STATE AGENCIES IN NEW MEXICO ARE BRACING FOR MAJOR BUDGET CUTS. UNM ECONOMIST JEFF MITCHELL SAYS, IN THIS FISCAL YEAR ALONE, THERE’S CLOSE TO A HALF-BILLION DOLLAR REVENUE SHORTFALL. MITCHELL TELLS NEWSRADIO KKOB NEW MEXICO IS FAR TOO DEPENDENT ON OIL AND GAS REVENUES. HE SAYS FOR EVERY ONE DOLLAR DROP IN THE PRICE OF CRUDE OIL, THE STATE LOSES 7 AND-A-HALF MILLION DOLLARS FOR THE YEAR.
THE GOVERNOR’S PROMISE TO NOT RAISE TAXES LIMITS THE LEGISLATURE’S OPTIONS WHEN AND IF A SPECIAL SESSION IS CALLED. MITCHELL SAYS THERE’S NO WAY AROUND TAX HIKES BECAUSE, IN HIS WORDS, “THERE’S NOT A LOT OF FAT ON THE BONE RIGHT NOW.”
