Lea County approves preliminary FY2025–26 budget, moves to publish permanent‑fund hearing notices

Lea County commissioners on May 22 approved the county’s preliminary fiscal year 2025–26 budget and authorized publication of notices to consider ordinances establishing a county permanent fund and a related income fund.

Assistant County Manager Chip Lowe presented the budget and said the county’s basic planning assumptions treat the oil and gas sector as the primary revenue driver. The preliminary budget proposes adding 27 positions and budgets payroll and benefits totals consistent with the commission’s prior discussions. To seed the proposed permanent fund, the presentation included a possible transfer from the general fund of up to $115,000,000, with a conservative assumed return of approximately 3 percent used to project income to a separate income fund.

Finance and budget staff stressed that oil‑price and rig‑count volatility present risks; staff noted oil prices had declined since January and that recent rig counts dropped about 20 percent in three weeks, but staff said the county’s conservative assumptions and reserves provide a buffer. The staff presentation included projected operating revenues, capital spending and reserve calculations and indicated the county would still budget a substantial general-fund balance under the preliminary figures.

The commission approved publication of the public‑hearing notices for the permanent fund and income fund ordinances (to meet two‑week publication requirements) and approved Budget Adjustment No. 4 to prepare accounts for the permanent fund and other year‑end adjustments. The preliminary budget was approved on a recorded vote; staff will return with final budget adoption items later in the year after required notices and hearings.

What happens next: staff will publish required notices, hold public hearings and return to the commission with draft ordinances and the final budget for formal adoption.