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Tuesday, October 27, 2009
Gov. Freezes $150M for Projects
By Sean Olson
Journal Staff Writer
Gov. Bill Richardson is taking his own steps to shore up a state budget deficit of $650 million, announcing on Monday that he would "freeze" $150 million in state project funding until January.
Richardson still has more than two weeks to decide whether to sign a package of bills handed over by the Legislature during last week's special session, but has been critical of some of its measures — including a 7.6 percent cut to state agencies that could cause furloughs or layoffs.
"I am taking bold action since the Legislature chose not to cut even one dime of its pork projects," Richardson said Monday. "These pork projects should be the first to be cut before we take action that affects people."
Some lawmakers are calling the governor's capital outlay freeze an empty gesture.
An amendment to the one of the Legislature's bills last week, sponsored by Sen. Eric Griego, D-Albuquerque, calls for state officials to identify $150 million in projects that have not moved forward for lawmakers to cut during their regular session in January.
Griego said it was strange the governor made the announcement after the Legislature had already committed itself to cutting the project money.
Sen. John Arthur Smith, D-Deming, said Monday there isn't anything harmful about the freeze, but it won't change what the Legislature already planned.
"It's basically for press purposes alone," Smith said. "For the most part, it's pretty darn empty."
Richardson said Friday that he was satisfied with small cuts to education, but that "drastic cuts to state agencies will likely lead to dramatically reduced critical services, such as Medicaid funding for behavioral health care, children's health care and programs for the elderly."
He said he will seek public input before deciding whether to sign the bills.
"Until I get that input, every possible action, including vetoes, will be on the table," Richardson said Friday.
Richardson spokesman Gilbert Gallegos said Monday that the Governor's Office had already received about 100 phone calls and 182 e-mails with various suggestions.
The Legislature voted to cut $206 million in government spending and freed up another $320 million by raiding various state accounts, selling bonds backed by severance taxes and using federal stimulus money.
Any remaining deficits will be covered with reserves at the end of the fiscal year.
Lawmakers have been critical of Richardson's special session, claiming his rules tied their hands and led to only one option for fixing the budget — the cuts Richardson is now calling into question. Richardson called for no tax increases, minimal education cuts and low state agency cuts.
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