RED RIVER — The state is facing a big hole when it comes to the state budget, lawmakers were told at the latest meeting of the interim Legislative Finance Committee. The projected $325 million deficit for the current year’s budget comes in part because state revenue projections from January were off by more than half a billion dollars. A larger-than-expected downturn in the oil and gas industry made a big part of the decline. This year, the state House of Representatives passed a budget based on the January projections, but the state Senate drastically slashed that budget before sending it back to the House. But even the big cuts in the final budget for this year leave a lot to be done.
As energy prices remain low, a handful of New Mexico lawmakers will attempt to lower taxes on some oil and gas production this upcoming legislative session. Two bills, one in each chamber, target tax relief for specific types of oil and gas extraction. In the state House of Representatives, James Strickler, R-Farmington, pre-filed a bill to increase the threshold of oil prices to qualify for an existing state tax incentive. In the Senate, Gay Kernan, R-Hobbs, has a bill to reduce the severance tax rate on oil extraction. Both lawmakers say they filed their bills in response to stubbornly low oil prices that they say have hurt the state’s oil and gas industry.
After the general election in 2014, New Mexico Republicans took control of the House with a 37-33 majority over Democrats. This doesn’t mean that there are not any new Democrats. A total of seven Democrats won their respective races and will start their first terms as representatives. There is one new state Senator, Mimi Stewart of Albuquerque. The Albuquerque Democrat was named by the Bernalillo County Commission to replace Tim Keller, who won statewide election as state auditor. County commissioners chose Stephanie Maez, D-Albuquerque, to replace Stewart in the House.