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Lower oil prices mean less revenue for New Mexico

revenueSANTA FE — State finance officials say New Mexico’s economy is on the mend, but a drop in oil prices will leave lawmakers with less money as they prepare to hash out the budget during the upcoming session.

A forecast released Monday shows $141 million in new revenue should be available in the next budget year for spending increases on state government programs and public education.

That’s half of expectations just three months ago, which means agencies will have to revisit their spending requests.

Finance and Administration Secretary Tom Clifford says a $1 change in oil prices causes a $7.5 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.