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Lea County adopts 2025–26 budget and moves $120 million into permanent fund
Summary
The Lea County Board of Commissioners approved a $120 million transfer into a newly established permanent local-government fund and adopted the final fiscal year 2025–26 budget, which includes $362 million in capital projects and 27 new full-time positions.
Lea County commissioners voted July 1 to transfer $120,000,000 into a new local-government permanent fund and to adopt the county’s final fiscal year 2025–26 budget.
County Manager presented the plan to move the funds under authority of New Mexico statutes and county ordinance, saying staff ran multiyear capital projections to ensure the transfer would not impair operations. Commissioners approved the motion by recorded vote.
The adopted budget funds roughly $362,000,000 in capital projects that planners said include roadway work, detention center upgrades, event-center carryover costs, airport improvements, and contributions to local municipal projects. The budget also includes 27 new full-time equivalents—20 of them for the detention center—and a salary pool that yields a roughly $43,000,000 baseline payroll and $70,751,000 when benefits are included.
Finance staff described conservative revenue assumptions used to build the budget: oil production taxed using a 75% 12‑month average with a $36 per-barrel price assumption at the 95% confidence interval, a 36‑rig count forecast, and modest gross receipts tax and property-tax estimates. Staff said the county maintains a significant fund balance and reserves—three months minimum plus additional operating reserves—before identifying the $120,000,000 as available for capital.
Commissioners discussed investment oversight and confirmed that principal placed in the permanent fund cannot be withdrawn except by a public vote; earnings on the fund may be used for operations or capital per policy. County treasurer and investment committee oversight will guide investment decisions, staff said.
The adoption of the budget allows the finance department to submit the final package to the state Department of Finance and Administration for approval and to proceed with planned capital procurements and staffing additions.
The commission approved the budget and transfer by recorded vote; board members did not identify any further changes at the meeting.
