NM Revenues Down $700 Million

New Mexico – New Mexico's revenues are down more than $700 million over two years, and the shortfall is large enough to wipe out the state's cash reserves.

That's the message delivered Friday to legislators in a new revenue forecast from economists.

According to the projections, state revenues will drop to about $5 billion in the budget year that started in July. That's $433 million less than what had been anticipated when lawmakers enacted the budget.

Last year's revenues are about $309 million below what had been previously forecast.

Economists say most of the decline is from weaker income and sales tax collections. That's caused by the recession.

Lawmakers will meet in a special session, probably in October, to fix the budget deficit.