SANTA FE – An economic boom in southeast New Mexico has been attributed to skyrocketing oil production.
The Albuquerque Journal reported Friday that New Mexico’s revenue exceeded projected levels allowing lawmakers to authorize a $663 million spending increase for the budget year that started in July.
Officials say the 11% increase is expected to be used toward teacher salary increases, education spending, highway repairs and construction.
Officials say improvements to drilling techniques made New Mexico the nation’s third-highest oil producing state and contributed to mass production in the Permian Basin about 290 miles from Albuquerque.
Officials say revenue levels came two years after a steep decline forced lawmakers to cut spending.
Economists are expected to release official revenue estimates later this month.
