New Mexico In Depth--A gaping revenue shortfall and lack of reserves have New Mexico’s legislators worried about short-circuiting the progress of large investments made in early childhood and safety net programs in recent years. A steep decline in the price of oil has contracted an industry on which New Mexico relies heavily, leading to broad layoffs, sales of oilfield equipment, foreclosures and bankruptcies. That, in turn, has gutted the cash from tax revenues state leaders counted on to pay for state operations.

Santa Fe New Mexican--The chairman of the New Mexico Legislature’s budget-writing committee said Wednesday that, unlike the governor, he will not push to close the state’s current deficit by requiring public employees pay a greater share of their salaries into their pension accounts nor drain about $125 million in cash reserves from local school districts. The comment by Sen. John Arthur Smith, D-Deming, came as the Legislative Finance Committee unveiled its proposals for covering a projected revenue shortfall in the current fiscal year and for further squeezing of already tight finances for the budget year that starts July 1.