NM Budget Woes Worsen
New Mexico – New Mexico's revenue outlook continues to weaken, aggravating the state's budget problems.
The Legislative Finance Committee received a new financial forecast Thursday that says revenues will be $53 million lower next year than previously expected.
There's a potential budget gap of $500 million to $600 million next year. That's what would be needed to maintain a flat budget with no growth next year.
The state is using federal economic stimulus money to pay for public schools and health care services. At least $300 million in state money will be needed to replace federal funds next year unless budgets are cut by that amount.
Lawmakers and the governor are looking at reducing spending and potentially raising taxes to balance the state budget next year.
Copyright 2009 The Associated Press.