New Mexico general fund to hit record $14.8 billion

FOR IMMEDIATE RELEASE

Contact: Michael Coleman

Office of the Governor

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August 26, 2026

New Mexico general fund to hit record $14.8 billion

Reserves remain among the strongest in state history

FARMINGTON ─ Governor Michelle Lujan Grisham caps a historic era of growth and investment as New Mexico is projected to bring in $14.8 billion in General Fund revenue in Fiscal Year 2028, leaving $924 million in "new money" available for lawmakers in the 2027 legislative session.

The Consensus Revenue Estimating Group presented the forecast to the Legislative Finance Committee in Farmington on Wednesday.

"New Mexico planned for this by building reserves when times were good and investing in programs that meet help improve the lives of New Mexicans, including universal child care, expanded health care access and enhanced educational opportunities," said Governor Michelle Lujan Grisham. "We made sure that the next administration inherits a state that's financially sound."

General Fund reserves are expected to end Fiscal Year 2026 at 40.4% of recurring appropriations - or $4.4 billion. This figure reflects a deliberate strategy pursued throughout the Lujan Grisham administration to bank oil and gas windfalls into permanent, interest-generating trust funds rather than treating them as a one-time spending opportunity - a hedge against the volatility that has defined previous boom-and-bust cycles in New Mexico's budget.

"This administration has put New Mexico in a position of strength with historic revenue and strong reserves," said DFA Secretary Wayne Propst. "The forecast gives the state a wealth of options heading into the 2027 session. Now DFA's job is to continue helping agencies put these dollars to work in ways that benefit New Mexicans for years to come."

The revenue estimate has been revised upward from the previous forecast by $619 million for Fiscal Year 2027 and by $302 million for Fiscal Year 2028. Revenue is expected to grow by 3.8% in Fiscal Year 2027 and 1.5% in Fiscal Year 2028.

Strength across all of New Mexico's major revenue sources drove today's upward revisions. Personal and corporate income tax projections rose by $380 million, while general and selective sales tax projections rose by $166 million for Fiscal year 2027.

"New Mexico's revenue outlook continues to show strength and stability, reflecting a resilient economy despite the challenges facing New Mexico consumers and global economic headwinds," said Taxation and Revenue Secretary Stephanie Schardin Clarke.

The state's Consensus Revenue Estimating Group includes economists from the Departments of Finance and Administration, Taxation and Revenue, and Transportation, and the Legislative Finance Committee.