Skip to comments.Richardson Drops Bomb (NM - reveals additional $190 million deficit)
Posted on 11/12/2010 4:07:55 PM PST by CedarDave
New Mexico's budget crunch for the coming fiscal year could be $190 million worse than previously thought, and announcement of the bad news set off another fiery exchange between the outgoing administration of Gov. Bill Richardson and Gov.-elect Susana Martinez.
Richardson's finance secretary Dannette Burch said Thursday that Martinez and state lawmakers will face a $450 million revenue shortfall for the fiscal year, starting next July 1, just to maintain the state's current level of services.
That's a much higher number than the Legislative Finance Committee's earlier projected shortfall of $260 million.
There have already been spending cuts in Santa Fe and at colleges and public schools around the state because of recession-triggered state revenue declines.
After Burch disclosed the new shortfall estimate Thursday, Martinez accused the Richardson administration, which has less than two months left in office, of hiding budget information and playing "financial shell games."
"The revelation of a near half-billion dollar deficit is far worse than expected and confirms our suspicions that the Richardson/Denish administration has been hiding the ball all along with respect to the true budget deficit," Martinez said in a statement.
(Excerpt) Read more at abqjournal.com ...
The additional $190 comes mostly from non-recurring federal money, such as the stimulus and other programs, that will expire next year. Richardson has been using this money to prop up some of his favorite programs such as the Rail Runner and has been doling out discretionary federal stimulus money to various projects instead of holding it to offset the budget deficit.
NM list PING!
(The NM list is available on my FR homepage for anyone to use. Let me know if you wish to be added or removed from the list. For ABQ Journal articles requiring a subscription, scroll down to the bottom of the page to view the article for free after watching a short video commercial.)
It’s Bush’s fault! Hey California only wishes their debt was in the millions instead ob BILLIONS!
Liberals, Liberals everywhere.
Richardson is a clintonoid crook.
Interesting in the timing of Richardson’s announcement - the week after the election.
Sounds like the surprise mess Corzine left Christie.
Just deport the Illegals.
Yeah, one story I saw quoted a couple of people saying something along the lines of I guess Martinez won’t be able to keep her promises not to raise taxes now, will she? Smirk, smirk.
She will if she cuts deep enough. Of course it will be the dim legislature that won’t allow that to happen.
But the NM educational establishment and other trough feeders will play this as Susana’s fault. Screw the NM EE - with results like they continue to turn out, they should be fined, not funded.
Only a 450 million dollar shortfall for NM?
You guys are doing much better than Texas.
Richardson and Martinez had a "cordial" get acquainted meeting earlier this week. The day after that, it was revealed that he is moving many of his political cronies from appointed positions to civil service positions where once established can't be touched. She has put him on notice that anyone moved after the election (Nov 3) will be found out and fired. Then he dropped the B-bomb the following day.
How can tell if a liberal is lying?
No judgement needed.
They ALWAYS lie.
Martinez should shut down Rail Runner, demolish it, and auction off the rails, ties, seats etc one at a time after a huge PR publicity campaign, and put all the proceeds into balancing the state budget.
Even if the auctions are a net loss, it would still be less expensive than continuing operations.
Martinez should ask for an independent audit of EVERYTHING right before she takes over. And have it posted on the state website and published in every newpaper in the state.
Now, by his own failures in NM, Richardson will have to move to Mexico to get work.
And SELL THE PLANE!!
I hear Dannette Burch is hot.
Check Richardson’s sock drawer. He probably stole half of that.
Too bad Richarseson didn’t take Ron Brown’s seat on that last “trade mission”.
What a lowlife dirtbag. Wish I could say I am surprised but my friends down there clued me in to his sleazy ways a long time ago.
"Thanks for the bill, Bill!"
As I said above, federal funds are going to disappear after June 30 and she needs to eliminate state funding, too. Right now the majority of operating funds come from taxpayer-approved sales taxes in the counties where it operates (Valencia, Bernalillo, Sandoval, and Santa Fe). Let the transportation district raise fares to make up the loss. Even if the auctions are a net loss, it would still be less expensive than continuing operations.
Even if the auctions are a net loss, it would still be less expensive than continuing operations.
All public transit systems require levies against non-users to operate. Most run on a ratio around 5 percent user funded.
The best thing she could do to help her budget is to dismantle public funded transportation.
Sell the damn railroad, salvage it out.
Sell the plane.
Deport the illegals.
Deport Richardson’s cronie appointees,
Pull all state salaries into line with local salaries.
There, that will solve most of it.
One of my liberal clients has a retirement home in the mountains north of Albuquerque. He was so excited and pleased because Richardson was going to spend millions of dollars of federal money to upgrade the bathrooms at all the state and federal parks in the state. Now he’s moaning because the roads up to their house are in horrible condition and there is no money to fix them.
NM is a much smaller state than Texas. Texas needs to cut out some of the local functions taken over by the emipre. LOL
It will help Texas to have some protection in the Congress from Obama’s endless economic puhishment directed at the State’s industry. The Soros crowd doesn’t like Texas much.
The tax payers of Texas are looking at a 25 Billion Dollar budget shortfall, what dwarfs the New Mexico budget shortfall even on a per capita basis.
And while there are White House policies that hamper the economies of Texas and every other state, those policies do not account for the 25 Billion Dollar budget shortfall in Texas.
Instead, the shortfall is a result of out of control state spending which is the responsibility of the governor and state legislature.
what? are you kidding me? all this time i thought it was only we losers in California that had this problem... but Texas? a conservative state? the conservative state of Texas? and i keep getting freep messages telling me to leave Cali for Texas! i'm shocked! shocked, i tell you!
Both Texas and California have budget shortfalls of around 25 billion dollars with California having 13,000,000 more people than Texas.
Therefore, Texas residents are much deeper in state debt than even the people of California.
Texas has a deficit of “as much as” 18 billion; not 25 billion. http://online.wsj.com/article/SB10001424052748704513104575256734081528528.html
We have a rainy day fund of over 8 billion. http://sunshinereview.org/index.php/Texas_state_budget
So, please, we are bad enough without exaggeration. Don’t make it worse than it is. Ten billion (on the maximum side) is freaky for Texas. We are no where near California’s 25 billion short. Also we are not socialists - the budget and scope of government will be cut as needed.
Look at my post above. Texas is at the most $10 billion short - not 25 billion as claimed. No, Texas is not a bunch of dysfunctional communists, foreigners and homosexuals like Calinfornia. They will cut the State’s scope of work to match their income.
As I demonstrated, your numbers about Texas are dead wrong.
well that's not what Trumandogz says... and at least Califoria doesn't claim to be a conservative state... but how is it that THEE conservative state of Texas is so far in debt? how can that be? it's the most conservative state that's ever been a state... it's a state that houses no liberals... no illegal immigrants... not even one homosexual... and yet?
i supposed i ought include /s...
I gave links. Trumandoz is seriously out of wack with reality. Perry says he is 5 billion over. The sources - liberal sources - say he’s more than that. We will see but we will handle it like we always do. Sorry, you Californians are in a class of your own. :)
Instead of reaching back six months to find a story about Texas’ 18 billion dollar shortfall, I will instead cite much more recent data on the Texas budget shortfall which projects the Texas budget shortfall to be 25 billion.
I think I saw her down at The Bottle Shop last night.
The New York Times is your source? Straight out of Crazy Bill White’s campaign hysteria.
Actually the amount they are looking to cut in this actual budget cycle for the year is five billion. I asked a friend who is an State agency head. That is a lot! And it could be more if the elected officials don’t vote to use the rainy day fund. Either way, unlike California, they have to balance the budget in Texas and they will.
Is Texas handing out IOUs instead of real money? How do Texas’s tax rates compare to California’s? Are people and business’s fleeing Texas the way they are fleeing California? Just wondering..
No, I’m just opposed to out of control government spending and oppose it no matter the affiliation of those who are doing the spending.
Hopefully, the next Session in Austin will lead to major cuts in spending.
Amen to that.
Don’t sell the railroad until you run Richardson out on its rails.
“..but Texas? a conservative state? the conservative state of Texas?”
There is a lot in Texas that isn’t conservative. Not as widespread as in commiefornia, but definitely there for all to see.
Texas is conservative compared to California by a long shot. I hope our budget deficit chops out some liberalism.
this is true... but no one thinks otherwise about our state... it's liberal as can be... but Texas? how did Texas get in this situation in the first place? this so very red conservative state of Texas? how? i am shocked... just shocked... ;-)
It appears I was misinformed..
In New Mexico that is hot, hot, hot.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.