New Mexico’s Consensus Revenue Estimating Group (CREG) has projected $14.11 billion in General Fund revenue for fiscal year 2027, marking an increase of $485 million over the current year’s budget. The projection was shared at a Legislative Finance Committee meeting in Las Cruces.
The estimate also forecasts that reserves for fiscal year 2026 will reach $3.94 billion, representing 36.4% of recurring appropriations. Additionally, CREG expects $390 million in extra revenue from fiscal year 2025 to be available for lawmakers to allocate during a special session.
“New Mexico’s strong revenue projection announced in Las Cruces today is good news at a time when the federal government is ruthlessly slashing revenues that states have historically relied on,” said Gov. Michelle Lujan Grisham. “Today’s announcement that our state can expect nearly a half-billion dollars in additional revenue will help us protect the essential services for New Mexicans that Washington has abandoned.”
The latest revenue estimate takes into account projections by state economists that the Trump budget bill (H.R. 1) will reduce state revenue by about $206 million annually between fiscal years 2026 and 2030. The anticipated reduction stems from several provisions: $41 million due to changes in standard deductions, $5 million from ending taxes on certain car loan interest, $70 million from removing the SALT deduction limit, $44 million from federal business tax changes, and $46 million related to other non–income tax effects. CREG expects H.R. 1 to slow general fund growth during this period.
“Despite the external challenges New Mexico will face in the years ahead, our state has the resources to remain stable and on solid footing,” said DFA Sec. Wayne Propst. “Our healthy additional revenue provides the capacity for a special session, giving lawmakers the ability to address funding gaps in essential services that we’re already seeing.”
“New Mexico’s economy remains resilient despite challenges presented by federal actions. State policymakers have put New Mexico on a financial bedrock to endure for decades to come,” said Taxation and Revenue Sec. Stephanie Schardin Clarke.
CREG is made up of economists from several state agencies including Finance and Administration, Taxation and Revenue, Transportation, as well as the Legislative Finance Committee.
