Regional
11:06 am
Wed October 20, 2010

New Mexico Revenue Situation Worsens

New Mexico – Gov. Bill Richardson says there's no need to make more budget cuts based on a new revenue forecast.

The Legislative Finance Committee is to receive projections Wednesday showing revenues down about $40 million in the current fiscal year. But that's partly offset because last year's revenue is more than $20 million higher than expected.

Spending cuts of 3 percent were implemented in September to close a budget shortfall this year.

The governor's office said the net drop in revenues in the new forecast is small enough that no further budget cuts should be needed before the Legislature meets in January.

However, budget problems for next year are worsening because projected revenues for fiscal year 2012 are down by $80 million.

Copyright 2010 The Associated Press.