Guv concerned about ‘excessive’ budget cuts

With the Legislature’s work done for now, Richardson has 20 days to act on bills

A bill that would make deep cuts to state government is one of several in the hands of Gov. Bill Richardson after the Legislature ended its special session Friday evening.

And while Richardson says he’ll carefully review the budget bills awaiting his action, he told the Albuquerque Journal that he is concerned about “excessive cuts to state agencies” and “dramatic cuts to Medicaid and other services.” He did say he was glad that education cuts “were kept to a minimum and kept out of the classroom.”

“However, I am deeply concerned that protecting capital outlay projects seemed to take priority over protecting people,” the Journal quoted Richardson as saying. “The 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. Layoffs are also likely under the Legislature’s plan.”

Richardson has 20 days to act.

According to the Journal, the package of bills provides $526 million to help the state deal with a projected budget shortfall of as much as $660 million. Cash reserves would be used to make up whatever remaining shortfall exists.

The largest bill in the package, approved Friday evening, would cut $206 million in recurring revenue. Provisions in the bill include making deep cuts of 7.6 percent to most state agencies, but smaller cuts to education, including trimming less than 1 percent from the budgets of K-12 schools.

The bill would trim 4 percent from most areas in the budgets of higher education institutions. It would cut the budgets of the judiciary, district attorneys, public defender and attorney general by 2 percent, and the budgets of elected officials other than the AG and governor by 4 percent. It would cut Medicaid funding by $4 million.

An amendment passed Friday would reduce cuts to the Department of Public Safety from 4 percent to 2 percent. Another would increase the number of political appointee jobs the government must trim – by reducing salaries and benefits – from 80 to 102.

‘More work to be done’

Following the Legislature’s adjournment, Lt. Gov. Diane Denish said in a prepared statement that she is “pleased that, after much debate, Democrats and Republicans were able to work together to address the current budget shortfall.”

“Important, short-term fixes were made during the special session, but there is more work to be done, and many difficult decisions lay ahead,” Denish said. “Just as all businesses and families do during tough times, government simply must find ways to stretch dollars further.  And together, we must do it in a way consistent with our priorities and our values.”

‘More work to be done’ was a common theme following the conclusion of the session, with lawmakers knowing they haven’t yet fully addressed the state’s financial woes. Many expect to have to deal with another massive shortfall in January.

The Senate GOP caucus warned in a news release following the conclusion of the session that the state “faces budget crisis next year despite vote on this year’s budget correction.”

Sen. John Arthur Smith, D-Deming and Senate Finance Committee chairman, said the work accomplished during the special session “is certainly not a perfect response to our budget crisis, but under the circumstances – the governor’s limitations and the uncertainty of how much we will ultimately need to deal with this situation when we come back for the regular session in January – this is at least something that will get us through the next several months.”

Senate Majority Leader Michael Sanchez, D-Belen, agreed.

“When the legislature returns this January, we will have to continue to look for other solutions to the continuing erosion of our state revenues,” he said.

This article has been updated for clarity.