
Legislative Finance Committee Chair Senator John Arthur Smith issued the warning during a meeting Tuesday in Santa Fe.
He questioned whether state agencies have any backup plans for reducing spending.
Legislative analysts say agencies already have asked for $85 million in supplemental appropriations to make it through the rest of the fiscal year. That includes some $47 million to cover growing Medicaid costs.
Analysts and lawmakers say they'll have a better idea of whether the state will be able to make ends meet next year when new revenue estimates are released in early December.