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NM: Fiscal cliff may jeopardize state’s budget

By   /   December 4, 2012  /   News  /   No Comments

By Rob Nikolewski | Capitol Report New Mexico

DANGER AHEAD: No one is certain what will happen if Congress doesn’t reach a debt and tax deal.

SANTA FE — The good news for New Mexico taxpayers and lawmakers shaping the state’s budget?

The December estimate of revenue came out Monday and has been revised upward from August by $55 million, with $210 million in “new money.”

The bad news? We’ve got 28 days and counting for Republicans and Democrats in Washington, D.C., to avoid the so-called “fiscal cliff”. If they don’t, budgeting for New Mexico is basically anyone’s guess.

“Businesses have already begun scaling back investment, perhaps in anticipation of tax increase and spending cuts embodied in the ‘fiscal cliff,’” Department of Finance Administration Secretary Tom Cliffordsaid in a report to the Legislative Finance Committee. “If the cliff is not addressed, (Gross Domestic Product) growth could fall by as much as 3.5 percent, effectively ending the economic recovery.”

“It’s a major concern,” committee co-chairman Luciano “Lucky” Varela, D-Santa Fe, told Capitol Report New Mexico. “So in (the upcoming state) budget, we have taken some cautious recommendations in terms of federal funding.”

Read the entire story at www.capitolreportnewmexico.com