New Mexico: $485 million in “new money” expected next session

As Dan Boyd of the Albuquerque Journal reports New Mexico’s string of budgetary largesse is expected to continue in the upcoming legislative session with $485 million in “new money.” As Boyd notes, “New money is the difference between projected revenue levels and current total spending.”

In other words, even with the budget having gone up by 70% under Michelle Lujan Grisham (and with lower oil prices) the State has plenty of revenues. This general fund revenue is separate from the $6 billion growth in permanent fund assets during 2025 alone.

Will New Mexicans see any tax reduction thanks to the latest annual budget surplus? Given the track record of this governor and legislature, we see tax reduction as highly unlikely, but would love to be surprised.