On Wednesday the office of the Governor and State Legislative Finance Committee unveiled thier proposals for fixing the the $2 billion deficit in New Mexico’s budget. Both plans offered solutions for the budget shortfall using a mix of federal stimulus funding, cash reserves and spending cuts to government programs and proposed projects. Some of the cuts proposed by the LFC and Governor include reducing or eliminating the annual pay increases for state employees, canceling some approved road construction and other infrastructure projects and reducing the funding for a newly approved early childhood trust fund by $20 million.
The LFC also includes the elimination of Governor Lujan Grisham’s $17 million tuition free college program, a cut not reflected in her proposal. Looking forward to the special session, Governor Grisham has said it’s “probably not the format” to address proposed tax hikes and other revenue-generating measures, including the legalization of recreational marijuana for adult users. Such tax measures will most likely be debated in January, when lawmakers could have to take additional budget-balancing steps. Read more HERE.