Some gas and oil revenue to be reinvested

Albuquerque, NM (KKOB) — On Friday Gov. Lujan Grisham signed Senate Bill 26, which serves to reinvest some of the state’s oil and gas windfall. SB 26, sponsored by Sen. Bobby Gonzales, will automatically set aside excess oil and gas revenues and send them to the “Severance Tax Permanent Fund”. Doing so will allow those excess revenues to earn a projected average return of 5.7% in the Severance Tax Permanent Fund instead of making them available for immediate spending in the General Fund. Gonzales saying, “Even though current oil and gas revenues are high in New Mexico, our state economists predict they will start declining in the next 8 to 12 years.”