Unspent capital funds in New Mexico hit $5 billion

New Mexico lawmakers are mulling changes to capital financing programs as the amount of untapped funding allocated to projects from state appropriations or raised through bond issues is at a historically high level due to rising construction costs and a dearth of construction workers. 

The state’s Legislative Finance Committee this week reported an estimated , which was signed into law in March by Democratic Gov. Michelle Lujan Grisham, caps net oil and gas emergency school tax and federal mineral leasing revenue allocated to the general fund at fiscal 2024 levels starting in fiscal 2025. Revenue above the cap but below a five-year moving average will be transferred to the Severance Tax Permanent Fund.