NEW MEXICO’S BORROWING COSTS COULD GO UP IN THE FUTURE, NOW THAT MOODY’S INVESTOR SERVICE HAS DOWNGRADED THE STATE’S BOND RATING. UNM ECONOMIST JEFF MITCHELL SAYS IT’S AN INDICATION THAT THE STATE STILL HAS FINANCIAL ISSUES, EVEN AFTER THE RECENT SPECIAL LEGISLATIVE SESSION. HE SEES IT AS A STERN WARNING THAT THE STATE NEEDS TO ADDRESS ITS FINANCIAL CHALLENGES AND INCREASE THE LEVEL OF ITS RESERVES.
MITCHELL TELLS NEWSRADIO KKOB THAT NEW MEXICO HAS USUALLY KEPT 10 PERCENT OF ITS BUDGET IN RESERVE. BUT THAT FIGURE IS NOW DOWN TO ABOUT HALF-A-PERCENT.
