Budget Shortfall Surprise

How can anyone be surprised that the budget shortfall is much worse than projected? The outgoing Administration is putting a spin on it that doesn’t make any sense:

Richardson spokesman Gilbert Gallegos fired back, saying Martinez doesn’t understand the state budget and the growth of the Medicaid health care program.
Gallegos also criticized Martinez campaign promises to reject tax increases and balance the state budget while also avoiding cuts to Medicaid and public schools — pledge that didn’t differ from Denish’s campaign rhetoric.
Interesting. But, let’s get back to reality.  There is one reason the budget shortfall is worse than expected. Namely, the outgoing Administration spent most of the economic crisis believing in make-believe:

Economic analysts for Gov. Bill Richardson’s administration said Thursday they remain confident that New Mexico revenues will increase by nearly $300 million next year, a day after legislators voiced doubts about significant rebounds in the state’s economy.

The revenue estimates, which don’t factor in proposed tax increases, are key to ongoing budget negotiations between top-ranking Democrats in the House and Senate.

Welcome to the real world.

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