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SANTA FE — A legislative task force started Wednesday to consider how to reorganize New Mexico state government to deal with the likelihood of lean finances in the future.
The director of the Legislative Finance Committee, David Abbey, warned the study group that New Mexico faces more financial problems in the next few years despite tax increases enacted this year to balance the budget.
New Mexico’s revenue growth is expected to remain weak and lawmakers will have to find a substitute for $300 million in federal economic stimulus aid that’s paying for some state operations, he said.
According to LFC estimates, a budget gap of more than $230 million is possible in the fiscal year that starts in July 2011, even without spending increases on programs, agencies and public education.
Task force members acknowledged that tough political decisions must be made on consolidating agencies and programs and possibly reducing or eliminating governmental services.
Abbey suggested there be a full review of state government, including how New Mexico finances public schools, colleges and universities.
Legislators predicted plenty of opposition to trimming government.
The group will make recommendations to the governor and Legislature in December.
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