A report by legislative agencies says future federal spending cuts could hamper New Mexico's economic recovery. The latest economic summary by the Legislative Finance Committee and Legislative Council Service says 2013 federal budget proposals call for substantial spending reductions or slowing the budget's growth rate.
The agencies said "the negative impact of federal budget cuts will likely be broader and deeper in New Mexico than in most other states." That's because New Mexico ranks sixth in per capita federal spending — nearly $13,600 per person in 2010. The report said "New Mexico's ability to continue its slow but steady economic recovery" will depend heavily on future federal spending.
Revenues in the state's main budget account were up about 6 percent during the first seven months of the current fiscal year.