SANTA FE, N.M. (AP) - The Latest on a state budget crisis in New Mexico (all times local):
3:10 p.m.
A major credit rating agency has downgraded New Mexico’s financial standing shortly after the adoption of new budget solvency measures by the Legislature and Gov. Susana Martinez.
Moody’s Investor Services confirmed Wednesday the downgraded of the state’s general obligation bond rating from its highest rating of Aaa to Aa1. That will create slightly higher borrowing costs in the future. Thirteen states currently maintain the highest credit rating.
Martinez signed off this week on a package of measures designed to shore up the state’s general fund and restore depleted operating reserves.
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4:10 a.m.
New figures from state economists show New Mexico government continues to spend beyond its means even after the enactment of special solvency measures by the governor.
A report released Tuesday by the Legislative Finance Committee shows that state government still has $103 million more in planned expenses than estimated revenues for the current budget year.
New Mexico Gov. Susana Martinez signed off this week on a package of legislation designed to shore up the state’s general fund and restore depleted operating reserves.
Legislative analysts say state reserves remain at “risky levels.”
The state is expected to end the year with $30 million in operating reserve accounts - a tiny fraction of the $6 billion in approved annual spending. Agency spending has been slashed by $150 million.
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