Pub. 13 2016 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 8 EXECUTIVE VICE PRESIDENT’S MESSAGE JOHN W. ANDERSON, EXECUTIVE VICE PRESIDENT New Mexico Bankers Association It is fair to say that New Mexico’s economy is not robust. In fact, the New Mexico state government must come up with at least $700 million in the very near future. Spending in the fiscal year 2017, which began July 1, 2016, is expected to exceed revenue by $450 million. New Mexico Economy and State Budget It is fair to say that New Mexico’s econ- omy is not robust. In fact, the New Mexico state government must come up with at least $700 million in the very near future. Spend- ing in the fiscal year 2017, which began July 1, 2016, is expected to exceed revenue by $450 million. It is anticipated that the state will face approximately a $211 million defi- cit in the 2018 fiscal year Why such financial chaos? Fiscal year ’16, which ended on June 30, 2016, was chal- lenging as market prices for oil and gas col- lapsed, contributing greatly to an already weakened economic environment in New Mexico. Gross receipts, compensating tax, corporate income tax and severance tax rev- enues all declined significantly. Employment growth in the state this year has been very slow. Employment grew 1.2% or 9,600 jobs compared to the previous year. The unemployment rate is approximately I n this issue of the New Mexico Bankers Association Digest, I want to discuss two important issues-the state of the New Mexico economy and budget and a recent report preparedby the President’s Council of Economic Advisors concerning the condition of community banking: The New Mexico Economy and the Health of Community Banking