Oil plunge upends state budget session in New Mexico

SANTA FE, N.M. (AP) — New Mexico lawmakers conferred with energy market experts and economists about plunging oil prices Wednesday as the Legislature crafts a new state budget that relies heavily on oil and natural gas revenues.

Jim Peach, a professor of economics at New Mexico State University, said the state would be wise to reconsider any spending increase this year because oil prices may remain low and also trigger production cuts at New Mexico rigs.

Alaska is facing an estimated $3.5 billion budget deficit for the coming fiscal year and has been using savings to get by, but legislative analysts say continued deficits of this size will sap the state's reserves by fiscal year 2020.