Sandoval News

With the coronavirus circulating and oil prices dropping, New Mexico's state budget could be in trouble.

The budget could potentially take a billion-dollar hit, but what's worse is that this number could rise, according to KOB.

State Sen. John Arthur Smith  (D-Deming) said New Mexico's budget is a "moving target," because estimate could increase, KOB reported. 

"Between the oil and the gross receipts, I estimate the hit to the state is going to be somewhere close to a billion dollars," Smith told KOB. "After watching this thing for a few days, I've increased that projection up to as high as $1.5 billion with what I'm seeing and what I'm hearing."

When non-essential businesses were ordered to be shut down by New Mexico Gov. Michelle Lujan Grisham to help prevent the spread of COVID-19, many state residents were hit hard, according to KOB. 

"The actions she's taken are, quite frankly, very painful with my constituents and small businesses, restaurants, hotels and that sort of thing but from a health and safety standard, I think you have to recognize the fact and I think New Mexicans will look back at this and be appreciative that she was proactive," Smith told KOB. 

But for lawmakers to address current issues, they will need to have more data and Smith told KOB that there likely won't be any better data until June or July of this year. 

Rio Grande Foundation's Paul Gessing told KOB that New Mexico should cut funding instead of increasing taxes. 

"The last thing we need is tax increases," he told KOB. "So really, this has to be cuts driven out of Santa Fe. We cannot afford tax increases at a time of this economic devastation."

Smith told KOB that he doesn't want to raise taxes either, but all other options are viable. 

"Obviously reoccurring expenditures-- all going to have to be on the table and looked at," he told KOB.