Options for Managing Oil and Gas Revenue Volatility to RSTP Meeting
State government revenues are highly sensitive to price changes. A $1 change in oil prices if sustained over a year changes state General Fund revenue by $3.5 million. A 10-cent change in natural gas prices changes General Fund revenue by $10.8 million. In addition to these direct revenue effects, energy prices affect broad-based revenues like Gross Receipts Tax, Individual Income Tax and Corporate Income Tax through their effects on the state’s economy. The New Mexico Tax Research Institute (NMTRI) presents here a discussion of the state’s options for managing energy revenue.
2008 Holiday Retail Sales Forecast: In the Bleak Midwinter
The 2008 holiday season looks to be the worst in over 15 years. The current economic conditions and the financial difficulties facing consumers will make for a very unmerry Christmas for retail sales. Or at least so says Bruce Huhman, our resident retailing expert. Bruce's forecasts last Christmas Season were uncannily accurate. Can he repeat his spot on performance this year? You may not want him to when you see his gloomy forecasts.
While the rest of the nation threats over the Financial Meltdown, the biggest issue in New Mexico is the fall in oil and gas prices. These are down nearly $44 and $3 respectively from there recent peaks. While consumers will benefit, tax payers will feel the pinch as this is likely to eliminate $400 to $500 million from the general fund.