UPDATED: New Mexico State Budget Revenues Plunge

RED RIVER, N.M. (AP) — Economists for the state of New Mexico say the flow of revenues to the state's general fund declined by more than 8 percent during the fiscal year ending in June as a slump in oil markets held back the local economy and state tax receipts. State budget experts announced on Wednesday an estimated $523 million decline in recurring revenues to the general fund. The decline leaves the state with a negative balance for readily accessible reserves and a projected deficit for the current budget year. Economists from the Legislature and three executive-branch agencies are providing a mid-year snapshot of state finances to members of the Legislative Finance Committee at a meeting in the mountain resort of Red River. The estimates are likely to set the stage for a special session of the Legislature in September to address last year's reserve shortfall and a projected deficit this year. Total general fund reserves declined to $130 million in June from $713 million in mid-2015 as the state dug into savings to stave off a budget shortfall.