The Legislature and governor are going to have a lot of money to deal with in the 2007 legislative session that begins in January. The continuing increase in oil revenues means the state will have an unprecedented $723 million to spend on increasing the budget and cutting taxes, and $1.08 billion to spend on capital outlay, an increase from the $913 million that was available during this year’s session. “We’re fortunate to have the amount of money we have in order to address the needs of New Mexico,” Rep. Luciano “Lucky” Varela, D-Santa Fe and chairman of the Legislative Finance Committee, told the Associated Press. But he also cautioned, appropriately, that increasing the state budget too much could hurt the state if a future downturn in the economy cuts revenue to the state. “It’s very difficult for us to try to contain the appetite for spending, both by the executive and the Legislature,” Varela told the news service. Continue Reading