New Mexico Oil Revenue Surpasses Income Taxes

New Mexico's financial landscape is undergoing a significant transformation as state investment income from oil production is projected to surpass personal income tax revenue for the first time, expected to reach $2.1 billion from July 2024 to June 2025. This shift highlights the state's strategic reliance on its oil wealth, allowing for substantial investments in social programs such as childcare subsidies and tuition-free education. Democratic state Senator George Muñoz emphasized that this newfound financial stability reflects a brighter economic future for New Mexico, stating, 'We’re not a poor state anymore.' The growing investment earnings are crucial for sustaining key community initiatives, especially as the state prepares for potential declines in oil revenue due to energy transitions. Additionally, recent revisions to income tax brackets aim to lower tax burdens, reinforcing the state’s commitment to support working families. Economists predict record general fund income of $13.6 billion for the fiscal year 2025-2026, indicating continued growth in state revenue.