Financial crisis looms over New Mexico cities, counties

New Mexico

New Mexico state Sens. Bobby Gonzaels, D-Taos, and John Arthur Smith, D-Deming, listen to a presentation by Public Education Secretary Ryan Stewart on spending priorities for public schools in Santa Fe, N.M., on Thursday, Jan. 16, 2020. Spending increases on K-12 education, early childhood programs and tuition-free college are under negotiation as legislators prepare for a 30-day session. Gov. Michelle Lujan Grisham says she’ll consider red-flag gun legislation, proposals to legalize recreational marijuana and new incentives for localized renewable energy installations and electric-car purchases. (AP Photo/Morgan Lee)

SANTA FE, N.M. (AP) — A leading state legislator is warning that local governments from Roswell to Santa Fe are being swept away in the “economic tsunami” of the coronavirus pandemic and may fall back on the state for financial aid.

Senate finance committee chairman John Arthur Smith said Monday that gross receipt taxes on sales and services that support municipal and county governments are drying up, as cities such as Santa Fe reel from the collapse of the state’s tourism sector.

At the same time, he says the U.S. government has limited the options for states to funnel federal recovery dollars toward local governments.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Video Forecast

More Forecast

Don't Miss