Contact: Isaac Padilla
Office: 505/986.4819
Isaac.Padilla@nmlegis.gov
FOR IMMEDIATE RELEASE
State Revenues Plummet, Special Session of Legislature Needed to Fix State Budget
(Santa Fe, NM) – State Senator John Arthur Smith, Chairman of the New Mexico Senate Finance Committee, today urged Governor Susana Martinez to convene the Legislature in a special session quickly to address a severe budget crisis. At a news conference in the Roundhouse in Santa Fe to discuss the State’s revenue outlook, Smith said that new reports show falling tax revenues have put the State government’s budget in crisis. Swift and cooperative action by both the Executive and the Legislature is needed to avoid deficit spending for the continued operation of New Mexico schools, prisons, public health care, public safety and other essential State services.
“We are in a very serious budget situation today because of falling tax receipts, caused by tepid oil and gas revenues and anemic economic activity,” said Sen. Smith. “State government is spending more money than it is taking in, and by law, we cannot do that. I encourage the Governor to work with legislative leaders to address this reality and identify both short and long term solutions.”
In the fiscal year that ended on June 30th, New Mexico has a $150 million funding shortfall, according to new figures released this week. Smith said he believes that a State fund containing up to $230 million from a settlement with tobacco companies could be used to cover the $150 million shortfall from Fiscal Year ’16. All other State reserve funds were essentially exhausted earlier this year.
The outlook for Fiscal Year ’17, which began on July 1st, appears to be even worse, and could see a shortfall of between $300 – $500 million. Smith indicated that program cuts and new revenue sources would be needed to address it. “Unless June’s revenues show a marked increase, a special session seems unavoidable. We must face this problem head on and keep all options on the table,” he added.
Video of a press conference held today at 11:00 AM that addressed the state budget can be viewed at the following link until 11 AM on July 22, 2016. https://www.periscope.tv/NMSenateDems/1yoKMlOndMzxQ
Supporting Document:
General Fund Fiscal Outlook PDF
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