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Albuquerque journal horoscopes2/17/2024 Jacob Johns was participating in the rally outside a Rio Arriba County building in Española, New Mexico, Lane said. "The fund could, for instance, support appropriations for planning, design and small projects," she said, "so that we're helping the state transition to a more normal bonding program where debt is used for larger investments and construction-ready things, and cash is used for the smaller stuff.Just before a Spokane Indigenous activist was shot during a rally in New Mexico Thursday, his friend Phreddie Lane had texted him, “I love you, bro.” New Mexico is an outlier in how it uses long-term debt to finance small projects and equipment, Carswell said. It could provide cash financing for prioritized capital projects, she said, and also act as a first resort for emergency debt coverage, if ever needed. "We're saying we're going to take out less long-term debt every year, and that's something that the rating agencies look upon more favorably," she said.Īnd the capital reserve, she said, could act as a savings and spending account for capital that grows over time. She said another goal would be to protect the state's bond ratings. "Those revenues are not going to be high forever," Carswell said.Īs a solution, Carswell said, the Legislature could dial down the maximum debt capacity and redirect savings from that into a capital reserve.Ĭarswell said setting the annual bonding capacity at a lower level than what's currently allowed would come with a few goals, like extending the overall life of the bonding program with expected revenue. Officials may have to turn to the state's general fund instead as a source for capital, according to the presentation, even when that fund could face "its own headwinds" from less oil and gas production. The state has no long-term backup plan to replace those revenues when they decline, she said. Declining severance tax revenues will likely make it difficult for the state to finance new capital projects and maintain current investments, according to his presentation.Ĭarswell said revenues that go toward supporting the debt that funds capital projects are nearly 100% dependent on oil and gas, a highly volatile market. He said that's because of the run-up in oil and gas-related revenue. Torres said if the capacity for the state's traditional capital outlay package continues as it is now, debt levels will close to triple over the next 10 years. "As we see our debt balloon, we know that this is going to factor into our debt ratings at the national level," he said. The state's bonding program is unsustainable because of multiple factors, Torres said, including rising debts, the volatility of the oil and gas industry, and difficulty estimating revenues from oil and gas. S&P Global Ratings said New Mexico has a willingness to support debt, a high level of expected future debt and liabilities, and a high level of contingent liquidity risk, he told lawmakers. Torres explained that the companies that rate New Mexico's bonds take into account revenue volatility, structural performance and liquidity risks. "We have room to do better, certainly," Torres said. Torres said New Mexico's bond ratings are in the bottom 20% nationally, and lower bond ratings make debt more expensive to take out.
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