SANTA FE (AP)- A group of state economists announced Wednesday, that economic fallout in New Mexico from the coronavirus pandemic is likely to wipe out between $2.1 billion and $3.9 billion in previously anticipated state government income by mid-2021.
The Associated Press reported, the rough forecast provides a baseline for discussion on rewriting the state budget during a special legislative session slated for mid-June that has implications for spending on everything from health care to public education.
A memo from staff economists at three executive agencies and the Legislature outlined two scenarios for the economic downturn and recovery. Both involve plummeting state revenues from personal income taxes and gross receipts taxes on sales and services, as well as faltering income from severance taxes and federal royalty payment on oil production that is focused in Permian Basin of southeastern New Mexico.
“The preliminary review shows reserve balances are likely insufficient to cover the extent of revenue declines,” the memo states.
New Mexico Gov. Michelle Lujan Grisham plans to call the Legislature to a special session the second week of June to rewrite the $7.6 billion general fund spending plan for the fiscal year that starts on June 30.
Associated Press reporter, Morgan Lee.