State: No services cut if feds blow budget deal - New Mexico treasury can cover expenses for 22 days

From the Santa Fe New Mexican.com - Gov. Susana Martinez's top budget official says no worker furloughs or cutbacks in state services are expected if federal revenues are disrupted because of a failure to raise the nation's debt ceiling. Finance and Administration Secretary Rick May said New Mexico has balances of $1.4 billion in the state treasury that can provide cash flow to cover expenses for about 22 days if federal revenues are temporarily disrupted. On an average business day, the state spends about $65 million for all government programs, including workers' salaries. "No one should be panicked about this because we do have some flexibility, and we're trying to maximize that flexibility," May said. "It's not the governor's intent to let any disruption affect services and people's livelihoods." Federal revenues account for about a third of the $15 billion in total annual spending by state government. Almost $3 billion in federal money last year went to Medicaid, which provides health care for a fourth of the state's population. The federal government pays for nearly $3 of every $4 that's spent on Medicaid in New Mexico. The program covers uninsured children, the poor and disabled. However, the state typically pays expenses for programs and services, such as Medicaid, and the federal government later reimburses New Mexico. Read more

State: No services cut if feds blow budget deal - New Mexico treasury can cover expenses for 22 days