Gov. Bill Richardson (Photo by Heath Haussamen)
Gov. Bill Richardson today unveiled his plan to address a $441 million shortfall in the state’s current fiscal year budget.
“As promised, my plan closes the budget gap in a fiscally responsible way, without cutting education or increasing taxes,” Richardson said in a news release. “This plan, which is based on current revenue projections, is meant to start the discussion to resolve this deficit. I look forward to hearing additional ideas that legislative leaders may have.”
The release states that Richardson and legislative leaders have “jointly agreed that it would be premature to consider tax modifications during the special session,” which Richardson has said he plans to call in October.
Richardson didn’t include the full details of the plan in his news release, but said he presented his plan today during the first meeting between members of his staff and legislative leaders who are negotiating a budget fix.
Here’s what Richardson did say about his proposal in the release:
“The Governor’s plan reduces expenses and utilizes available funds totaling $444 million for the 2010 budget year, while keeping cash reserves at 8-percent. The plan does the following:
“1. Agency Spending — Cut budgets by 3-percent, excluding public schools, saving $100 million.
“2. Education Funding – Use $91 million in federal stimulus money to prevent cuts to public school spending for FY 2010.
“3. Bonding Capacity — Divert $135 million in available short-term bonding proceeds from future capital projects to operations.
“4. Capital Outlay — De-authorize between $60-$75 million in previously appropriated capital outlay projects — cancelling one-third of the Governor’s projects; one-third of the Senate projects; and one-third of the House projects.
“5. Retirement Funds — Delay General Fund increases to retirement and Retiree Health Care Authority funds — saving $21 million.
“6. Cash Balances — Use $40 million in available money currently sitting in state agency treasurer and bank accounts, as well as special fund balances. Of that, $20 million will be withdrawn from the College Affordability Fund — with the intent to replace it in future years.”