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Study: N.M. not prepared for recession

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SANTA FE (AP) — New Mexico is not prepared to withstand another recession — should it come — given its depleted financial reserves, according to the findings in a new study.
A “stress test” by Moody’s Analytics that looked at New Mexico’s current state of finances was published earlier this month, the Santa Fe New Mexican reported .
The state needs to have 10 percent of its budget in reserve in order to make it through a moderate recession without resorting to many significant tax hikes or cutting back services, according to the analysis.
The study also determined the state would need 17.1 percent in reserves to stay afloat in a severe recession.
With budget shortfalls pushing lawmakers to move money from the reserves to cover various areas of need, New Mexico currently doesn’t come close to the bar set by the analysis.