State suggests “cutting back on expenditures”

April 24, 2010

The New Mexico Department of Finance and Administration is recommending in a memo to local governments that municipalities and counties “take immediate action” to cut back on expenditures.

The memo from the budget and finance bureau comes amid concerns that tax revenues aren’t coming in as strong as expected.

“It is apparent at the state and local government levels that tax revenues are not going to materialize as initially projected for current year budgets,” writes John A. Gallegos, chief of the bureau.

Gallegos recommends 11 ways to cut back, including hiring freezes, salary freezes and reductions, furloughs, shortened workweeks, and layoffs.

He also suggests freezing new contracts, stopping across-the-board bonuses, and discontinuing funding to nonprofit organizations.

“Many proactive governing bodies have implemented these and other measures,” Gallegos writes.

Since March 8, the City of Belen has taken steps to reduce spending throughout city government. On Tuesday, the City of Belen laid off 25 employees.

Posted in: Budget