"In US, States Struggle To Replace Fossil Fuel Tax Revenue"

"SANTA FE, N.M. — Government budgets are booming in New Mexico: Teacher salaries are up, residents can go to an in-state college tuition-free, moms will get medical care for a year after childbirth, and criminal justice initiatives are being funded to reduce urban violence.

The reason behind the spending spree — oil. New Mexico is the No. 2 crude oil producer among U.S. states and the top recipient of U.S. disbursements for fossil fuel production on federal land. But a budget flush with petroleum cash has a side effect: It also puts the spotlight on how difficult it is to turn state rhetoric on tackling climate change into reality.

State governments in the nation’s top regions for producing oil, natural gas and coal have by far the highest per-capita reliance on fossil fuels — led by Wyoming, North Dakota, Alaska and New Mexico. The revenue bankrolls essential public services, from highway maintenance to prisons. In Carlsbad, New Mexico, oil infrastructure property taxes are underwriting a high school performing arts center, expanded sports facilities and elementary school renovations."

Morgan Lee and Mead Gruver report for the Associated Press May 16, 2022.

Source: AP, 05/17/2022