NM’s revenue still hasn’t recovered from pre-recession high

No one following the legislative session and debate over the state budget will be surprised that New Mexico still isn’t back to peak, pre-recession levels on tax revenue. New Mexico is one of 13 states that still haven’t reached the pre-recession levels of tax revenue collection. The findings come from ongoing reports by the Pew […]

No one following the legislative session and debate over the state budget will be surprised that New Mexico still isn’t back to peak, pre-recession levels on tax revenue.

New Mexico is one of 13 states that still haven’t reached the pre-recession levels of tax revenue collection.

The findings come from ongoing reports by the Pew Charitable Trusts of the most recently-available tax revenue data from states. All numbers are adjusted for inflation.

New Mexico is one of 32 states that didn’t collect as much tax revenue in the most recently-available data since the recession. The numbers are from the second quarter (April through June) of 2016.

New Mexico’s revenue was 12.6 percent lower than its pre-recession peak in the 4th quarter of 2016.

The change in tax revenue in New Mexico (orange) and the United States (blue) since 2006.

New Mexico’s neighbors also fell short of their pre-recession revenue peak. Arizona remained 3.5 percent behind in tax collections, when compared to its pre-recession peak, and Utah was 1.3 percent behind.

Meanwhile,Texas’ tax collections were 4.3 percent higher than the pre-recession peak. Colorado’s collections were 19.9 percent higher than the state’s pre-recession peak.

New Mexico’s tax revenue ticked downward in the second quarter of 2016, like all ten of the top oil-producing states (which includes neighboring Colorado and Texas). Texas and North Dakota were also further impacted by tax cuts that went into effect, per the Pew report.

Not only did New Mexico’s tax revenue tick down in the second quarter of 2016, the state was one of six states with a full year of declining tax revenue. Again, states that rely on energy production made up most of the list (North Dakota, Oklahoma, Texas and West Virginia joined Illinois).

The closest New Mexico has come to matching peak pre-recession revenues was in the 1st Quarter of 2015, when revenues were just 1.1 percent behind the pace. That has dropped precipitously in the 15 months covered by the report to the 12.6 percent below the pre-recession peak.

This is the worst since the 2nd quarter of 2013, when New Mexico’s revenues were 22.5 percent off the peak pre-recession numbers. The worst came in the 1st quarter of 2010, when New Mexico’s revenues were 29.8 percent below the peak.

Still, New Mexico is better off than some other energy-dependent states. Oklahoma is 15.1 percent from its pre-recession revenue peak, Louisiana is 19.1 percent off of its pre-recession revenue peak, Wyoming is 31.1 percent off of its pre-recession revenue peak and Alaska is 93.9 percent off of its pre-recession revenue peak. The only other state besides these to be down more than 15 percent from previous peaks is Florida, at -17.7 percent.

“Without personal income or general sales taxes, Alaska is highly dependent on oil-related severance tax revenue, which began falling even before worldwide crude prices declined in 2014 as its oil production waned,” Pew wrote of the country’s largest state.

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

Experts weigh in on legislation needed to reduce gun violence

Experts weigh in on legislation needed to reduce gun violence

Gov. Michelle Lujan Grisham said she may call a special legislative session to discuss legislation intended to mitigate gun violence. Most of Lujan Grisham’s…
Hed: Guv signs bills aimed to improve healthcare

Hed: Guv signs bills aimed to improve healthcare

Governor Michelle Lujan Grisham signed several healthcare bills which officials said would help insulate rural hospitals from financial vulnerability during a press conference at…
ECECD expects slightly smaller budget than requested

ECECD expects slightly smaller budget than requested

The budget passed by the legislature this year contained much, though not all, of what the Early Childhood Education and Care Department requested. The…
Tribal members discuss the impacts of uranium industry

Tribal members discuss the impacts of uranium industry

The Inter-American Commission on Human Rights heard about the contamination of Native American lands by uranium extraction and milling during a thematic hearing on…
MRGCD prepares for irrigation season

MRGCD prepares for irrigation season

The Middle Rio Grande Conservancy District opened its headgates this week to test infrastructure in advance of irrigation season. The opening of the gates…
Source of PFAS contamination in Santa Fe County remains unknown

Source of PFAS contamination in Santa Fe County remains unknown

For José “Chappy” Villegas, the PFAS contamination in his well represents more than just betrayal by the governments that were supposed to protect him.…
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…
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…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Guv outlines some health priorities on state spending

Guv outlines some health priorities on state spending

During her state of the state address on Tuesday, Gov. Michelle Lujan Grisham told legislators that one of her legislative priorities is a request…
Referendum on Edgewood’s anti-abortion ordinance moves forward

Referendum on Edgewood’s anti-abortion ordinance moves forward

The town of Edgewood is moving forward with its ballot referendum on its anti-abortion ordinance at a cost of more than $35,000. The town…
2023 Top Stories #1: Anti-abortion efforts go local

2023 Top Stories #1: Anti-abortion efforts go local

Note: Every year, we count down the top ten stories of the year, as voted on by NM Political Report staffers. Earlier this month, the New Mexico Supreme Court heard oral…
NM Supreme Court to decide if local anti-abortion ordinances are legal

NM Supreme Court to decide if local anti-abortion ordinances are legal

The New Mexico Supreme Court will decide whether anti-abortion ordinances passed by local governments in eastern New Mexico over the last 13 months can…
Hed: Guv signs bills aimed to improve healthcare

Hed: Guv signs bills aimed to improve healthcare

Governor Michelle Lujan Grisham signed several healthcare bills which officials said would help insulate rural hospitals from financial vulnerability during a press conference at…
HSD taps former Arizona Medicaid official to lead New Mexico’s Medicaid program

HSD taps former Arizona Medicaid official to lead New Mexico’s Medicaid program

A former Arizona Medicaid senior policy advisor and assistant director will head the New Mexico Medicaid program under the state’s Human Services Department. HSD…
AGs want FDA guidance on heavy metals for the baby food industry

AGs want FDA guidance on heavy metals for the baby food industry

New Mexico Attorney General Raúl Torrez and a coalition of 19 other attorneys general called on the U.S. Food and Drug Administration to issue…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Manny Gonzales doesn’t qualify for Senate GOP primary ballot

Nella Domenici is the lone Republican candidate for U.S. Senate, after Manny Gonzales III failed to qualify for the ballot. Gonzales did not file…
Experts weigh in on legislation needed to reduce gun violence

Experts weigh in on legislation needed to reduce gun violence

Gov. Michelle Lujan Grisham said she may call a special legislative session to discuss legislation intended to mitigate gun violence. Most of Lujan Grisham’s…
Hed: Guv signs bills aimed to improve healthcare

Hed: Guv signs bills aimed to improve healthcare

Governor Michelle Lujan Grisham signed several healthcare bills which officials said would help insulate rural hospitals from financial vulnerability during a press conference at…
ECECD expects slightly smaller budget than requested

ECECD expects slightly smaller budget than requested

The budget passed by the legislature this year contained much, though not all, of what the Early Childhood Education and Care Department requested. The…

GET INVOLVED

© 2023 New Mexico Political Report