The latest revenue projections for fiscal 2014 indicate New Mexico will have $283 million of new money that can be appropriated or expended for tax cuts by the 2013 Legislature, the Department of Finance and Administration told lawmakers last week.
The latest forecast predicts that the state will collect $5.9 billion in taxes and fees in fiscal 2014, which is $283 million more than the current budget.
However, New Mexico has already agreed to boost by $72 million its annual contribution to state employee pension plans. Additional funding is also expected for the Medicaid program.
Gov. Susana Martinez is expected to seek a reduction in the state’s corporate income tax when lawmakers return to Santa Fe in January.
A report to the Legislative Finance Committee last week said the state can issue $222 million of 10-year revenue bonds next year supported by production taxes on oil and natural gas.
Martinez in March vetoed $23 million of projects approved by lawmakers and financed by $130 million of severance tax bonds.
The amended program allocated $107 million of proceeds to 208 projects. New Mexico ended fiscal 2012 with a $755 million surplus.