Proposed Budget Hits Hurdle in Committee

SANTA FE — A proposed $5.6 billion state budget hit a last-minute snag in a House committee Monday after Republicans objected that several of the Republican governor’s initiatives might get chopped if the state’s revenue outlook dims.

The Appropriations and Finance Committee postponed a final vote on the budget, and the chairman, Rep. Henry “Kiki” Saavedra, D-Albuquerque, said he was surprised by the GOP complaints because members of the panel had tentatively agreed last week on provisions of the spending plan.

The budget proposal calls for a spending increase of nearly $216 million, or about 4 percent, in the fiscal year that starts July 1.

However, the plan would leave about $41 million available for possible tax cutsor additional budget increases.

Economic growth is expected to generate about $257 million in new revenues next year that lawmakers can use for the budget or to cover the cost of tax reductions.

Of the proposed $216 million budget increase, about $14 million would be distributed to programs only if state revenue projections remain on target. The contingency was added because some lawmakers worry that revenues could end up falling short in the next year because of low natural gas prices.

About $6 million of the $14 million is earmarked for the governor’s educational initiatives, including more frequent testing of public school students and help for struggling schools. About $5 million is for higher reimbursement rates for health-care providers serving the needy in the Medicaid program, $1.6 million is for subsidized child care for more low-income families and $1.6 million is for recruitment of State Police officers.

Republicans objected that those programs were selected for the potential chopping block if the state’s revenues weaken.
— This article appeared on page A4 of the Albuquerque Journal