Oil and Gas Industry in Turmoil, Budget Crisis in New Mexico, Special Legislative Session?

As I shared with you yesterday the New Mexico House GOP has called for a special session to deal with the budget crisis in the state. As I posted before, during and after the 2020 session, the Governor had a pie-in-the-sky budget! My goodness! When you plan your entire future on oil and gas money…….that is very, very foolish. When will New Mexico learn? When will we diversify our economy??? I have preached that for years and years, dating back to my KKIM Radio days! Both the Republicans and Democrats have failed this state in not diversifying our economy! The Republican Governor thought Hollywood would save the day!!! ABQ Journal Story on Collapse of Oil and Gas Revenue

Now, a person who is put in charge as a manager must be faithful. 1 Corinthians 4:2

God has given each of you a gift from his great variety of spiritual gifts. Use them well to serve one another. 1 Peter 4:10

We would be best if we dropped this partisan politics stuff and get together, work together, this hate is getting us nowhere. Both parties are at fault and here in New Mexico we have no better evidence than this oil and gas crisis. ITS CALLED DIVERSIFICATION! Stop looking at the politics in everything and see the truth through the eyes of God. The leaders in New Mexico have failed to to good solid planning over the years.They have failed to be good stewards of God has given us.

A good farmer can tell you all about diversification. It may be good to have a Bible and also a dictionary at the State Capital. New Mexico is still aborting God’s babies. You are very foolish if you think God is going to bless this state while we allow His babies to be killed, no high school pep rally will help with this blood shed taking place in our own backyard. Many in this state and country have more concern for their own political hide and bank account.

From Yesterday:

FGGAM NEWS just received this news release from NM House GOP:

House GOP Calls on Governor to Convene a Special Legislative Session to Proactively Address the Looming State Financial Crisis

Santa Fe, NM– New Mexico’s budget is experiencing major upheaval from the recent oil market crash and the response to COVID-19. State revenues are plummeting, and many small businesses and their employees are facing untold consequences as New Mexico is on the brink of a major economic and fiscal crisis.

House Republican Leadership, in a letter delivered today, are strongly urging the Governor to take extraordinary action to reconvene the Legislature to ensure the current and next year’s budgets are balanced and to provide relief to the families and businesses in New Mexico that are being negatively impacted by the efforts to contain the spread of COVID-19.  With oil and gas revenues accounting for 45 percent of current state revenues, the dramatic decline in oil prices could result in a budget shortfall of $500 million to $1 billion. For every dollar the price of oil drops in the markets, New Mexico revenues are reduced on average by $22 million. Oil prices have been hovering around $22 per barrel in recent days, which is $30 per barrel lower than the original price per barrel projections the Legislature used in building New Mexico’s record-breaking operating budget in February.

The House Republican Leadership is asking the Governor to take immediate action to quickly and proactively produce for New Mexicans a balanced budget and assist those most affected by restrictions being placed on New Mexico’s economic activities by calling a Special Legislative session:

1. Convene the revenue consensus group of various executive and legislative branch economists to develop updated state revenue estimates for both Fiscal Years 2020 and 2021.
2. Establish a working group of DFA staff, LFC staff, and legislative leaders to explore specific areas within the state budget where budget savings and fund sweeps can be made quickly for the current fiscal year.
3. Develop a new budget plan for Fiscal Year 2021 which is based on limiting state spending to meet those agreed upon new revenue estimates.
4. Due to the uncertainty whether a recession will occur this year and not knowing how long oil prices will stay depressed, commit to preserving state reserves at adequate levels in order to keep these reserves available for a potentially longer-term budget crisis that may extend beyond Fiscal Year 2021.  This will also help to protect our bond rating going forward
5. Closely monitor the actions of the President and Congress in enacting a likely economic stimulus package and develop a comprehensive plan which blends both state and federal fiscal actions to ensure New Mexico’s immediate economic problems are mitigated as best as possible.
6. Consult with small business leaders across the state to determine the current economic challenges these businesses are experiencing and develop a detailed proposal to provide needed financial assistance to ensure these employers can resume their normal activity once the COVID-19 crisis has passed.

House Republican Leadership suggests the following budget considerations to protect the future for New Mexico:

• Holding spending to 2020 levels until new revenue estimates can be established, at which time we can budget spending to match these new revenues.
• Roll back new funds and programs that didn’t exist prior to the 2020 budget session before considering cuts to programs that New Mexican’s currently rely on.
• Match the federal government’s accommodations to allow tax filers up to ninety days to pay their tax bills without penalty or interest.