Oil prices expected to lower New Mexico revenues
State finance officials are expected to brief lawmakers on revenue estimates that will provide the foundation for how much money the Legislature can spend on budget increases in the upcoming session.
A dip in the price of oil is expected to affect what New Mexico has to work with. Finance and Administration Secretary Tom Clifford has said a $1 change in oil prices can cause a $6 million change in revenue for the state's main budget account.
The state relies heavily on taxes and royalties from energy production, with a little over $1.1 billion in revenue coming from oil and gas last year. The state peaked at $1.2 billion from energy taxes in the 2008 budget.
- The Associated Press
- Published on:
- December 8, 2014
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