NMSU study shows Eddy County top contributor to state government

Eddy County is the top contributor to the New Mexico State budget, according to a study conducted by the Arrowhead Center at New Mexico State University.

District 1 Eddy County Commissioner Ernie Carlson asked the Arrowhead Center to conduct analysis on where New Mexico counties rank when it comes to contributions to state government spending, read an Eddy County Commission document.

Carlson said the purpose of the study was to show the New Mexico Legislature why they need to support oil and gas.

The report, titled the State of New Mexico County-Level and Expenditure Analysis, looked at various budget aspects between 2015 to 2019.

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Dr. Kramer Winingham, program director of the Arrowhead Center in Las Cruces, said the study estimated revenue and expenditures by all 33 counties in New Mexico.

Eddy County contributed $101,000 per person to the State coffers, the study read. The state of New Mexico reinvested over $19,000 per person, but netted the difference of approximately $82,000.

Lea County was No. 2 in the survey followed by Los Alamos, Bernalillo and San Juan counties.

“Eddy and Lea counties really stand out here due to oil and gas revenues and gross receipts taxes (GRT) associated with those economic activities,” Winingham said.

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“The intent here is to show again the disparity between the amount of revenue contributed —and in this instance is a per-capita basis as a modifier or unifier if you will — relative to known expenditures on the state level,” said Eddy County Manager Allen Davis.

“If you look at the amount contributed to the amount received on a per-capita basis, Eddy and Lea county stand out head and shoulders (above other counties). There’s an $80,000 difference between the top two and the next three, four and five,” Davis added.

He said State lawmakers should keep in mind Eddy County's contributions as it makes decisions affecting the oil and gas industry. New Mexico's Legislature entered a 60-day session Jan. 19, one during which lawmakers may be asked to pass regulatory items and even the proposed ban of hydraulic fracturing. 

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Davis said there’s a lack of understanding and awareness among state leaders about the exact contributions of the industry to state revenue. 

Carlson suggested Eddy County officials visit with leaders in the New Mexico Legislature about the issue. District 2 County Commissioner Jon Henry said communicating the issue to local government leaders in Albuquerque, Santa Fe and Las Cruces may also advance understanding.

“They need to understand where the money is coming from and why it’s coming from here,” he said.

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“You need to understand what you’re coming after. There’s a lot of commissioners and city councilors who have no idea where things happen. We need to find some kind of common ground,” Henry added.

Eddy County Community Services Director Wesley Hooper said the county would work on passing the study along to other governing bodies in New Mexico.

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Mike Smith can be reached at 575-628-5546 or by email at MSmith@currentargus.com or @ArgusMichae on Twitter.