NM Says It Can Limit State Problems From U.S. Debt Crisis
New Mexico – Gov. Susana Martinez's top budget official says no cutbacks in state services or worker furloughs are expected if federal revenues are disrupted because of a failure to raise the nation's debt ceiling.
Finance and Administration Secretary Rick May said balances in the state treasury can provide cash flow to cover expenses if federal revenues are temporarily disrupted.
On an average business day, the state spends about $65 million for all government programs.
To help protect the state from potential fallout from a federal debt ceiling impasse, state officials decided last week to authorize up to $500 million in short-term securities, which will be repaid later in the year with anticipated state revenues. The borrowing will help New Mexico meet cash flow needs if federal revenues stop temporarily.
Copyright 2011 The Associated Press.