Staff Reports
LAS CRUCES, N.M. — New Mexico’s Consensus Revenue Estimating Group is projecting $14.11 billion in General Fund revenue for fiscal year 2027, an increase of $485 million over the current year budget.
The estimate, announced at an Aug. 19 meeting of the Legislative Finance Committee in Las Cruces, projects healthy FY26 reserves of $3.94 billion or 36.4% of recurring appropriations. The CREG also projects $390 million in additional revenue from FY25 that lawmakers may appropriate during a special session.
“New Mexico’s strong revenue projection announced in Las Cruces today is good news at a time when the federal government is ruthlessly slashing revenues that states have historically relied on,” Gov. Michelle Lujan Grisham stated in an Aug. 19 press release. “Today’s announcement that our state can expect nearly a half-billion dollars in additional revenue will help us protect the essential services for New Mexicans that Washington has abandoned.”
The revenue estimate incorporates state economists’ projection that the Trump budget bill (H.R. 1) will reduce state revenue by approximately $206 million annually between FY26 and FY30. This reduction is driven by several provisions, including $41 million from standard deduction changes, $5 million from the elimination of tax on certain car loan interest, $70 million from lifting the SALT deduction limit, $44 million from federal business tax changes, and $46 million from other non–income tax impacts. Overall, the CREG anticipates that H.R. 1 will act as a drag on general fund growth during this period.
“Despite the external challenges New Mexico will face in the years ahead, our state has the resources to remain stable and on solid footing,” Department of Finance Sec. Wayne Propst said. “Our healthy additional revenue provides the capacity for a special session, giving lawmakers the ability to address funding gaps in essential services that we’re already seeing.”
The state’s CREG includes economists from the Departments of Finance and Administration, Taxation and Revenue, Transportation and the Legislative Finance Committee.
