Another state revenue report and another upside explosion.

That's old hat now as the oil boom in the Permian Basin in SE NM blossoms even more and as higher inflation makes everything cost more so the taxman takes in more cash.

But what a startling mountain of cash it continues to be. The bean counters at the Legislative Finance Committee now say the budget for the year that ends July 1 will see a whopping $442 million more revenue than previously thought. And, an early childhood trust fund that sops up some of the excess oil royalties is now predicted to hit a stunning $4 billion in just two years. 

That doesn't include the billions now in the general fund reserve and a tax stabilization fund that also takes in energy revenue. 

These massive revenue inflows demand big ideas. We aren't getting anywhere near enough of them but some are trickling in. 

LFC Director David Abbey proposes establishing endowments to create revenue streams for some programs to free the state from worry over a downturn in oil prices, An example is the Opportunity Scholarship fund that pays tuition and fees for NM college students and soon could cost $100 million a year. An endowment could supplement those costs over the long-term. 

We've discussed going the Alaska way here and pushing out annual checks to taxpayers from the oil gusher. The rebate checks that the Governor did not jump for joy over when introduced will total $500 for individuals and $1,000 for two income households this year. That looks downright cheap in light of the mammoth surpluses and higher inflation. Those rebates could now easily be doubled. It makes more sense as gas goes over 4 bucks a gallon and rents are being raised in the ABQ metro at a clip of $300 a month or more.

House Appropriations Committee Chair Patty Lundstorm wants to look at abolishing the personal income tax as other states have. She frets over the top rate of 4.9 percent, but a better start would probably be eliminating the tax for households with income under $60,000 and then tackle the top bracket. 

The time for reforming the more complicated gross receipts tax--long criticized as a job killer and business inhibitor--appears to have finally come in this new financial era. That sweeping project will require firm gubernatorial leadership.

The massive surpluses have made budget management nearly irrelevant on the '22 campaign trail. The state never--that's never--has enjoyed a horn of plenty like this. However, inflation remains a problem and with it an opportunity for the GOP as they try to tie national Dem policies to the state election. 

Leading GOP Guv candidate Mark Ronchetti has come with a new TV ad that has him saying he will "take on the Biden administration and unleash New Mexico energy."

But New Mexico energy is more than unleashed, it's running like a wild horse. So much so that the state recently became the second largest oil producer in the USA and another record is expected in '22. That's even as the Biden administration temporarily suspended oil and gas leases and drilling permits on federal lands. The suspension has had minimal impact as the many current leases are more than enough to keep the industry cranking out the black gold at extraordinary levels. And as mentioned at the top m, state oil revenue is out of this world. 

Candidates can get wrapped up and think the world revolves around them but a recent poll conducted in late April and early May in the race for the Dem nomination for attorney general shows how hard it can be to build name ID.

The SurveyUSA poll shows a big 38 percent of voters still undecided in the contest between State Auditor Brian Colón and BernCo District attorney Raul Torrez, despite both being high profile figures in the party. 

The race appears wide open, according to the poll, with Torrez leading 34 to 28 percent (MOE plus or minus 5.7%). The candidates have stepped up their advertising since that survey so the large undecided is on its way down. Where it is falling adds more excitement to one of the few competitive statewide Dem races on the June 7 primary ballot.

Patel

One of those Dem contests that doesn't seem very competitive is for the the nomination for the southern congressional seat held by GOP Rep. Yvette Herrell. 

Former Las Cruces City Councilor Gabe Vasquez is the heavy favorite but political unknown and physician Darshan N. Patel is no slouch. 

Vasquez, backed by US Sen. Martin Heinrich and most of the Dem establishment, is often described as a progressive candidate but Patel is the same and in one important instance wearing that label brighter than Vasquez.

First, Patel, 35, who works at a hospital in Lovington and lives in Hobbs, describes himself this way:

Now the dividing issue from the ABQ Journal questionnaire:

Patel responds:

Vasquez

Vasquez says:

Patel pulls no punches but Vasquez, perhaps positioning himself for a moderate approach in the fall election, pulls back from the progressive view. Is that view congruent with the many environmental supporters of Heinrich and Vasquez or is Patel more in touch with those primary voters?