Gov. Bill Richardson today outlined what he called a "fiscally responsible plan" to immediately freeze certain spending and reduce the state's operating expenses by 5 percent, saving $114 million, in order to respond to the global financial crisis' impact on state revenue, the Governor's Office said in a news release.

Overall, the governor's plan, if adopted by state officials and the Legislature, could save as much as $440 million, the release said. 

"We will balance the state's budget. And we will do so without raising taxes, without tapping into the $600 million in cash reserves, and without reducing services for New Mexicans," Richardson said in the release. "We can accomplish this by taking simple steps like reducing expenses and eliminating capital outlay projects that are not moving forward."

The governor today directed executive agencies to take the following actions:

* To immediately freeze non-essential overtime and exempt employee annual leave buyouts;

* To freeze all hiring and pay increases, effective Nov. 15;

* To plan for 5 percent cuts in agency budgets for nonessential operations and miscellaneous expenses, including: contracts, grants, care and support services, out-of-state travel, IT equipment, IT exempt inventory and office supplies.

According to the release, the governor also directed executive agencies under his control to identify $5 million to $10 million in potential cuts from what is referred to as the Junior Budget passed in the last legislative session.

Richardson also is calling for the deauthorization of several capital outlay projects previously passed by the Legislature to free up additional funding, the release said.