State revenues in fiscal 2014 are expected to total $5.9 billion, up $272 million from fiscal 2013 collections, according to a new fiscal forecast outlined last week to the Legislative Finance Committee.
Increased expenditures in fiscal 2013 authorized by the 2012 Legislature, including bolstering the state’s pension plan, will cost about $74 million. The remaining $198 million is available for appropriation by lawmakers in fiscal 2014.
Finance Secretary Tom Clifford and Revenue Secretary Demesia Padilla told the legislative workshop that state revenues are difficult to predict because they depend on volatile prices for oil and natural gas produced in the state.
New Mexico should have the capacity to issue approximately $224 million of energy severance tax bonds in fiscal 2013, the report said.
Revenues in fiscal 2013 will be almost $20 million than expected when the state budget was developed, but will be below fiscal 2012 collections due to a decline in energy prices.
Revenues in fiscal 2012 were $220 million more than expected. The state ended the year with $700 million of cash reserves, or approximately 13% of general fund spending in the year.