexico’s oil and natural gas production is concentrated in the southeast and northwest corners of the state, population centers along the Rio Grande corridor like Albuquerque and Las Cruces benefit the most. Oil and natural gas revenue supplied Albuquerque Public Schools with $205 million, while Las Cruces Public Schools brought in $59 million. The University of New Mexico led higher education institutions with $60 million, followed by New Mexico State University with $50 million.
“The future is very bright for New Mexico, and we can expect these trends to hold for the foreseeable future if New Mexico remains a favorable place for oil and natural gas producers to do business,” added Flynn. “We have the ability to set New Mexico on an upward trajectory that will shape and benefit our state for generations to come. New Mexico has turned the corner. It’s time to keep the momentum going, take advantage of our incredible economic resources, and pave the way to move New Mexico forward.”