New Mexico’s oil income investments now surpass personal income tax revenue

December 29, 2024

NEW MEXICO

Oil investment income tops personal income tax

SANTA FE — Efforts by New Mexico to save and invest portions of a financial windfall from local oil production are paying off as state government income on investments surpasses personal income tax collections for the first time, according to a new forecast on Dec. 9.

General fund income from the state’s two, multibillion-dollar permanent funds and interest on treasury accounts is expected to climb to $2.1 billion for the fiscal year between July 2024 and June 2025, surpassing $2 billion in revenue from personal income taxes.

The investment earnings are designed to ensure that critical programs — ranging from childcare subsidies to tuition-free college and trade school education — endure if oil income falters amid a possible transition to new sources of energy.

At the same time, legislators this year revised personal income tax brackets to lower taxes in the nation’s No. 2 state for oil production behind Texas.

The comments came at a legislative panel where economists from four government agencies announced an income estimate for the coming year.

Economists estimate the state will bring in a record-setting $13.6 billion in general fund income for the fiscal year that runs from July 2025 to June 2026, a 2.6% increase over the current period.

This year’s income bump leaves room for an additional $892 million in state spending in the coming fiscal year, a 7% increase, according to the legislature’s accountability and budgeting office. State income is forecast to exceed current bedrock annual spending obligations by $3.4 billion.

State fines gas processor record sum

SANTA FE — New Mexico environmental regulators on Dec. 6 issued a $47.8 million fine on allegations of excess air pollution at a natural gas processing facility in a prolific oil production region near the Texas state line.

The state Environment Department issued the sanctions including a cease and desist order against Houston-based Targa Resources at its processing plant near Jal, New Mexico, alleging permit violations and excess emissions of gases known to cause respiratory issues or contribute to climate change including ozone-producing pollutants.

Regulators say Targa has 30 days to respond and comply or request a hearing with the agency secretary.

Regulators also have ordered a series of corrective actions and improvements to the facilities that process gas for transmission by pipeline.

The sanctions are based on allegations of two permit violations, late reporting of emissions and an incomplete requirement for a root cause analysis of excess pollution.

The proposed air-pollution fine against Targa would be the largest in state history by the Environment Department, if upheld. The case also was referred to federal regulators.

ARIZONA

Lawsuit seeks to undo 15-week abortion ban

PHOENIX — Reproductive rights advocates sued Arizona on Dec. 3 to undo a 15-week abortion ban that conflicts with a constitutional amendment recently approved by voters to expand access up to fetal viability.

The American Civil Liberties Union, Planned Parenthood and the Center for Reproductive Rights filed the lawsuit in Maricopa County Superior Court on behalf of the local chapter of Planned Parenthood and two physicians, arguing the law interferes with pregnant Arizonans’ fundamental right to abortion and individual autonomy. It’s the first step in efforts to dismantle existing laws they say are too restrictive.

The Republican-controlled Arizona legislature approved the 15-week ban months before the U.S. Supreme Court overturned Roe v. Wade in 2022, but it didn’t go into effect until after. Democratic Attorney General Kris Mayes agreed not to enforce the 15-week ban while the lawsuit plays out, spokesperson Richie Taylor said Dec. 3.

Democratic Arizona Gov. Katie Hobbs said in a statement that the ban should be removed from the books.

The lawsuit also seeks to undo the ban’s enforcement mechanisms, which could lead to criminal charges against providers who knowingly or intentionally perform abortions beyond 15 weeks except in medical emergencies. Physicians who violate the ban could face suspension or revocation of their medical licenses.

The Nov. 25 certification of the general election opened the door for legal challenges to laws that conflict with the ballot measure, including a law that requires patients to have an ultrasound at least 24 hours before an abortion, with the option to view the image and hear an explanation of what it shows.

Reproductive rights groups signaled then that they would sue over the 15-week abortion ban.

“Clearly Planned Parenthood and ACLU and their allies have little regard for the life of an unborn child and the development of an unborn child,” said Cathi Herrod, president of the socially conservative Center for Arizona Policy. Herrod previosly said the group would seek to intervene where appropriate.

WYOMING

Bill could ban cellphones from classrooms

CHEYENNE — A ban on cellphone use in the classroom is quickly becoming a popular policy adopted by state legislators across the country — and Wyoming could soon be one of them.

At least 18 states have passed laws or adopted policies banning or restricting the use of cellphones in the classroom, according to an Education Week analysis published in June.

A bill headed for the 2025 general session, sponsored by Sen. Wendy Schuler, R-Evanston, would implement a statewide ban on cellphone use and smartwatches in the classroom during instructional time. The bill provides an exception for students who rely on their phone or smartwatch for medical purposes or as part of their Individualized Education Program.

Schuler told the Wyoming Tribune Eagle she usually avoids proposing any legislation that interferes with local control. However, several teachers and school district administrators told her they’ve faced backlash from parents when implementing any policy restricting phone use in the classroom, Schuler said.

A 2021 article published in ScienceDirect, an international source of medical and scientific research, found that smartphone use negatively impacted a student’s ability to learn efficiently. The article contained the results of 44 studies performed on a total of 147,000 students across 16 countries, including the United States.

Researchers concluded that smartphone addiction negatively impacted students’ learning and overall academic performance, as well as their skills and cognitive abilities.

However, many parents against cellphone bans argue they need to be in contact with their child during school, especially in the case of an emergency.

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