Memo outlines budget hole for New Mexico state government

New Mexico

New Mexico Gov. Michelle Lujan Grisham puts on her face mask when not speaking during an update on the COVID-19 outbreak in the state during a news conference in the state Capitol in Santa Fe, N.M., Wednesday, April 15, 2020. (Eddie Moore/The Albuquerque Journal via AP, Pool)

SANTA FE, N.M. (AP) — The economic fallout in New Mexico from the coronavirus pandemic is likely to wipe out between $2.1 billion and $3.9 billion in previously anticipated state government income by mid-2021, a group of state economists announced Wednesday.

A memo from staff economists at three executive agencies and the Legislature outlined two scenarios for the economic downturn and recovery.

Both involve plummeting state revenues from personal income taxes and gross receipts taxes on sales and services, as well as reduced income from severance taxes and federal royalty payments on oil production.

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