Gov. Bill Richardson proposed today more than $700 million in budget cuts but no tax increases as he announced a plan to help the state weather the current economic crisis.
“My budget plan does not increase taxes, leaves essential services for New Mexicans intact and keeps substantial and responsible cash reserves to protect us against further shortfalls,” Richardson said in a news release.
The governor’s news release didn’t say how much, if any, money would be cut from public schools.
The plan also includes a strong effort to increase revenue through improved tax collections. The state has to address a current fiscal-year deficit and a projected deficit for the fiscal year that begins July 1 that are approaching a combined $1 billion. The current state budget is about $6 billion.
For the current fiscal year, Richardson says he’ll balance the budget with:
• Cuts to state agencies: $108 million
• Increased tax collections: $79 million
• De-authorization of capital outlay projects: $263 million
• Other one-time cuts: $48 million
That, Richardson says, will save a total of $498 million for the current fiscal year. For the 2010 fiscal year that begins July 1, Richardson proposes to balance the budget with:
• Cuts to state agencies: $290 million
• Increased tax collections: $34 million
• Other savings: $12 million
• Utilizing cash from state reserves: $119 million
“Because we have been fiscally responsible by expanding our economy and saving money during the good times, we are well positioned to deal with this worldwide financial crisis,” Richardson said. “Rather than irresponsible, across-the-board budget cuts that would slash services, we have targeted our efforts in a smart and strategic way.”
Meanwhile, the Legislative Finance Committee unveiled today its proposal for next year’s budget, which includes cutting state spending by 2.4 percent, or $146 million. That plan also calls for taking $94 million out of the state’s cash reserves and assumes $26 million in new revenue, according to The Associated Press. Its proposed cuts include $41 million from public schools.
This posting has been amended from its original version to take out speculation that was based on inaccurate numbers.