New Mexico Economic Development and Revenue Strategy
The State Should Explicitly Consider the Revenue Impacts of its Economic
Development Initiatives and Programs
◆ The State needs to address economic inequities as part of its overall revenue
strategy, too. A shift in strategy is important for New Mexico's people as well for its State
Budget.
• When New Mexicans earn more, their standard of living increases, and they pay more
in taxes and may have less need for State services.
The State should focus its economic development strategy on State revenue in addition
to employment. As noted earlier, this requires a focus not only on people who have
been left behind but also places that suffer from significant and persistent poverty.
• The State's evaluation of its economic development efforts currently focuses mostly on
job creation.
◆ But if economic diversification is going to help offset potential oil and gas revenue losses,
the State should pay more attention to the revenue consequences of the State's
economic development strategy, through strategic coordination on the front-end and
regular evaluation on an ongoing basis.
© PFM
29
29View entire presentation