From rags to riches. So goes the story of the New Mexico treasury.

We're going from years of austerity to what will be years of plenitude that could conceivably change the long-term outlook for our perennially last placing state. The news:

ExxonMobil investments in New Mexico could kick up a $64 billion tidal wave of benefits for the state over the next 40 years, according to a new study by the oil giant. "The Permian Basin is the engine of America’s energy renaissance and New Mexico residents will see direct economic benefits and opportunities from our planned investments,” ExxonMobil Chairman and CEO Darren Woods said. "We will be a significant, long-term economic contributor to the state of New Mexico and will work hard to be a trusted member of the community.”

The state is already seeing billion dollar surpluses and the challenge of effectively spending that cash haul now confronts lawmakers. For example, the notoriously ineffective method of doling out billions in capital outlay for construction projects such as dams, roads and bridges is not prepared to handle this cash tsunami and needs reform. The dormant idea of a state capital outlay planning commission to take the politics out of the process now has a new sense of urgency.

And the Legislative Finance Committee reports we are still not getting the construction money put to work efficiently because of flaws in the system:

. . . As of March, the state had $737 million outstanding for more than 1,600 projects. More than half of that funding--$480 million--was authorized last year, but $174 million dates back to 2017 and about $66 million is older than that.

The Exxon study is based on an average oil price of only $40 a barrel. If it goes higher (it is currently over $60) the cash coming into the state soars, not only from Exxon but other companies fracking the Permian.

This study should once and for all bring down for a landing the austerity hawks circling the Roundhouse as it is evident our fortunes have turned for the better and for the foreseeable future. The time for investment--not retrenchment--is finally here.

One no-brainier now is to ask voters to finally approve a one percent annual drawdown of  the state's $18 billion Land Grant Permanent Fund for early childhood education to attack the underlying generational problems causing New Mexico to languish. That fund, along with the state's General Fund for annual expenses, is set to explode to new heights in the years ahead as the Permian oil boom roars.

NO-BRAINER II

Another no-brainer as the fates smile on the state is to once and for all end the endless debate over whether the pension funds for state government workers (including educators) have enough cash in the bank. We think they do, but the bean counters on Wall Street (who love those investment dollars) don't think so. One of the solutions offered is to have a cash infusion of up to $200 million into the funds, instead of cutting cost of living adjustments for retirees. That can easily be done now, even if it is over a four or five year period. So do it (or a bit less) and stop the needless gnashing of teeth over the funds being depleted in the year 2055 or something.

LEAPING VS. LOOKING

The old adage "look before you leap" certainly comes into play in the wake of the Governor's decision last week to send 50 state police officers to ABQ to help quell the crime epidemic. Already they have fired shots at two suspects in apparent violation of the federal consent decree regarding the use of force by APD.