The Latest on a state budget crunch in New Mexico linked to low energy prices (all times local):
11:50 a.m.
New Mexico Gov. Susana Martinez is contemplating the need for a special Legislative session to address dwindling state operating reserves.
Martinez on Tuesday said her office has been working for weeks with executive agencies and a key legislative committee on how to resolve the state's fiscal imbalance and that a solution may involve a short, pre-negotiated Legislative session.
New Mexico is one of several states dealing with general fund declines linked to reduced energy prices and production.
The Republican governor spoke at a meeting of the State Investment Council. The council has postponed decisions on shifting investments in a $220 million Tobacco settlement fund that might be used to replenish state operating reserves.
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4:00 a.m.
Rainy day funds overseen by the state of New Mexico have been drawn down by almost 2 percent during the past year as spending on public education and infrastructure projects outpaces investment income and revenues linked to the oil and natural gas industries.
The New Mexico State Investment Council said Monday that assets declined by $386 million to $20.19 billion for the 12-month period ending June 30. Most of those assets are held in the state's Land Grant Permanent and Severance Tax funds that help fund public schools and infrastructure projects across the state.
Preliminary figures for the fiscal year show a positive return on managed investments of about half of 1 percent — well below targets. Investment council spokesman Charles Wollmann says assets declined because distributions outpaced inflows.
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