New Mexico Budget Officials Say Reserves Come First

Nov 17, 2016

Top budget officials for the state of New Mexico are placing a high priority on rebuilding state reserves that have been depleted amid a sustained downturn in the oil and natural gas sectors.

Finance and Administration Secretary Duffy Rodriguez said her agency has set a goal of restoring state reserves to 5 percent of the state's annual general fund appropriations.

Rebuilding reserves would shore up the state's credit rating to ensure low-interest borrowing and provide a buffer against economic volatility.

It is unclear how the state might set aside the money. State agencies still are wrestling with how to implement budget cuts approved by the governor and Legislature in October.

Rodriguez says it could involve more spending cuts and sweeping money together from idle accounts.