SANTA FE – A fiscal analysis from the Legislature shows that New Mexico state revenues faltered slightly in March.
Monday’s report from the Legislative Finance Committee foreshadows severe economic effects of the coronavirus pandemic.
State government general fund income decreased to $690 million for the month of March, down 5% from $728 million in March 2019.
The Legislature is scheduled to gather June 18 to rewrite the state’s spending plan for the coming fiscal year that starts on July 1. Detailed budget proposals have not been released.
A national recession and reduced oil demands are expected to undermine state government income. New Mexico relies heavily on income from fossil fuel production to supports school districts, public universities, health care and more.
The federal government has allocated at least $1.25 billion in recovery dollars to New Mexico.
That money and more than $1 billion in financial reserves may help the state avoid immediate cuts to staff and services.
Democratic Gov. Michelle Lujan Grisham says the state may rein in some spending on infrastructure projects.