I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
A report presented to the Senate Finance Committee (SFC) Thursday by the Legislative Finance committee (LFC) said New Mexico missed out on $14 million dollars because state agencies couldn’t or wouldn’t watch the cash flow.
Here’s how the process works. The state issues a check, or warrant, from a certain fund. The check is then paid from money in the general fund and later reimbursed from the original fund. It’s confusing for sure, but the bottom line is because state agencies were slow to move money between funds, or didn’t move the money at all–the general fund didn’t earn $14 million dollars worth of interest it was supposed to.
According the report obtained by The Independent, the three state agencies most accountable for overdrafts were: The Human Services Department, the Department of Transportation and the Workforce Solutions Department.
In the case of HSD and WSD the report says they need to “reconcile cash accounts on a timely basis” to help the cash flow easier. But in the case of DOT, the report says “the overdrafts in the agency’s GRIP project accounts are particularly troubling.” The report says DOT had money to reimburse the general fund but instead they left the money in accounts with the New Mexico Finance Authority. Those dollars were earning a bigger interest from those accounts then if DOT had moved the money. To quote the report:
“By not drawing funds from their accounts at NMFA on a timely manner the agency is earning a higher interest rate on its GRIP project funds at the expense of the GF (General Fund)”
The LFC concludes by saying law makers could consider provision allowing the state treasures office to impose a fee on cash overdrafts.
