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A Concho Resources drilling rig operates in New Mexico's Permian Basin. (Image courtesy of Concho Resources)

New Mexico permanent funds shrink amid energy bust

SANTA FE, N.M. (AP) — Rainy day funds overseen by the state of New Mexico have been drawn down by almost 2 percent during the past year as spending on public education and infrastructure projects outpaces investment income and revenues linked to the oil and natural gas industries.

The New Mexico State Investment Council said Monday that assets declined by $386 million to $20.19 billion for the 12-month period ending June 30. Most of those assets are held in the state’s Land Grant Permanent and Severance Tax funds that help fund public schools and infrastructure projects across the state.

Preliminary figures for the fiscal year show a positive return on managed investments of about half of 1 percent — well below targets. Investment council spokesman Charles Wollmann says assets declined because distributions outpaced inflows.

 

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