Legislative Finance Committee

Through January and before the start of the U.S.-Iran conflict, general fund revenues were tracking 2.3 percent above the December forecast, with strong corporate income tax collections and general sales taxes more than offsetting unexpectedly low personal income tax collections.

New Mexico spent $520 million on tax breaks for economic development in FY25, but only some of the approaches paid off and the overall impact was limited.

Three years into the largest Medicaid rate investment in state history, the state does not have the data to determine whether access is improving.

While overall enrollment in Medicaid-covered behavioral healthcare has decreased, those still enrolled are using more services at a higher cost.

About 32 thousand youth in New Mexico are neither working nor in school, costing the state an estimated $623 million a year.

New Mexico is in the top five of states for revenue volatility, largely because of its reliance on the oil and gas industry, but LFC staff are working on a solvency playbook to prepare for potential downturns.

With final data through November and preliminary data through February, general fund recurring revenues are tracking $320.6 million, or 2.4 percent, above the latest forecast, a reversal from low tracking through the beginning of the fiscal year.
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LFC and the Office of the State Auditor have issued a joint advisory to state agencies highlighting limits on spending.