SANTA FE, N.M. – We’re exactly six weeks away from the start of the 60-day legislative session. Once again, state lawmakers will have to decide what to do with another massive budget surplus.

The oil is flowing out of New Mexico, and it’s pumping even more money into the Roundhouse. We’re talking an extra $892 million, and state lawmakers are already debating what to do with that extra cash.

“We can save appropriately. We can invest wisely,” said state Rep. Nathan Small. 

But it seems the real battle will be over where to draw that line.

“We really need to think about what are we looking at for the future of New Mexico in recurring, non-recurring spending, and how can we really do New Mexico justice by having a savings account,” said House Minority Floor Leader Rep. Gail Armstrong. 

Analysts with the Legislative Finance Committee say the state already has $3.1 billion in reserves, roughly a third of the current state budget. But with $900 million more on the table, it seems some lawmakers believe there’s money to spend.

“There’s still real struggles. And so the idea of just saving every dollar, not investing in things like education or water infrastructure, is another big area that’s not the right thing,” said Small. “We know that New Mexicans need access to health care that’s affordable, and it does the job. And so we’re going to be able to look at making investments in that area as well.”

Several state agencies are already asking for budget increases, including a 21% boost for the health department, an extra $218 million in investments for the environment department, and $23 million more for the Children, Youth and Families Department. 

But some lawmakers say the Roundhouse is not a bank.

“We can’t, it’s not sustainable. They can’t spend the money they have now,” said Armstrong. “They just presented to us, they can’t hire, but they’re asking for more money for hiring.” 

Lawmakers on both sides believe the budget surplus is an opportunity to give New Mexicans some economic relief.

“We would love to see some tax cuts. Give some money back to the people who are out there creating jobs and doing what’s best for New Mexico,” Armstrong said. 

“We’re making sure other things like child care, that New Mexicans can access affordable child care that helps their kiddos and lets them do the sorts of things, whether it’s work or school or what have you, that they need to do,” said Small. 

The state budget is always a major debate here in the Roundhouse, as it should be, and we’ll be bringing you updates on those conversations as the 60-day legislative session gets going in January.

The 60-day legislative session is scheduled to begin on Jan. 21.