Natural gas prices shake up 2013 budget

From KOB-TV.com - It is cloudy with a chance of shortfalls, as new worries about the economy darken the skies over the state capitol, just in time for the start of this year's 30-day legislative session. Thanks to flat and stagnant natural gas prices, the legislature's revenue forecast for the next budget year is suddenly looking wobbly. Natural gas is even more important than oil in the state's economic picture, and prices and the future's market remain far below expected levels. Lawmakers and Governor Susana Martinez have been anticipating about $250 million in new revenues, but the dimmer outlook emerged Monday afternoon during a hearing of the Legislative Finance Committee. "I'm saying right now, at this point in time, in my eyes I'm a little apprehensive," said chairman John Arthur Smith, a Democrat from Deming known as "Doctor No" for his budget-hawk work ethic in the state Senate. "This is one of the legs that we rely on, natural gas revenues, and it's limping along right now." "We've got to deliver a budget by February 1st to the Senate side," said Rep. Larry Larranaga, a Republican representing part of Albuquerque's Northeast Heights. "Do we at this point continue with the forecast that we have?" Rep. Lucky Varela, a Santa Fe Democrat and longtime budget-man in the House, pointed out that right now there is no other forecast and there won't be a new one for another couple of weeks. "I'm hoping that we don't have to change our estimate downwards from what we're projecting today, and have to cut some of the expenditures that we're recommending in our budgets - either the executive or the legislative," Varela said. The governor's budget proposal includes about $55 million in tax breaks for small businesses and employers that hire veterans. The Legislative Finance Committee's budget plan would give state employees a one half of one percent pay raise and move the state back to paying a larger share of retirement contributions for state employees and public schoolteachers. The budget is the single must-do job of the 30-day session that starts at high noon Tuesday. Read more

Natural gas prices shake up 2013 budget