By Carter Swanson

More and more New Mexico chooses to stockpile money in permanent funds, rather than spend. The total value of these funds is currently a mind-blowing $58 billion. This means that the New Mexico State Investment Council has one of the largest sovereign wealth funds in the world (according to the Sovereign Wealth Fund Institute). There are only two states, Texas and Alaska, that have larger funds. It is speculated that in the coming decades, revenue from these permanent funds will surpass revenue from oil and gas.

On its face this sounds like a very good thing, right? And, to an extent, it is. Policymakers like Speaker Javier Martinez say New Mexico is preparing for the future. Given the volatile nature of oil and gas, that is a prudent thing to do.

But while planning is important, New Mexico has much that needs improving right now. Government spending has grown massively since the oil boom began; our results, however, have not improved all that much. Crime, education, and excessive taxation remain problems, and our economy is more dependent on oil and gas than ever.

There are other pathways. Alaska, for example, has no personal income tax or sales tax. In fact, Alaska famously has a constitutional mandate to return a "dividend" to citizens from money generated by oil and gas. Closer to home, Texas is consistently one of the fastest growing states in the nation. It too lacks a personal income tax.

There is no reason, with the resources we have available, that New Mexico cannot be more like Texas economically. We could be just as, or even more, attractive and fast-growing, if we put our money to work today.

And, with the surplus, there is more opportunity than ever to take action. That is why the massive permanent funds are so frustrating. No one is saying New Mexico shouldn't set aside some money in permanent funds., but we must also invest in diversifying and growing New Mexico's economy today.

Having socked away such a massive pot of money implies that things are perfectly fine now, which sadly is not the case. At the very least, easing the tax burden on New Mexicans seems like an obvious next step. The state certainly doesn't need more income, yet there's no relief in sight. The governor continues to barrel ahead, with no consideration for New Mexico's prosperity.

The future our government is saving for—one that will apparently rely heavily on government funds—is a bleak one. Investing in economic prosperity and freedom now, when we can afford it, is the most surefire way to ensure that we are a prosperous state in the years to come.

Carter Swanson is a policy analyst with New Mexico's Rio Grande Foundation, an independent, nonpartisan, tax-exempt research and educational organization dedicated to promoting prosperity for New Mexico based on principles of limited government, economic freedom and individual responsibility.