Michelle Lujan Grisham is directing executive agencies to reduce annual spending obligations by 5% to help ease an anticipated budget deficit for the coming fiscal year. SANTA FE — The administration of New Mexico Gov. KOB You have permission to edit this article. Jens Gould covers politics for the Santa Fe New Mexican. All Rights Reserved. If you have a subscription, please log in or sign up for an account on our website to continue. Please purchase a subscription to read our premium content. A key legislative panel released a preliminary proposal Thursday for fixing a projected $991 million state budget gap for the next fiscal year. New Mexico has so far steered away from furloughs that were instituted in the wake of the Great Recession. New Mexico state government has tapped $750 million in federal coronavirus relief funds and is rapidly drawing down financial reserves that stood at $1.5 billion in June. SANTA FE, N.M. (AP) — New Mexico’s capital city is forecasting a budget deficit of $100 million in the upcoming fiscal year that city officials say is the result of … Get up-to-the-minute news sent straight to your device. Lawmakers will review the preliminary proposal, which was drafted by Legislative Finance Committee staff, and will release an official budget recommendation before the regular session begins. | The city has been working with economists at the state and other organizations to help understand how they are estimating revenues in this uncertain time and what to expect for Santa Fe economy. Advertising. New Mexico faces projected $991M deficit in fiscal year 2022, Legislature | New Mexico Legislative Session, An eye for the sky: Ginsburg was drawn to Santa Fe, Disgraced Democratic senator embraces rival party, Hundreds of SFPS teachers, staff ask to stay home, shift hours, Two arrested after armed robbery at Santa Fe hotel, The Pantry will expand into former L'Olivier space downtown, Governor eases some pandemic restrictions, Jury convicts Redwolf Pope of rape, voyeurism, Santa Fe educator, musician shared love of mariachi, SFPS forges ahead as teachers push back on reopening, Santa Fe High grad to receive award for heroism, Trump's rush to replace Ginsburg risky for GOP senators, Santa Fe parents charged with abuse in teen son's cancer death, Woman issues warning after attack in Santa Fe pedestrian tunnel, O'Reilly Auto Parts on Airport Road fined $79,200 for mask violations, Lujan Grisham apologizes after Española mayor rips mask comments, New health order to revive indoor dining in New Mexico, Santa Fe mayor gets into public spat over De Vargas statue with Spanish cultural group leader, Bicyclist killed in crash near Santa Fe High School, Young New Mexico students could return to classroom after Labor Day. Lawmakers and Gov. On your next view you will be asked to log in to your subscriber account or create an account and subscribepurchase a subscription to continue reading. “There’s a lot of heavy lifting that’s going to have to be done.”. The projected gap for the upcoming fiscal year follows an estimated $46 million shortfall in the current fiscal year that triggered furloughs and spending and hiring freezes. | Public Files & EEO A memo to state agencies obtained by The Associated Press calls for a 5% reduction in general fund spending levels for the fiscal year starting on July 1, 2021, compared with current-year obligations. “We’ll just have to be a lot smarter, more creative, more flexible and adaptive as we continue to deal with this unprecedented budget shortfall.”. “There is a worst-case estimate, which would be triggered by a second wave infection (of COVID-19) that shuts down the economy again,” Webber said. The 5 percent cut to recurring spending would around $350 million, Sallee said. Any person with disabilities who needs help accessing the content of the FCC Public File may contact KOB via our online form or call 505-243-4411. The projected deficit for the upcoming fiscal year that begins July 1 includes an estimated $31 million shortfall in the general fund, which McCoy called the “meat and potatoes” of city government because it pays for day-to-day operations. Site Map, This website is not intended for users located within the European Economic Area. Finance officials are suggesting that state agencies delete staff positions that have been vacant for more than two years.