Gov. tells agencies to cut 5%, $990 million deficit looms, but NM “invests” $300 million on early childhood programs

According to the Santa Fe New Mexican Gov. Lujan Grisham has asked State agencies to make across-the-board cuts of 5%. The interesting thing about these cuts is that they are in advance of FY 2022 which doesn’t begin until July 1 of 2021 or 10 months from now.

The article further notes that, “New Mexico is now heading into the 2021 legislative session with a possible $990 million deficit for fiscal year 2022” although subsequent economic data has indicated that the budget situation won’t be so dire, but a lot can happen between now and July, 2021.

Of course, while these cuts are being made and budget chaos continues (with potential, large cuts and tax hikes in the upcoming legislative session), the State is still creating a $300 million early childhood fund for pre-K programs the data for which are very skimpy.

Changes to New Mexico’s shutdown at the hands of Gov. Lujan Grisham, depressed oil prices, and high unemployment rate could also have significant impacts on the budget.