LFC report says New Mexico economy doing well, for now

The New Mexico economy, as of May 23, is doing well. It is going so well that state economists raised revenue estimates in the two fiscal years leading up to this year’s legislative session. That’s what the Legislative Finance Committee post-session report released on Tuesday said.  “Recurring revenues for [Fiscal Year 2023] were estimated at […]

LFC report says New Mexico economy doing well, for now

The New Mexico economy, as of May 23, is doing well. It is going so well that state economists raised revenue estimates in the two fiscal years leading up to this year’s legislative session.

That’s what the Legislative Finance Committee post-session report released on Tuesday said. 

“Recurring revenues for [Fiscal Year 2023] were estimated at almost $10.8 billion in the December 2022 estimate, up $928 million from the August estimate and up $1.7 billion from estimates a year earlier. Fiscal year 24 recurring revenues were estimated at almost $12 billion,” the report stated.

Projected recurring revenues were estimated at nearly $3.6 billion, 42.7 percent growth over the previous year, for FY 24 which begins on July 1.

During the legislative session, lawmakers increased those recurring budgets by nearly 14 percent to $9.57 billion in FY 24 in the state budget.

“The act first prioritizes historic human capital investments, from cradle to career, including expanding access to infant and toddler childcare and parent-support home visits, early childhood pre-kindergarten education, extended learning time in public schools, and higher education through free tuition and expanded financial aid,” the report said. “The GAA funds and expands programs known to improve the lives of New Mexicans, efforts to improve service levels, and improved compensation for public education and state government workers to keep salaries competitive and help with the recruitment and retention of quality public servants.”

Child Protective Services received funding to fill hundreds of new and existing social worker positions as well as funding for “evidence-based programs to modernize the state’s child welfare system,” according to the report.

The budget also included Medicaid rate increases, mostly for infant and maternal health, behavioral health and physician services, the report states.

The budget also left revenue for one-time tax rebates and vetoed tax code changes.

Prior to Gov. Michelle Lujan Grisham’s vetoes in the 2023 tax package would have cut $1.138 billion in recurring revenues and $673 million in nonrecurring revenues through a series of tax changes including $500 million in gross receipts tax rate cuts by FY27, $678 million for income tax rebates and $7 million in revenue gains to create a flat corporate income tax.

“FY24 reserve balances are projected to end the fiscal year at 37.1 percent of recurring appropriations after governor vetoes, including a substantial amount vetoed from the tax package,” the report said.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Effort to challenge six laws enacted last year comes to an end

Effort to challenge six laws enacted last year comes to an end

Earlier this month, the New Mexico Supreme Court denied and dismissed the effort to challenge six laws enacted in 2023. The New Mexico Supreme…
Governor to call special session for public safety legislation this summer

Governor to call special session for public safety legislation this summer

Gov. Michelle Lujan Grisham announced that she will call the Legislature into a special session this summer to address public safety legislation that did…
Emily’s List endorses seven candidates for Legislature

Emily’s List endorses seven candidates for Legislature

Emily’s List, a nonprofit that supports women candidates and reproductive rights, endorsed seven incumbents facing general election opponents in New Mexico legislative elections. All…
Ozone pollution continues to plague New Mexico

Ozone pollution continues to plague New Mexico

Four of the nine New Mexico counties evaluated in the annual State of the Air report received failing marks for ozone pollution. The counties…
NM receives $156M to boost access to solar

NM receives $156M to boost access to solar

New Mexico will receive millions in federal money to increase access to solar power. The U.S. Environmental Protection Agency announced recipients of the $7…
Two PFAS chemicals designated hazardous substances under Superfund law

Two PFAS chemicals designated hazardous substances under Superfund law

The U.S. Environmental Protection Agency released a final rule Friday to designate two types of PFAS chemicals as hazardous substances. Those two chemicals are perfluorooctanoic…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Health workers fear it’s profits before protection as CDC revisits airborne transmission

Health workers fear it’s profits before protection as CDC revisits airborne transmission

Amy Maxmen, KFF Health News Four years after hospitals in New York City overflowed with covid-19 patients, emergency physician Sonya Stokes remains shaken by…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Latest SCOTUS abortion case uncertain and could impact New Mexico

Latest SCOTUS abortion case uncertain and could impact New Mexico

The U.S. Supreme Court heard oral arguments on Wednesday on an abortion-related case, this time over whether an Idaho anti-abortion law preempts a federal…
Abortion fund provider rebrands and holds open house

Abortion fund provider rebrands and holds open house

An abortion fund provider unveiled a rebrand and offered an open house in Las Cruces to celebrate the organization’s new name, mission and values. …
Stansbury introduces judicial ethics bill on U.S. Supreme Court steps

Stansbury introduces judicial ethics bill on U.S. Supreme Court steps

U.S. Rep. Melanie Stansbury announced a bill on Thursday that would, if enacted, establish judicial ethics to the U.S. Supreme Court. The Judicial Ethics…
Latest SCOTUS abortion case uncertain and could impact New Mexico

Latest SCOTUS abortion case uncertain and could impact New Mexico

The U.S. Supreme Court heard oral arguments on Wednesday on an abortion-related case, this time over whether an Idaho anti-abortion law preempts a federal…
Abortion fund provider rebrands and holds open house

Abortion fund provider rebrands and holds open house

An abortion fund provider unveiled a rebrand and offered an open house in Las Cruces to celebrate the organization’s new name, mission and values. …
Politics and abortion, how much will it matter?

Politics and abortion, how much will it matter?

At the national level, abortion is still a high-stakes issue with both major presidential candidates talking about it in their campaigns, but it may…
Progressives going after incumbents in hot Democratic primaries

Progressives going after incumbents in hot Democratic primaries

By Justin Horwath, NM In Depth It’s a safe bet Democrats will barrel into 2025 with their supremacy intact at the New Mexico Legislature.…
Effort to challenge six laws enacted last year comes to an end

Effort to challenge six laws enacted last year comes to an end

Earlier this month, the New Mexico Supreme Court denied and dismissed the effort to challenge six laws enacted in 2023. The New Mexico Supreme…
Vasquez calls out Republicans for ‘inaction’ on border policy

Vasquez calls out Republicans for ‘inaction’ on border policy

U.S. Rep. Gabriel “Gabe” Vasquez, a Democrat who represents the state’s 2nd Congressional District along the U.S.-Mexico border, cosponsored a resolution on Monday calling…
Latest SCOTUS abortion case uncertain and could impact New Mexico

Latest SCOTUS abortion case uncertain and could impact New Mexico

The U.S. Supreme Court heard oral arguments on Wednesday on an abortion-related case, this time over whether an Idaho anti-abortion law preempts a federal…
Ozone pollution continues to plague New Mexico

Ozone pollution continues to plague New Mexico

Four of the nine New Mexico counties evaluated in the annual State of the Air report received failing marks for ozone pollution. The counties…
Progressives going after incumbents in hot Democratic primaries

Progressives going after incumbents in hot Democratic primaries

By Justin Horwath, NM In Depth It’s a safe bet Democrats will barrel into 2025 with their supremacy intact at the New Mexico Legislature.…

GET INVOLVED

© 2023 New Mexico Political Report