© 2024 KRWG
News that Matters.
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Bleak Budget Outlook For New Mexico

  A top budget negotiator in the New Mexico House of Representatives says a dire revenue forecast for the coming fiscal year remains unchanged after a review by state economists.

House Appropriations and Finance Committee Chairwoman Patricia Lundstrom told the Associated Press on Wednesday that a new revenue estimate from economists at four agencies leaves a $125 million shortfall for the state to maintain current services.

The Democrat from Gallup says closing that gap would require an additional 2 percent overall cut to agency spending if no new taxes or other revenues are approved for the budget year starting July 1.

The state is struggling to pay its bills and sustain basic government programs amid plunging tax revenues tied to a downturn in the oil sector and a sluggish overall economy.

Amid a downturn in the local oil sector, New Mexico has cut back spending at most agencies and has swept cash from school district reserves and other government accounts.

Gov. Susana Martinez has urged lawmakers to avoid tax increases and to tighten government spending.

 

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed