New Mexico Paradox: Really Poor And Really Rich

[TexasTowelie]

State permanent funds hit record high

The New Mexico State Investment Council reported a $2.1 billion boost in the state’s permanent funds for the fiscal year that ended June 30, driving the total value of the funds to a record $22.3 billion.

That, in turn, means an extra $61 million in new money will flow into the state budget for FY 2018, now underway.

“This is welcome news for New Mexico taxpayers,” Gov. Susana Martinez said in a prepared statement. “… Results like these should further encourage us to keep doing all we can to protect these funds for future generations of New Mexicans.”

The Land Grant Permanent Fund and the Severance Tax Permanent Fund, which together account for about 95 percent of New Mexico’s permanent funds, both showed substantial growth in FY 2017, fueled by a bullish stock market and improvement in oil prices since last year.

Read more: https://www.abqjournal.com/1046983/state-permanent-funds-hit-new-high.html

[Warpy]

1. NM is a weird state. In a fit of uncommon good sense many years ago,

money from oil, gas and mineral leases were all to go into a permanent fund, needing legislative approval to tap into in a fiscal emergency, the interest on the fund padding the budget.

Enter Susana la Tejana Martinez, our current GOP governor, who decided the state didn't have enough money to fund higher education or pay the legislature, among other things. Her line item vetoes are now being overturned by the courts, but damage has been done. I can only think she must've been plastered when she went through the budget and crossed things out. The state is a lot more flush than she indicated it is.

So it's an incredibly poor state, but solvent thanks to the wisdom of former leaders. It's nearly impossible to get a dime taken out of the permanent fund through the lege, last time was after the crash and they needed to pay teachers. It was also the only time since I've been here.