New Mexico state revenues plunge on low energy prices

money

SANTA FE (AP) – New Mexico is revising downward estimates for revenue growth to $30 million from previous expectations of $232 million as the Legislature crafts a new budget.

The New Mexico Department of Finance and Administration announced Wednesday that a perfect storm of low energy prices had eroded revenue expectations for the budget year starting in July. Economists from three executive agencies and the Legislature agreed on the new estimate.

The revised figures threaten to upend priorities for spending during the Legislature’s abbreviated 30-day budgetary session.

Prior to the revisions, Republican Gov. Susana Martinez recommended a $230 million increase in spending. That plan included increased funding for Medicaid health care, law enforcement, early education programs and teacher pay.

Low oil prices in particular have eroded state income from severance taxes and royalties.

KRQE.com provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s