New Mexico Budget Crunch Ripples Through Hospitals, Museums

SANTA FE, N.M. (AP) — New Mexico state government is looking for new ways to conserve spending as it crosses the threshold into a new budget year, with the most pronounced changes set to ripple through Medicaid health care services for the poor and disabled. State general fund revenues were lagging by nearly 10 percent as the books closed Thursday on fiscal year 2016. The revenue downturn is linked to oil and natural gas prices, sales-style taxes and corporate income taxes. New Mexico is one of just eight states coping with downturns in general fund revenue. Most of them rely on energy production. Where some states have tapped rainy day funds or raised taxes, New Mexico has allowed its cash reserves to shrink and given state agencies new authority to transfer funds between programs.