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The collapse of oil prices and coronavirus pandemic are devastating the budgets of Western states that have become dependent on oil revenue. Wyoming lawmakers this week were warned of a projected $1.5 billion drop in revenue, leading to a general fund shortfall of nearly $900 million—roughly one third of the state's budget—by June 2022.
The state budget director pointed out that a cut of that magnitude would require eliminating every single person employed in state government, or the entire state education system. Legislators now have to consider a combination of massive spending cuts and tax increases in order to address the collapse of the energy industry.
In New Mexico, an estimated $2 billion revenue drop may be somewhat offset by the state's substantial reserve funds, according to the head of the state Senate finance committee. But avoiding major spending cuts will depend on New Mexico getting significant flexibility in how it can spend federal COVID relief funds. And if oil production remains low in the long term, New Mexico lawmakers may need to overhaul the state's tax code in the legislative session that begins next January.
Former BLM state director blasts agency leadership
Jim Kenna, the former Bureau of Land Management state director for California, ripped into the leadership of Interior Secretary David Bernhardt in a High Country News opinion piece. Kenna, who retired in 2015 after 40 years of public service, warned that “Bernhardt’s aggressive agenda has favored corporate interests. This push has continued despite the pandemic, ignoring public outcry against despoiling cherished Western landscapes.”
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Secretary Bernhardt panders to oil and gas interests by reducing royalties, handing out small business loans meant for local businesses, and leasing millions of acres for pennies on the dollar. His actions—carried out under the cover of a national emergency—do not serve taxpayers, state and local governments, or the public interest.”
