New Mexico Economic Development and Revenue Strategy
The Bottom Line and the Need to Act
◆ However, recent windfall oil and gas revenues create an unprecedented opportunity
for the State to reduce the likelihood of a future revenue slump by investing in economic
and revenue resilience through:
.
Restructuring the State tax system
• Diversifying the economy
.
Equalizing opportunity for all New Mexicans
·
Making the State more attractive for both residents and new investors
◆ New Mexico's policymakers have taken steps to segregate and invest some surplus
revenue when circumstances allow.
But alongside the many opportunities created by New Mexico's current revenue
surplus is an equally potent threat that policymakers will utilize non-recurring
revenue to offset cuts to recurring revenue sources, leaving New Mexico even more
vulnerable to the potentially catastrophic consequences of the next inevitable downturn
and the risk that next time, there might not ever be a full recovery back to trend.
-
© PFM
32
32View entire presentation