THE FALLING PRICE OF CRUDE OIL MEANS CHEAPER GASOLINE, BUT IT COULD ALSO HAVE A NEGATIVE IMPACT ON THE STATE BUDGET. JOHN ARTHUR SMITH, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE, SAYS FOR EVERY ONE DOLLAR DROP IN THE PRICE OF OIL, THERE'S A SIX MILLION DOLLAR LOSS IN OIL TAX REVENUE FOR NEW MEXICO.
HE SAYS IF THE SITUATION IS SUSTAINED, THE STATE COULD BE FACED WITH A REVENUE ADJUSTMENT OF 70-MILLION TO 80-MILLION DOLLARS.
BUT SMITH SAYS THEY HAVE THE RESERVE FUND TO FALL BACK ON, WHICH TOTALS ABOUT 600-MILLION DOLLARS. HE SAYS ANOTHER REVENUE FORECAST WILL COME OUT IN A FEW WEEKS, AND IT WILL REFLECT THE LOSS IN OIL TAX MONEY.
