NM tax revenue IS volatile (because we rely on oil/gas AND policymakers haven’t diversified it)

According to a recent Pew Center report New Mexico has very volatile tax revenues when compared to other states. That report was discussed in some detail in this Center Square story. New Mexico had the fourth highest volatility in tax revenue collection over the past 20 years.

What can be done? At the Rio Grande Foundation we have argued regularly for economic diversification through the introduction of more economic freedom, but Democrats who control the Legislature and Governor’s mansions have stood steadfastly against serious economic reforms including, but not limited to, gross receipts tax reform.

The following chart taken from the Pew chart directly shows that NM has the greatest volatility among its neighbors.

 

Print Friendly, PDF & Email

2 Replies to “NM tax revenue IS volatile (because we rely on oil/gas AND policymakers haven’t diversified it)”

  1. The following shows New Mexico’s political history for 1931-2020, or 90 years. We know where the state resides on good and bad lists, nationally, from economics to education. There has to be a reason, so I went looking, and this is one result.
    This shows clearly who governed these 90 years, and who is responsible for the state we are in.

    democrat held

    governor 60 of 90 years / 66.7 %

    house 84 of 90 years / 93.3 %

    senate * 84 of 90 years / 93.3 %

    held all 3 54 of 90 years / 60.0 %
    at one time

    held Gov and 60 of 90 years / 66.7 %
    at least one
    legis body

    held both 78 of 90 years / 86.7 %
    legis bodies

    republican held

    governor 30 of 90 years / 33.3 %

    house 6 of 90 years / 6.7 %

    senate * 4 of 90 years / 4.4 %

    held all 3 Never / 0.0 %
    at one time

    held Gov and 4 of 90 years / 4.4 %
    at least one
    legis body

    held both Never / 0.0 %
    legis bodies

    *(The senate was evenly split, 1987, 1988, or 2.2% of the 90 years)

    Important to note: No democrat governor in New Mexico ever has faced republicans in both senate and house, nor has a republican governor ever had the support of senate and house concurrently.

    Question: Should we wish a single-party state? We appear to have one; not a good plan.

    Wayne Grinnell
    12520 Canyon de Oro
    Las Cruces
    575.521.9123

    Mr. Grinnell is a Democrat of over 50 years
    (A Jeffersonian Democrat, and a firm believer in our Constitutional Federal Republic)

    Thanks to the Rio Grande Foundation for display data (1931-2018), checked and verified.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.