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Study finds New Mexico not prepared for another recession

SANTA FE, N.M. (AP) — A study says that the New Mexico is not prepared to withstand another recession, should it come, given its depleted financial reserves. The Santa Fe New Mexican reports a "stress test" by Moody's Analytics that that looked at New Mexico's current state of finances was published earlier this month. According to the analysis, the state needs to have 10 percent of its budget in reserve in order to make through a moderate recession without resorting to many significant tax hikes or cutting back services. The study also determined the state would need 17.1 percent in reserves to stay afloat in a severe recession. State officials say New Mexico is set to finish 2017 with 5.5 percent of its budget in reserves and have 3.4 percent by the end of June 2018. ___ Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com