There has been no real improvement in the NM economy since the recession. This while other surrounding states with dependence on oil and gas of TX and OK are doing much better. NM's problems go well beyond low oil and gas prices.
NM also has a heavy dependence on Federal monies, especially for defense. There have been large cuts in those areas over the past 8 years. Then we have the two white elephants, Rail Runner and the Spaceport that are big money drains (including increases in taxes for several NM counties to help pay for these ventures). Couple all this with an entrenched welfare dependence, an uneducated workforce and corresponding lack of private business investment, and we have one lousy economy. Despite high birth rates, there has been an out migration of population over the last decade. IMO it will take decades to turn around, with much better educational performance and recruitment of several large corporations as essential. It's depressing to think that Intel could easily leave Rio Rancho.
The two big hopes for near-term relief are a return of the oil and gas boom and increases in defense spending at Kirtland, Holloman, Cannon, White Sands, and Los Alamos.
A high poverty rate, dire budget situation and high unemployment led to New Mexico once again being named the worst-run state in the nation, according to a list compiled by 24/7 Wall St.
This is the second year in a row that the publication ranked New Mexico as the worst-run state in the country.
The site ranks the states based on “measures of financial health and fiscal responsibility, as well as socioeconomic outcomes such as unemployment, poverty, and crime — conditions state governments are tasked with managing and improving.”
In addition to other economic factors, 24/7 Wall St. cited Moody’s Investor Services downgrading the state’s credit rating which came because of a general lack of general fund reserves.
New Mexico is also seeing stagnant population growth, another indicator the New York-based publication looks at.