HOBBS, N.M. — A southeastern New Mexico county once booming with oil and gas production is expecting a 23 percent reduction in revenue for the next fiscal year.
The Hobbs News-Sun reports that Lea County estimates the gross receipts taxes from all levies are projected to be $3.3 million less thanks to a dramatic fall in oil prices.
Sherri Bunch, Lea County finance director, says the drop in oil and gas production has also lead to readjustments to this fiscal year’s spending plan.
The plunge in crude oil prices per barrel has led to plummeting gas prices nationwide and has affected the energy industry, especially in oil-rich Lea County.
A recent audit noted how the county’s main sources or revenues “are from oil and gas production tax, property tax” and other sources.
Information from: Hobbs News-Sun, http://www.hobbsnews.com
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