Leading New Mexico lawmakers on Friday recommended a 5.9% increase in general fund spending for the coming fiscal year amid a windfall in oil-related income, while also sounding a cautionary note on the future of the state's petroleum bonanza and setting aside more money in savings and investment accounts.
The proposal from a lead budget writing committee to the Democratic-led Legislature would increase general fund spending by $566 million to $10.1 billion for the fiscal year running from July 2024 to June 2025. The increased general spending represents a fraction of an anticipated $3.5 billion surplus of state income in excess of current tax obligations.
