New Mexico House Bill HM72

New Mexico 2023 Regular Session

• Introduced: 2/25/23

Caption

Fiscal Year 2034 Budget Deficits

Impact

The memorial foresees a scenario where New Mexico's reliance on oil and gas revenues could lead to significant budget shortfalls starting in fiscal year 2034. The proposed study should include forecasts of these budget deficits, as well as detailed estimates of potential revenue increases from alternative sources. This proactive approach aims to equip lawmakers with the necessary information to make informed decisions on how to achieve fiscal stability without depending on dwindling oil and gas revenues.

Summary

House Memorial 72 aims to address the potential fiscal challenges the state of New Mexico may face by the year 2034 due to decreasing oil and gas revenues. Introduced by Representatives James G. Townsend and Larry R. Scott, the memorial requests the Department of Finance and Administration to conduct a comprehensive study on the anticipated budget deficits and suggest strategies for financial sustainability. Given that a substantial portion of state revenue comes from oil and gas, the bill acknowledges the pressing need for alternative revenue sources amidst declining consumption of these fossil fuels.

Contention

Critics of the dependency on oil and gas revenues might argue that the state has been remiss in preparing for an energy transition, particularly as national trends indicate a shift towards renewable energy sources. Therefore, the discussions generated by HM72 could highlight the need for broader economic reforms and diversification efforts within the state. By requiring the Department of Finance and Administration to assess future revenue projections and strategies, the memorial could serve as a catalyst for more significant debates on how New Mexico should position itself in an evolving energy landscape.