What is the No. 1 source of education and state government funding in New Mexico? What is our No. 1 industry for employment, high-paying jobs and tax revenue? What is the specific source of the current $1.1 billion budget surplus?
If you said that the oil and gas industry is the “Golden Goose,” you would be correct. So why is the governor trying to place natural gas production on the endangered species list?
Since the beginning of the year, we’ve seen the new administration declare war on oil and gas producers, and at the same time propose a 13 percent budget increase. That’s like expecting to win the lottery every year!Read more
FISCAL YEAR 2018 UPDATE
Revenue attributable to the oil and gas industry comprised $2.2 billion in FY18 or 32.3 percent of total State General Fund Recurring revenue. Oil and gas revenue increased by $465 million from FY17, comprising one half of total General Fund recurring revenue growth.
The uses of this revenue as determined through the state budget were as follows:
➢ $822 million of support to public education;
➢ $240 million of support to higher education;
➢ $858 million of spending for other programs funded through the General Fund, including $290 million for health and human services;
➢ $237 million to the revenue surplus, of which a portion was spent on non-recurring purposes and the remainder was added to the State’s reserves which reached a total of 20% of recurring spending.
Revenue Climbs $465 Million from 2017 to 2018
SANTA FE, NEW MEXICO – 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.Read more
The U.S. added nine oil and gas rigs this week, indicating activity in the nation's shale fields may have slightly recovered after last week saw the biggest drop in total rigs since 2016.
The nation added 10 oil rigs and lost one gas rig, the Houston oilfield services company Baker Hughes reported. Texas, home to 517 oil and gas rigs, lost four this week. New Mexico, which has 112 rigs, led the increase, adding four. In all, there were 1,059 active rigs in the U.S. this week.
Drillers pulled more than 25 oil and gas rigs out of service last week, the biggest drop since the low point of the last oil bust. Losing rigs can be a sign of slowing activity in the nation's shale fields.Read more
ALBUQUERQUE, N.M. - According to a study of the nine oil-producing states, New Mexico gets the biggest cut from taxing oil and gas in the entire nation.
New Mexico’s tax rate is 20 percent, compared to about 15 percent for Wyoming and Texas, which get the second and third highest cuts.
“The government gets the largest share of oil and gas revenue as a percentage of production,” President of the New Mexico Tax Research Institute Richard Anklam said.
The estimated amount of money from last year is estimated in the billions.Read more