– Groups and agencies that suffered through another round of state budget cuts this year could be lining up soon after lawmakers announced the state is making more money that expected.
The Legislative Finance Committee projected an additional $87 million for the budget year that ended June 30. Most of the money is from an unexpected spike in gross receipt taxes and oil and gas revenues.
“We’d certainly like to see some of it earmarked for education,” said Tom Sullivan, Executive Director of the New Mexico Superintendents Association.
Public education was cut for the third straight year, leading to fewer teachers and more crowded classrooms. According to Rep. Larry Larranaga, R-, the public education budget was about $60 million less this year than last year, even though more general fund dollars were used this year.
“Over a three year period, somewhere between 2,500 and 3,000 jobs were lost in all different education areas in K-12,” said Sullivan.
But schools aren’t the only ones hoping for a little relief. Cash-strapped state agencies, such as the Children, Youth and Families Department and Corrections, probably wouldn’t argue if the governor undid some cuts. Neither would state workers if the governor did away with the hike in their pension contributions. The T.V. and film industry is hoping to cash in, too. The incentive program was capped at $50 million, a “job killer” according to many film industry members.
“By loosening or taking away that soft cap would show that New Mexico is serious about being competitive with other states,” said Rob Corlew, a production coordinator.
But the governor’s office said the $87 million is just a projection.
“The previous administration racked up hundreds of millions of dollars in deficits by spending money they didn’t have,” said spokesman Scott Darnell. “Governor Martinez is continuing to put the state’s financial house back in order and is not going to allow the state to go on a government spending spree and dig itself into another hole.”
Darnell said the governor won’t take up the projected money issue until January’s regular session. Even then, there’s no guarantee of increased funding for everyone. Darnell said the governor wants to make sure the state’s reserves are higher before making any decisions.
Currently, the state’s reserves are at 5 percent, or $270 million. Reserves are used to pay for disasters and emergencies.
Similar Posts:
- Film tax credit soars ahead of cap
- State preps for fed debt cash crunch
- Gov. ponders replacing water manager
- 284 bills waiting for Gov. action
- Gov.: Alter rules on foreigner licenses
Leave a Reply