A windfall in government income from petroleum production is slowing down but far from over in New Mexico as the nation's No. 2 oil-producing state grapples with how much it can effectively spend — and how to set aside billions of dollars for the future in case the world's thirst for oil falters.
The state is headed for a $3.5 billion general fund surplus for the year running through June 2025, according to a new forecast Monday. New Mexico’s annual state government income has swelled by nearly 50% over the past three years, driven largely by oil an natural gas production in the Permian Basin, the most prolific shale-oil producing region in the country that extends across southeastern New Mexico and portions of western Texas.
