RED RIVER, N.M. (AP) - The Latest on New Mexico’s state budget crisis (all times local):
9:10 a.m.
Economists for the state of New Mexico say the flow of revenues to the state’s general fund declined by more than 8 percent during the fiscal year ending in June as a slump in oil markets held back the local economy and state tax receipts.
State budget experts announced on Wednesday an estimated $523 million decline in recurring revenues to the general fund. The decline leaves the state with a negative balance for readily accessible reserves and a projected deficit for the current budget year.
Economists from the Legislature and three executive-branch agencies are providing a mid-year snapshot of state finances to members of the Legislative Finance Committee at a meeting in the mountain resort of Red River. The estimates are likely to set the stage for a special session of the Legislature in September to address last year’s reserve shortfall and a projected deficit this year.
Total general fund reserves declined to $130 million in June from $713 million in mid-2015 as the state dug into savings to stave off a budget shortfall.
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1:10 a.m.
New Mexico officials are revising revenue expectations downward as state lawmakers confront state budget shortfalls reminiscent of the 2008 recession.
Members of the Legislative Finance Committee that drafts the state budget are meeting Wednesday in the town of Red River to examine tax receipts for the budget year that ended and June and projections into the near future.
Economists from the Legislature and three executive-branch agencies provide the mid-year snapshot of state finances. The estimates are likely to set the stage for a special session of the Legislature in September to address last year’s budget shortfall and a projected deficit this year. New Mexico Gov. Susan Martinez says she plans to reconvene lawmakers and has recommended all state agencies reduce spending by 5 percent.
New Mexico is one of several states dealing with general fund revenue declines linked to a sustained slump in oil and natural gas prices.
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