Pub. 18 2021 Issue 4

8 JOHN W. ANDERSON EXECUTIVE VICE PRESIDENT NEW MEXICO BANKERS ASSOCIATION EXECUTIVE VICE PRESIDENT’S MESSAGE VISIT OUR WEBSITE AT: NMBANKERS.COM Much of the state’s revenue windfall is due to record high oil production and high oil prices, in addition to improving economic activity in retail and some other sectors. T he 2022 Legislature will get underway on Tuesday, Jan. 17, for 30 days. Although this session will primarily be devoted to budget and revenue matters, we anticipate there will likely be legislation introduced that will be of concern to our industry and other bills that we can support. In August, revenue estimates released by executive and legislative economists projected legislators could have $1.4 billion in new money available for the next budget year starting in July 2022. The new money is calculated as the difference between expected revenue and the state’s current $7.4 billion budget. The revenue total does not include the $1.1 billion in federal funds from the American Rescue Plan Act. The New Mexico Supreme Court recently ruled that the governor cannot spend those funds without legislative approval. Consequently, those federal dollars will likely be included in the state budget bill for expenditure in the next state fiscal year. Although much of those plans were appropriated by the legislature during the December special session of the legislature. In late November, state economists announced revenue levels were approximately $30 million greater than the August forecast. Much of the state’s revenue windfall is due to record high oil production and high oil prices, in addition to improving economic activity in retail and some other sectors. Higher than expected personal income tax collections also added to the robust revenue picture. 2022 LEGISLATURE GETTING UNDERWAY — MONEY, MONEY, MONEY