Ronchetti proposes annual oil & gas rebate for New Mexicans
Albuquerque, NM – Mark Ronchetti today announced his plan to return millions of surplus dollars directly to New Mexicans in the form of an annual Oil and Gas Rebate, saying that New Mexicans should share in the significant revenue contributions of the energy industry every year.
Under current conditions, the Ronchetti rebate would mean over $500/year per person, or over $2,000 for a family of four, as the rebate would be available for every adult and child citizen of New Mexico. The rebate amount would be determined by the surplus oil and gas revenue for the year, with triggers in place to protect state government budgets during downturns.
“Our oil and gas industry is a major contributor to our economy and every New Mexican should share in that benefit,” says Ronchetti. “State government has never been richer, but does your family feel that? I’m betting you don’t, and there’s no excuse for that. There’s a clear choice between out-of-control government spending, or returning money to New Mexico families who can truly use it.”
Ronchetti says every New Mexican should share in the significant contributions of the energy industry each year, saying it’s money that should be put to use by families and not squandered by Santa Fe bureaucrats.
“New Mexicans deserve to benefit directly and regularly from oil and gas royalties, and choose for themselves how to spend and invest those funds,” says Ronchetti. “This plan gives our families a direct stake in the industry, each and every year. It’s a far cry from an election-year gimmick of just a couple hundred dollars when oil and gas contributes more than $6 billion a year to our state coffers.”
When the oil and gas industry does well in New Mexico, taxes from the industry go into the black hole of the state government budget. This dynamic also creates an unpredictable pattern of budgeting — when oil prices are high, government spending massively increases, creating shortfalls when oil prices fall. This fiscally irresponsible approach leads to either painful budget cuts, or higher taxes when the price of oil inevitably falls.
By rebating a portion of the tax revenues generated by the oil and gas industry back to the people of New Mexico, hardworking taxpayers will benefit directly from a healthy, strong energy industry, while simultaneously making our state budgeting process more fiscally responsible.
- Every New Mexican, regardless of age, would receive $100 for every $1 billion the state receives in oil and gas revenue each year.
- At current oil and gas production levels, this would amount to more than $500 for every man, woman, and child in New Mexico.
- It would mean more than $2,000 per family of four.
- Trigger mechanisms would be put in place to adjust the stipend in the event of steep revenue downturns.