New Mexico Native to Oversee State’s $49 Billion Savings Portfolio Amid Petroleum Windfall

New Mexico has recently appointed a state cabinet secretary and former economist to the Legislature, Jon Clark, as the new state investment officer. Clark’s role will involve overseeing New Mexico’s $49 billion savings portfolio, which has primarily been built from oil production on state trust lands since the 1970s. The funds are intended to benefit schools, hospitals, and other public institutions.

The 11-member State Investment Council, which includes elected and appointed officials, conducted a nationwide search for the new state investment officer, receiving over 80 applications. Clark, who previously worked as an analyst and chief economist to the budget and accountability office of the Legislature, has also recently served as the acting cabinet secretary at the Economic Development Department. This department is responsible for administering annual incentives worth hundreds of millions of dollars aimed at creating private employment opportunities, such as job-training grants and film production “rebates.”

Steve Moises, who held the position of state investment officer for 13 years, retired in October. Clark will begin his new role with an annual salary of $285,000.

The management of New Mexico’s state investments has become increasingly significant due to the surge in state government income from oil and natural gas production in the Permian Basin, which overlaps southeastern New Mexico and portions of western Texas. Voters approved an increase in annual distributions from the land grant fund to public schools and early childhood education programs last year. At the same time, state lawmakers have been setting aside billions of dollars in surplus state income each year in various trust accounts for future use, in case the demand for oil decreases.

The State Investment Council also oversees New Mexico’s early childhood education trust, which was established in 2020 to generate investment earnings and support an ambitious expansion of public preschool, no-cost childcare, and home nurse visits for infants. The fund currently holds approximately $6 billion.