·         New revenue forecasts, released in anticipation of the January regular legislative session, indicate that the tax revenues are down 20 percent from their peak in FY08. 

·         The Budget Balancing Task Force, appointed by Governor Richardson, has been holding a series of meetings around the state seeking ideas on how to deal with the budget crisis. Certainly more cuts will be on the table, but the fact is that it will be difficult to balance the budget without tax increases.

·         Among the revenue enhancement being discussed by the BB Task Force include increases in the top income tax rate, a 1 percent surcharge on high income tax payers, repeal of all or part of the gross receipt tax deduction for food, as well as other ideas. Eighteen options in all are being considered.

·         Turning to labor markets. The news continues to tell the same story as last month. Things are very bad, but not as bad as the previous month. This coupled with signs of recovery in the national economy brings hope that recovery may not be too far off.

·         Statewide jobs were lost at an annual rate of 3.3 percent in October based on the establishment survey, a slight improvement over last month’s revised 3.6 percent.

·         Only four sectors statewide saw growth—information services (up 11.0 percent compared to 12-months previous), health and education (2.9 percent), and government (1.0 percent). Leisure and hospitality was flat.

·         Employment in three sectors fell by more than 9 percent—construction (down 14.0 compared to 12-months previous), manufacturing (-13.1 percent), and transportation and warehousing (-9.4 percent).

·         Job loss in Las Cruces during the last 12 months, based on the October establishment survey, was -2.6 percent, typing last month’s number.

·         Only two sectors saw employment growth—health services and education (up 1.8 percent compared to 12 months ago) and government (0.4 percent). Financial services saw zero growth.

·         Four sectors in Las Cruces saw a loss in jobs of more than 10 percent—natural resource and construction (down 12.5 percent compared to 12 months ago), manufacturing (-12.1 percent), transportation and warehousing (-11.1 percent), and information (-10.0 percent).

·         Sapphire Energy, an algae-based biofuel manufacturer, will receive more than $104 million as part of a Recovery Act grant and a loan guarantee. 750 direct and indirect jobs are expected to be created.

·         The Dona Ana County commission has approved designation of Johnson Plate and Tower Fabrication, a wind tower manufacturer, as a project under the economic development ordinance. The move makes Johnson eligible for state funding. The company wants to build a 84,000 square foot facility in Santa Teresa.