On Dec. 11, 2023, the New Mexico Taxation and Revenue Department announced that state General Fund revenues are projected to experience growth in fiscal year 2025 at a slower pace than in recent years. The projection outlines a 2.2% growth for FY25, generating $3.48 billion.

According to a press release, FY23 anticipates a 10.2% revenue increase, with strong reserves reaching 47.3% of appropriations, or $3.98 billion, by the fiscal year's end.

Forecasts project General Fund recurring revenues surpassing $12.7 billion for FY24 and $13 billion for FY25. While historically high, these revenues are expected to moderate due to a decline from the 2022 price peak.

Stabilization in wages and spending will impact Gross Receipts Tax and Personal Income Tax revenue. The forecast considers recent historic tax cuts, including a Gross Receipts Tax rate reduction and Social Security benefit exemptions. 

New Mexico has taken steps to enhance budget protection through trust funds and increasing distributions to reserves. Projections show the Early Childhood Education and Care Fund will reach $5.5 billion by the end of 2023.

“The latest forecast indicates New Mexico’s finances remain in very good shape with strong reserves,” said Taxation and Revenue Secretary Stephanie Schardin Clarke, according to the press release. “We’ve been able to provide significant tax relief in the past several years while also investing in the state’s future and ensuring the state’s financial future is secure.”

The Taxation and Revenue Department of New Mexico is responsible for overseeing and administering tax and motor vehicle-related laws in the state. the department ensures the implementation of tax laws and regulations to support government functions and public services. The agency also manages motor vehicle-related matters, including registration laws, contributing to the overall fiscal and regulatory framework of the state, according to the About webpage provided by the New Mexico Taxation and Revenue Department.