Pub. 15 2018 Issue 3

8 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S EXECUTIVE VICE PRESIDENT’S MESSAGE JOHN W. ANDERSON, EXECUTIVE VICE PRESIDENT New Mexico Bankers Association SPENDING FRENZY In 2019, the state will have a new governor and many new legislators who will have the task of developing a prudent plan for expenditure of new money. Remember, we have a volatile revenue stream that relies heavily on the markets fluctuations of the oil and gas industry. “A government which robs Peter to pay Paul can always depend on the support of Paul.” - George Bernard Shaw N ew Mexico is in the chips. Re - curring general fund revenues increased in fiscal year 18 (July 1, 2017-June 30, 2018), growing 14.6 percent, a growth unseen in more than ten years. Recurring revenues for fiscal year 18 (July 1, 2018-June 30, 2019) are estimated at $7.3 billion, an increase of $536 million from fiscal year 18. Recurring revenues for fiscal year 20 are estimated at $7.5 billion, or an increase of 3 percent from fiscal year 19 (July 1, 2019-June 30, 2020). The really good news is that the state is projected to have $1.2 billion in “new” money for the next fiscal year. New money defined as projected recurring revenue for the following fiscal year less current year re - curring appropriations. Most of this windfall is due in large part to surging oil production in the Permian Basin in Southeastern New Mexico. In 2019, the state will have a new governor and many new legislators who will have the task of developing a prudent plan for expenditure of new money. Remember, we have a volatile rev - enue stream that relies heavily on the markets fluctuations of the oil and gas industry. The issues that most assuredly should be addressed in 2019 include: the unfunded state pension system, the judicial mandate that the