NEW MEXICO AIMING FOR 5% CUT IN SPENDING
For the upcoming fiscal year, Governor Michelle Lujan Grisham is directing executive agencies to reduce the spending obligations by 5% to help ease an anticipated budget deficit. The AP reports that agency budget proposals are due Tuesday in an annual rite that provides time for legislators to outline a balanced budget before they reconvene in January. The 5% reduction is for general fund spending levels for the fiscal year starting on July 1, 2021, compared to current-year obligations. This is line with the Legislature’s budget and accountability office. Exceptions do apply however, including considering additional funding to services like Medicaid. In June, state economists warned potentially of $990 million shortfall in general fund revenues for the coming fiscal year.
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