Gov. Martinez contemplating special legislative session

New Mexico Gov. Susana Martinez is contemplating the need for a special legislative session to address dwindling state operating reserves.

Martinez on Tuesday said her office has been working for weeks with executive agencies and a key legislative committee on how to resolve the state’s fiscal imbalance and that a solution may involve a short, pre-negotiated Legislative session.

The Albuquerque Journal reports the state is facing a potential $600 million budget deficit.

New Mexico is one of several states dealing with general fund declines linked to reduced energy prices and production.

The Republican governor spoke at a meeting of the State Investment Council. The council has postponed decisions on shifting investments in a $220 million Tobacco settlement fund that might be used to replenish state operating reserves.

Rainy day funds overseen by the state of New Mexico have been drawn down by almost 2 percent during the past year as spending on public education and infrastructure projects outpaces investment income and revenues linked to the oil and natural gas industries.