SANTA FE, N.M. (AP) — New Mexico Gov. Michelle Lujan Grisham announced the need for a special legislative session to revise a recently signed state budget, address public health needs and provide economic relief in response to the coronavirus pandemic, as local infections continued to climb on Thursday.

A sputtering economy and plunging world oil prices are threatening to undermine major sources of state government income shortly after lawmakers approved a 7.5% increase in state general fund spending for the fiscal year starting July 1. New Mexico relies on the petroleum sector for more than a third of annual state income.

“To prepare for a special session, I believe that we must first understand the long-term effects and needs arising from this emergency, have updated and reliable revenue projections, and have a clear picture of the full spectrum of assistance that the federal government will be providing to states,” Lujan Grisham wrote in a letter to leading legislators in both parties. “All of this information will be clarified in the coming weeks.”

Health officials Thursday confirmed a second positive test for the coronavirus with no known connection to travel. There have been 35 positive tests statewide, with the majority in the corridor between Albuquerque to Santa Fe.

Public health officials have closed public schools, banned gatherings of more than 10 people and ordered the closure of indoor shopping malls, health clubs, athletic facilities, movie theaters and more while limiting restaurant and bar operations to takeout or delivery service. Autonomous, tribal-operated casinos across the state had all closed as of Thursday.

House Republicans including minority leader Rep. James Townsend said the state should consider freezing spending at current levels as an immediate precaution and grant tax-filing extensions. They warned that new emergency health restrictions may bankrupt many businesses.

On March 11, the governor signed a $7.6 billion state budget while vetoing $150 million in infrastructure spending. She approved across-the-board pay increases for state workers and school staff, and major new investments in public school education.

On Thursday, Lujan Grisham acknowledged deteriorating economic conditions in New Mexico.

“We are attentive to the reality of declining revenues, immediate fiscal impacts, the medium-to-long-term economic impacts that will arise from this crisis — in clear terms the very real and everyday stresses it has on our businesses, their workers,” she wrote.

It was unclear how the Legislature would conduct business under health restrictions that prohibit gatherings of 10 people or more.

In other developments:

— Lujan Grisham joined state governors in a conference call with President Trump, emphasizing the need for federal community development block grants that can be used quickly to “stand up” businesses and preserve employment, said Tripp Stelnicki, a spokesman to the governor.

The Democratic governor also brought up supply chain concerns regarding personal protective equipment for medical personnel and coronavirus testing supplies, and her hope for better federal coordination. “Where is it, who is making it and where is it getting deployed?” the spokesman said. “There really needs to be more clear communication.”

— Supermarkets implemented opening hours for the elderly. The state began limiting purchases to three items each for toilet paper, baby formula, diapers, over-the-counter medicine and more. At a grocery story in Santa Fe, register clerks called out the restrictions as long lines of shoppers formed.

— A drive-thru testing site in western Albuquerque closed temporarily because of snow.