Monday, July 27, 2009

NM Finances Slide

Probably no big shock to anyone but the state's financial outlook continues to get worse.

Here's how a newly released report from the Legislative Finance Committee and Department of Finance & Administration begins:

The balance in the state's bank account is dwindling, both
a victim and an indicator of New Mexico's economic slump.

Like a falling balance in a family's bank account, the state has less cash on hand to meet unexpected expenses or reductions in monthly income, or to invest and generate interest earnings.

The state's invested general fund balance stood at $1.6 billion at the end of May 2009, according to the state treasurer's investment report for June. The balance on the same date in each of the two previous years was about 50% more — $2.3 billion in 2008 and $2.5 billion in 2007.

It is normal for the balance to fluctuate, due to a mismatch in monthly expenditures and revenues, but the balance in 2009 is on a relatively steep downward trend compared to the past three years.


The report itself is below:

NM ECONOMIC SUMMARY 7-09

2 comments:

  1. Steve,

    I've been waiting for some enterprising local reporters to delve into the bonds secured by local governments during the past few years, since these were also, I presume, put through the New Mexico Finance Authority ringer. Have you seen anything along those lines?

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  2. I got called for jury duty last month, and at our orientation session they explained the reimbursement per hour and the travel allowance per mile which included the orientation session). I never got a check, finally called up today--NM has run out of money to pay jurors, so the court clerk never even sent the bill. She said they are trying to find some money...

    Maybe they should cut those fancy salaries the political appointees get by 40% or so.

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