Albuquerque–Susana Martinez, Republican gubernatorial nominee (photo left) released the following statement in response to news reports of New Mexico’s massive and increasing budget deficit:
“For months now, Diane Denish has been telling New Mexicans she has a plan to get us out of this mess. What she isn’t telling voters is that she – along with Bill Richardson – got us into it to begin with. The Richardson/Denish Administration has failed New Mexico. Today, more people are looking for work and we are on the verge of bankruptcy due to the reckless and abusive actions of those in Santa Fe. If we are to solve the problems facing New Mexico, we will require someone who is not beholden to the establishment and who will challenge the status quo. I have an economic plan that will create jobs and restrain spending in state government, put an end to the corruption running rampant in the Roundhouse and eliminate the exempt positions created to pay back supporters of the Richardson/Denish Administration. We can solve this budget crisis by growing New Mexico’s economy through assisting our small businesses and reducing the out-of-control spending in state government.”
BACKGROUND: “Just when Governor Bill Richardson and his Cabinet Secretaries say there’s nothing left to cut, it looks like they need to cut more. KRQE News 13 has learned state lawmakers will hear Wednesday how the state is at least $300-million in the hole. That means the Governor and his replacement have some painful choices to make. People just aren’t spending what they used to. That’s the big reason why the state won’t be able to spend what lawmakers planned. Wednesday they’ll hear new official revenue estimates showing the state in another big financial hole. According to Legislative Finance Committee Chair Rep. Luciano ‘Lucky’ Varela (D) of Santa Fe the state is between $30 and $40 million dollars short for the fiscal year (2010) that just ended a few weeks ago. That can be made up with reserves. But it gets worse. Legislative Finance Committee Vice Chair Senator John Arthur Smith (D) of Deming expects estimates to show lawmakers over-budgeted by around $150 million for the fiscal year (2011) that just started July 1st.
That means Governor Richardson will have to cut across state government and it could mean more furloughs for state workers or even salary cuts and layoffs. The only thing off limits will be funding for Medicaid and the Developmentally Disabled. Next year may be even worse. Lawmakers and the next Governor will have to come up with a way to cut at least $150 million more from the budget (2012) that kicks in next July.”(Michael Herzenberg, “New $300 Million State Deficit,” KRQE-TV, 7/20/10)
Martinez Comments on State Budget Deficit
The unemployment rate, presently averaging 9.5 percent, would average 9 percent next year under the new estimates. The Office of Management and Budget report has ominous news for President Barack Obama should he seek re-election in 2012, a still-high unemployment rate of 8.1 percent. Read more here:
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