NM Is Swimming in Oil Wealth. But How to Spend It?

New Mexico suddenly finds itself sitting on oil riches that would make some petro-states nod in recognition—and now the fight is over how fast to spend them. The Wall Street Journal reports the state's oil boom has swelled its sovereign wealth fund to about $75 billion, with projections it could hit $100 billion by decade's end and outsize Alaska's. The fund, managed by State Investment Officer Jon Clark, is already funneling billions into the budget and is expected to eventually surpass oil and gas themselves as New Mexico's main revenue source. "We're going to increasingly be part of how the state pays for everything moving forward," Clark says. "The potential for impact is almost limitless in the long term."

Democrats led by Gov. Michelle Lujan Grisham have tapped the money for free college, a universal child-care program, and other social spending. But a legislative analysis found $2.6 billion in extra K-12 funding hasn't moved the needle much on school performance, raising questions about whether the windfall is being used effectively. Democratic gubernatorial hopeful Deb Haaland wants both to grow the fund and spend more of it on things like a public health-insurance option, while Republicans push for more saving and tax relief. At the Journal, David Uberti and Dan Frosch lay out the stakes—and the risks of a future bust. Their full piece is here.