New Mexico governor proposes 10% spending increase amid windfall from oil production

By MORGAN LEE
Associated Press

SANTA FE, N.M. (AP) — New Mexico’s governor is proposing a nearly 10% general fund spending increase for the coming fiscal year to shore up housing opportunities, childhood literacy and health care access, with additional payouts for electric vehicles purchases. Democratic Gov. Michelle Lujan Grisham on Thursday published the $10.5 billion budget plan for the fiscal year running from July 2024 through June 2025. It would increase general fund spending by roughly $950 million over current annual obligations. The Democratic-led Legislature develops its own spending plan in advance of a 30-day legislative session that begins Jan. 16. The nation’s No. 2 oil-producing state is harnessing a multibillion-dollar surplus driven largely by petroleum and natural gas production.