Gov. Bill Richardson has signed into law a piece of the Legislature's special session solvency package that takes about $110 million from more than 50 state funds to help pay for government operations.

Richardson used his line-item veto authority to spare some of the proposed fund raids, or "sweeps". Those line-item vetoed include $800,000 for an ATV trail safety fund, $500,000 for domestic violence programs and $500,000 for the state auditor's office.

The bill, House Bill 3, had originally called for about $116 million in fund transfers. It's one of three key pieces of the plan lawmakers passed to help plug a $650 million budget deficit during a special session that ended Oct. 23.

Richardson has until Thursday to act on the other bills passed during the seven-day special session.

For more details, check tomorrow's Journal.

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A public employee union that represents 10,000 state workers is urging Gov. Bill Richardson to veto a legislative budget-cutting bill that would slash more than $93 million from state agency budgets.

Officers with the American Federation of State, Couny and Municipal Employees union announced today in a press release they believe the budget cuts, which were approved last week at the end of a seven-day special session and average 7.6 percent for state agencies, are too drastic.

"These cuts would have a negative impact on our already overcrowded prisons, they would make it more difficult for state police officers to patrol our highways and they would cripple the jobs of those at CYFD who take care of our youth," said Andrew Padilla, president of AFSCME Council 18.

New Mexico faces a $650 million deficit and lawmakers were instructed by Richardson prior to the special session to balance the budget without using tax increases or impacting classroom teaching, as well as avoiding employee layoffs and furloughs.

Richardson's own budget-balancing plan called for about $67 million in state agency cuts.

AFSME, which represents 6,500 rank-and-file state workers in New Mexico among its 10,000 total members, is among the groups that have advocated for tax increases to be used to help balance the revenue shortfall.

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A former deputy in the State Investment Council is the new interim chief investment officer for New Mexico after Gary Bland, who had previously held the position, resigned last week under political pressure.

Bob Jacksha, who has served most recently as chief investment officer for the state's Education Retirement Board, was named to the post today by Gov. Bill Richardson.

He assumed his new duties immediately, appearing before the SIC board this morning at its regular monthly meeting.

Richardson also named Doug Brown, the former fill-in state treasurer, to head up a five-member search committee for a permanent new chief investment officer.

Bland, who had been the SIC's chief investment officer since 2003, stepped down last Wednesday amidst allegations he had pressured firms seeking state investments to hire certain third-party "placement agents."

Read tomorrow's Journal for more information.

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The state Legislature adjourned Friday night after approving a package that was light on education and health care cuts, but heavy on state agencies.

Gov. Bill Richardson now has the power to sign or veto the bill. He will also have the authority to veto any parts of the package meant as a stopgap to a $650 million budget deficit.

Lawmakers packed up the session after approving a bill that would cut about $206 million in spending, including a net cut of $23 million to education -- or less than 1 percent of the education budget. The state cut Medicaid by only $2 million.

State agencies will face 7.6 percent cuts. The governor's office and each state agency will decide where to make the spending trims.

Lawmakers were pleased there was finally a consensus after seven days in session, but left with somber warnings about more cuts and possible tax increases in January's regular session.

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