University of New Mexico

New Mexico budget crunch ripples through hospitals, museums

New Mexico state government is looking for new ways to conserve spending as it crosses the threshold Friday into a new budget year, with the most pronounced changes set to ripple through Medicaid health care services for the poor and disabled.

State general fund revenues were lagging by nearly 10 percent as the books closed on fiscal year 2016, with dollars for May and June still untallied. The revenue downturn is principally linked to falling oil and natural gas prices, as well as reduced sales and corporate income tax receipts.

New austerity measures are driving up admission fees at world-renowned museums and historical sites, downsizing state health contracts for a...