It looks like the state’s coffers are going to be overflowing once again when the Legislature meets in January.
The state should collect about $130 million more than anticipated in the current fiscal year because of economic growth and energy prices, the Associated Press is reporting. In addition, the Legislature and governor should have almost $450 million in new money they can add to the budget, use to cut taxes or put away for a rainy day.
The forecast, which the news service reported will be presented to the Legislative Finance Committee at a meeting today in Ruidoso, was prepared by the
So state leaders will be in what has become a familiar position when the Legislature meets in January: Does the state continue to increase spending significantly, give large tax cuts or save for the day that oil and gas prices drop and the state’s revenue takes a hit?
Gov. Bill Richardson has successfully pushed for large increases in spending each year he’s been in office. Many prominent lawmakers have become increasingly concerned in recent years that the budget has increased too rapidly and will lead to an eventual cut in program funding or increase in taxes when there is an economic downturn.
Overall, the state expects to take in $5.9 billion from recurring revenues this budget year, an increase of 3.6 percent from last year, the news service reported. The current budget includes almost $5.7 billion in spending.
The state expects to collect $6.1 billion in the 2009 fiscal year. That’s the budget that will be created in January.
“As a result of our fiscal stewardship and the strong economy, we are in a position to continue to invest in priorities like health care and education, cut taxes and maintain healthy cash reserve levels,” he said in a statement to the news service.