SANTA FE, N.M. (AP) – New Mexico legislators say a dip in oil prices could result in a smaller increase in state revenue to divvy up during the next budget year than they expected a few months ago.

A revenue forecast released in August said about $285 million should be available for spending increases or tax cuts.

However, key legislators said that increase now apparently will be smaller, in the range of $185 million to $235 million, the Albuquerque Journal (http://goo.gl/DVP4MS ) reported Thursday.

The state relies heavily on taxes and royalties from energy production, with a little more than $1.1 billion in revenue coming from oil and gas last year.

A smaller revenue increase could mean less money for additional spending for public schools, health care, prisons and other state programs. Less new money also could affect legislators’ desires for major tax cuts.

Read more here: http://www.currentargus.com/ci_26977610/legislators-expect-smaller-new-mexico-revenue-gain