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Wednesday, October 14, 2009

Richardson Rejects Budget Proposals

By Dan Boyd
Journal Capitol Bureau
       SANTA FE — Gov. Bill Richardson late Tuesday rejected legislative proposals to plug a state budget gap that's now expected to top $650 million, saying at least two of them would cut too much money for public schools.
    Richardson called for lawmakers to try again before a special legislative session on the budget starts Saturday.
    "Governor Richardson has studied the legislative proposals and finds the cuts to education unacceptable because of the severe impact to teachers and kids," Richardson spokesman Gilbert Gallegos said. "The governor wants one proposal from the Legislature, not three, that makes fiscally responsible cuts without hurting schools."
    Rep. Luciano "Lucky" Varela, D-Santa Fe, chairman of the Legislative Finance Committee, said Tuesday that he and other lawmakers are working on a fourth, modified proposal.
    Richardson has proposed balancing the budget with a 3 percent across-the-board cut to state agencies, cancellation of stalled infrastructure projects and delay of approved increases to state retirement funds. Public schools would be excluded from cuts.
    Legislators countered last week with three options to generate $650 million in savings. They are:
    n An across-the-board 3.5 percent cut to state agencies, including K-12 spending, in addition to a 2.5 percent salary cut for state employees that would go into effect Oct. 31.
    â–  An across-the-board 4.7 percent cut to state agencies and public education with no decrease in salaries.
    n A 16.3 percent cut to state agencies, excluding K-12 public schools and higher education.
    Top state lawmakers have said it's not feasible to exclude K-12 spending — which makes up more than 40 percent of the state's $5.5 billion budget — from a budget-balancing solvency package.
    "That's the sticking point right now," Varela said, referring to disagreement with the governor on public school spending.

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