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Economic Slump Continues: Santa Fe Facing $2.1 Million Deficit

Santa Fe is facing a budget deficit of more than $2 million in the upcoming fiscal year.

City finance director Oscar Rodriguez says the city has been operating with about $10 million less each year in gross receipts tax revenue for the past several years when inflation is factored in.

To keep from making cuts, the city dipped into reserves, deferred maintenance and tapped into bond money that was intended for brick-and-mortar projects.

Rodriguez says that strategy can't be sustained.

He says part of the problem is gross receipts taxes on retail purchases and services are a critical revenue stream, but they're volatile and fluctuate with the economy.

City Councilor Carmichael Dominguez has suggested that Santa Fe begin talking about tax reform.

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Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com

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