Editorial: Another 9-figure shortfall requires a special session

By Albuquerque Journal Editorial Board

Tuesday, July 26th, 2016 at 12:02am

“State government is spending more money than it is taking in, and by law, we cannot do that.”

– Sen. John Arthur Smith, Finance Committee chair

State expenditures from July 2015 to July 2016 have exceeded revenue by $600 million.

– State Treasurer Tim Eichenberg

While New Mexicans depend on their leaders to remain cool, calm and collected in a crisis, when oil and gas prices drop to the point that the state burns through $400 million in cash reserves in one budget year and takes those reserves down to just $63 million, it sure looks like it’s time for a serious family discussion about finances around the kitchen table.

Smith, D-Deming, warned last week that despite burning through much of our reserves the state is still facing a $150 million-plus deficit for the budget year that ended June 30, and a $300 million to $500 million deficit next budget year. He says a special session is in order – as early as next month.

Read more: http://www.abqjournal.com/814636/another-9figure-shortfall-requires-a-special-session.html