The Consensus Revenue Estimating Group has presented its financial forecast to the Legislative Finance Committee, projecting a total General Fund revenue of $13.9 billion for fiscal year 2027. This includes $105.7 million in new money for recurring spending and approximately $2.8 billion in one-time funding available for the 2026 legislative session.
Governor Michelle Lujan Grisham commented on the state's financial position, stating, "My administration has worked diligently to ensure New Mexico is in a sound financial position, and we’re seeing those results with continued record-breaking revenues." She also criticized federal-level failures, particularly under the Trump administration, which she believes have negatively impacted the state.
The forecast anticipates a reduction in corporate income tax revenue due to the federal budget bill enacted in July (H.R.1), which expanded deductions that corporations use to reduce taxable income. This change is expected to decrease New Mexico's corporate income tax revenue by $204.7 million in FY26 and $211.4 million in FY27.
Taxation and Revenue Department Secretary Stephanie Schardin Clarke noted that despite challenges such as federal tax changes and global economic conditions, "New Mexico remains in an incredibly strong position to weather this storm."
The State Land Office is projected to collect $362.6 million more than usual for FY26, helping offset some of the downward revisions in revenue projections. General Fund reserves are expected to remain robust at 31.2 percent of recurring appropriations, totaling $3.37 billion.
Department of Finance and Administration Secretary Wayne Propst emphasized the importance of responsible spending: "This forecast shows that our investments are generating strong returns for the state and helping offset federal funding shortfall."
The Consensus Revenue Estimating Group comprises economists from various departments including Finance and Administration, Taxation and Revenue, Transportation, and the Legislative Finance Committee.
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