By: Trip Jennings 12/09/08 12:49 PM
SANTA FE — Gov. Bill Richardson’s budget staff on Monday offered a view of the state’s deteriorating financial situation and proposed solutions on how to fix it. But not everyone was convinced that the administration’s view of the crisis reflected reality.
“They’re downplaying how serious the problem is at this stage,” Sen. John Arthur Smith, D-Deming, chairman of the Legislative Finance Committee, said of the Richardson administration.
If this year’s budget gap worsened, Smith said, “I wouldn’t be a bit surprised,” especially if the price of oil and natural gas continues on its downward trend.
Rep. Donald Bratton, R-Hobbs, an oil industry veteran, also criticized state economists’ predictions of natural gas prices as overly optimistic. If Smith and Bratton are right, New Mexico could be in for some serious financial pain.
The state is looking at a $450 million shortfall this fiscal year and a gap nearly as large in the next fiscal year. And state lawmakers must tackle both this year’s and next year’s budget gaps during the 60-day legislative session that starts Jan. 20.
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Tuesday, December 09, 2008
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who'd a thunk that nm legislators would be hoping for a raise in the price of oil and gas?
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