Report finds the oil and gas industry has multibillion-dollar impact on budget and schools

February 1, 2018

New Mexico's general fund and schools are recipients of $1.743 billion from FY 2017, thanks to a boom with instate success in the oil and natural gas industries.

The impact is a 2 percent bump from last fiscal year as $1.635 billion came from the industry. FY2017 was the first year in four years that there was an increase in impact. The state's energy sector is rebounding from a 4 percent drop from FY2015 to FY2016.

A release from the New Mexico Oil and Gas Association, citing a report by the New Mexico Tax Research Institute, said $934 million of the new oil and gas impact goes to education — $711 million distributed among public and charter schools and $223 million for higher education institutions. In Bernalillo County, public school districts in Albuquerque received $175,480 and the University of New Mexico's main campus hauled $55,127 directly from the oil and gas industry.

“We are turning an economic corner because of a surge of activity and investment in the Permian Basin and New Mexico’s attractive and balanced business environment,” said Ryan Flynn, executive director of the New Mexico Oil and Gas Association, in statement. “We can expect these trends to hold up for the foreseeable future if New Mexico remains a favorable place for oil and natural gas producers to do business.”

Robert McEntyre, director of communications for New Mexico Oil & Gas Association, said the state's general fund is roughly made up of 30 percent of oil and gas revenue, but could slightly increase "if market prices can hold up and production continues to grow like it has."

During Gov. Susana Martinez's State of the State address last month, the governor cited the crash devastated the state's budget. There was...

See entire article at Albuquerque Business First.

 

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