New Mexico announced Friday that it would make $ 1.6 billion in gross domestic product (GDP) for the next fiscal year, mostly in oil and natural gas production, the Associated Press reported.
The state of North Dakota surpassed North Dakota this year, producing the second largest oil field in the country with a revenue of $ 1.44 billion from the oil and gas industry alone. Only Texas produces much.
The forecast is higher than $ 200 million in August, and government lawmakers are expected to discuss the full budget for the fiscal year July 1, 2022.
Democrat Michel Lujan Grisham also proposed a 7 percent pay rise for public school staff and a higher salary for teachers throughout their careers. She made a $ 100 million proposal to hire state and local police departments.
However, economists from the regional government have warned that the current financial forecast is based on global oil prices, which could have an impact on Delta COVID issues as well as Omicron’s recent acquisition.
Other regional officials say that while some sectors of the economy are thriving, success is not always seen by the region’s residents.
“We still have a large percentage of our people in a difficult financial situation,” said Stephanie Cardin Clark, secretary of tax and revenue. “We see the stock market doing well … I want to not forget that there is a general economy that does not register those benefits.”
For more information on the Associated Press, see below.
The petroleum sector is largely funded by New Mexico’s fertile Permian Basin oil and gas production.
Natural gas production in New Mexico also accelerated.
New Mexico Economy It will recover two-thirds of the jobs lost when the outbreak began in 2020, Clark said.
Many federal residents’ incomes have declined as federal incentives have run out.
New Mexico officials say more than $ 600 billion in federal aid has not yet been set aside to help employers pay more than $ 1 billion in government unemployment insurance.
Lujan Grisham is urging lawmakers to take immediate action to justify that federal relief – by requesting special budget sessions, which begin Monday and extend indefinitely before the end of the year.
Democrat George Munoz, chairman of the Democratic Senate Finance Committee, said he wanted lawmakers to consider investing in the epidemic, which would take time to investigate infrastructure projects and provide better education and training for New Mexico’s workforce.
New Mexico’s political differences highlighted federal energy policy on Friday, with lawmakers and economists questioning the state’s oil sector in the state’s leading budget writing committee.
Hobbes Republican Sen. Gay Kernan warned that if the United States government were to ban the sale of oil leases on public lands, future government revenue would be in jeopardy.
The state expects to receive $ 1.44 billion in annual revenue from oil and natural gas production on federal land for royalties and bonuses.
“I think it’s a big accident on the road,” Kernan said. ይመስለኛል I think we can see the impact.
In November, the Biden administration proposed to revise the country’s oil and gas lease program, restrict access to energy development, and increase costs for oil and gas companies to drill on public land and water.
The state is expected to complete the current fiscal year by June 2022 with a total budget of $ 2.5 billion – equivalent to 35% of annual spending.
As in 2017, New Mexico has temporarily reduced spending on public colleges and universities by lowering oil prices and lowering government revenues.
New Mexico’s commitment to surplus profits is partly to write Medicaid coverage for low-income people.
At the time of the outbreak, program registration had increased and additional federal payments would expire in the spring of 2022.