Pub. 16 2019 Issue 2

Issue 2 • 2019 7 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S n EXECUTIVE VICE PRESIDENT’S MESSAGE continued on page 8 bank should employ. He estimates that 93% of all breaches could have been avoided by following his five-step approach. Donna Flynn, Certified Executive Coach, Skills Mastery Group, spoke of managing the trifecta: finding good people, keeping them and managing turnover. She discussed how certain companies are utilizing innovative ways to engage and manage younger employees. Finally, Joe Micallef, Growth Coach-Strategic Advisor, Bank Talent HQ, presented a most entertaining discussion on investing time, money and effort to develop a collaborative sales plan that captures the knowl- edge, experiences and ideas of your broader sales will not only produce a more focused sales effort but will inspire greater staff engagement across the bank. All of this year’s convention speakers were excellent and I would recommend them for any future meetings or seminars. During the final dinner and business session, the NMBA honored John Dowling, President Emeritus, Pinnacle Bank, Gallup in recognition of his extraordinary 50-year career in banking. John served as President of the New Mexico Bankers Association in 1995-1995 and as NMBA treasurer for 8 succes - sive terms. John has dedicated himself to his community espe- cially in McKinley County. John has served as a director of New Mexico Amigos, New Mexico First, Golden Apple Foundation, McKinley Development Foundation for Economic Development, Gallup Chamber of Commerce, Rehoboth-McKinley County Hospital, Western Health Foundation, Southwest Indian Foun- dation, Catholic People’s Foundation, and Rotary Club of Gallup where he founded the club’s Annual Scholarship Dinner. John also served his country as a 1st Lieutenant, U.S. Army Corps of Engineers where he received numerous awards and recogni- tions including the Bronze Star for service in Vietnam. As a final order of business, the NMBA recognized John Gulas, outgoing NMBA President, for the great job he did during his term in office. He never missed an NMBA meeting or event. He has great passion for the NMBA as noted in his comments to the audience during his farewell address and in his article, “The Year in Review” as contained in his edition of the New Mexico Bankers Digest. State Economic and Legislative Matters: State Revenues: Great news. In a June 24 Legislative Finance Committee (LFC) General Fund Revenue Tracking Report through March 2019, general fund recurring revenues were $729.2 million, up $153.1 million, or 26.6 percent from the same month a year ago. Recurring revenue collection for FY19 through March was $5.98 billion, up $1.36 billion, or 29.4 percent, from the same period a year ago. Due to strong revenues from gross receipts taxes and rents and royalties fueled by the oil and gas production boom, FY 19 general fund revenues are currently tracking nearly $290 million above the forecast. When including revenues from the emergency oil and gas school tax in excess of the five-year average, which flow to general fund reserves, revenues are tracking about $370 million above the forecast. The state was expecting a $1.2 million budget surplus for the fiscal year which ended June 30, but the LFC reve - nue report suggests the final surplus number will likely be greater than $1.2 billion. Preliminary data from the State Energy, Mineral and National Resources Department shows New Mexico oil production is up 46 percent in FY19 through March, or 67 million barrels. Natural gas production is up to 20.3 percent in FY19 through March, or 203.3 billion cubic feet. The December 2018 consensus forecast, which was completed amid sharp oil price declines, anticipated FY19 oil production would grow by 22 percent and natural gas production would grow by 8 percent. However, New Mexico rig counts did not respond to the sharp price drop in ways consistent with past declines. Active rig counts actually in - creased in the months following the price drop and currently remain in the triple digits. While an official state revenue estimate will be released in August, the state is seeing a positive employment trend. The state added 13,000 jobs between April 2018 and April 2019. The state’s largest employment gains in April were in the min - ing and construction sectors. The state also has job gains in education and health services.