New Mexico’s Consensus Revenue Estimating Group (CREG) has projected General Fund revenue of $14.11 billion for fiscal year 2027, marking an increase of $485 million over the current year’s budget. The announcement was made during a Legislative Finance Committee meeting in Las Cruces.
The CREG also reported that reserves for fiscal year 2026 are expected to reach $3.94 billion, representing 36.4% of recurring appropriations. In addition, lawmakers may have access to $390 million in additional revenue from fiscal year 2025, which could be appropriated 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,” said Gov. Michelle Lujan Grisham. “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 latest estimate includes projections by state economists regarding the impact of the Trump budget bill (H.R. 1), which is expected to reduce state revenue by about $206 million annually between fiscal years 2026 and 2030. This reduction comes from several provisions: changes to standard deductions ($41 million), elimination of tax on certain car loan interest ($5 million), lifting the SALT deduction limit ($70 million), federal business tax changes ($44 million), and other non–income tax impacts ($46 million). The CREG anticipates that H.R. 1 will slow 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,” said DFA Sec. Wayne Propst. “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.”
“New Mexico’s economy remains resilient despite challenges presented by federal actions. State policymakers have put New Mexico on a financial bedrock to endure for decades to come,” said Taxation and Revenue Sec. Stephanie Schardin Clarke.
The CREG is composed of economists from several departments including Finance and Administration, Taxation and Revenue, Transportation, and the Legislative Finance Committee.
