SANTA FE, N.M. (AP) - The Latest on efforts by New Mexico lawmakers to resolve a state budget crisis (all times local):
4:40 p.m.
New Mexico Gov. Susana Martinez is praising efforts by lawmakers to balance the state budget for the coming fiscal year, though she intends to veto outright tax increases.
The Republican governor issued a statement by email Thursday saying that she is “pleased that we were able to come to an agreement on the budget.”
The Democratic-led legislature delivered a collection of tax and savings measures aimed at filling a budget shortfall for the fiscal year starting July 1. The governor has the long weekend to act on legislation that would reinstate funding to the Legislature and state universities that she vetoed earlier this year.
The budget can be narrowly balanced with the approval of a bill to suspend infrastructure projects and use severance tax bonds to shore up state finances. Martinez says she supports the measure.
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3:35 p.m.
The New Mexico Legislature is recessing for the long weekend after delivering a collection of tax proposals and other measures aimed at filling a budget shortfall for the upcoming fiscal year.
Lawmakers plan to return to the state Capitol on Tuesday afternoon.
Democratic leaders say that will give Gov. Susana Martinez time to review the legislation passed over the last two days of the special session.
Lawmakers are trying to resolve a budget crisis linked to a downtown in oil prices and a weak local economy, and restore $765 million in state spending that was vetoed by the governor.
The governor has said she’s confident funding can be restored for higher education but she has voiced opposition to tax hikes without any meaningful tax reform.
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2:30 p.m.
A tax hike on gasoline has been approved by the New Mexico Legislature despite opposition by Republican Gov. Susana Martinez.
The state House and Senate gave final approval Thursday to tax increase on gasoline and diesel of 5 cents per gallon and a $55 registration fee on interstate freight trucks. Proceeds would help rebuild depleted general fund reserves and pay for road maintenance and construction.
Martinez vetoed similar tax proposals in April and has vowed to do it again. She has denouncing gasoline taxes in particular as a burden on working families. All Republicans on the Senate committee voted against the tax increases.
Lawmakers are trying to resolve a budget crisis linked to a downtown in oil prices and a weak local economy, and restore $765 million in state spending that was vetoed by the governor.
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2:10 p.m.
A bill that would impose new taxes on online retail sales and nonprofit hospitals in New Mexico has been approved by the Legislature for consideration by the governor.
The state House and Senate gave their final approval Thursday to the budget-balancing measures. It was unclear whether Republican Gov. Susana Martinez would sign the bill.
The legislation also would create a new state rainy day fund from oil and natural gas proceeds for use during future fiscal emergencies, and suspend contributions to a legislative retirement account to conserve state funds.
Without revenue increases, New Mexico won’t have enough money to restore higher education funding that was vetoed by Gov. Susana Martinez last month. General fund dollars for the Legislature as well as state colleges, universities and specialty schools are scheduled to run out July 1.
Lawmakers are grappling with a downturn in tax revenue linked to energy prices and a weak economy.
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12:10 p.m.
A proposal to overhaul New Mexico’s sales tax has been blocked by Democratic lawmakers and will not be voted on during a special legislative session.
A House panel on Thursday voted 6-5 along party lines to end consideration of the Republican-backed bill to do away with a variety of tax breaks and lower overall tax rates.
Without the reforms, New Mexico Gov. Susana Martinez has indicated she will not approve any other tax revenue increases. Democratic lawmakers say the tax reforms were drawn up hastily and could undermine state revenues without further study.
Lawmakers are grappling over how to end a budget crisis linked to a downturn in oil prices and a weak local economy.
Martinez last month rejected a variety of tax hikes, while vetoing $765 million in state spending for the fiscal year beginning July 1.
The Democratic-led Legislature has approved bills to restore that funding to state universities and the legislative branch, using money from severance tax bonds to fill a budget shortfall. Many lawmakers say additional tax revenue increases are needed.
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10:50 a.m.
Republicans in the New Mexico Legislature are not giving up on an ambitious proposal to reform the state’s gross receipts tax on sales and business services.
GOP Rep. Jason Harper of Rio Rancho presented legislation Thursday that would do away with a variety of tax breaks to bring in sales tax revenue from more sources - at a lower overall sales tax rate.
State budget analysts warn the bill would have unpredictable impacts on state tax revenues as lawmakers grapple with a state budget crisis.
Republican Gov. Susana Martinez has indicated she will not approve isolated tax increases without the broader tax reforms.
Democratic House Speaker Brian Egolf says the tax reform bill will not be voted on during a special legislative session because it was presented too late. Many lawmakers want to set aside money for an independent study of the sales tax reforms in the coming months.
Lawmakers began a special session Wednesday and are grappling over how to end a budget crisis linked to a downtown in oil prices and a weak local economy.
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8:00 a.m.
New Mexico lawmakers are pressuring GOP Gov. Susana Martinez to restore funding to state universities and the Legislature as they look for new sources of revenue during a special legislative session.
Lawmakers were gathering Thursday for the second day of the session to consider bills that would increase tax income to help restore $765 million in funding that was vetoed by the governor.
The Democratic-led Legislature sent bills to the governor Wednesday that would reinstate a $6.1 billion state spending plan for the coming fiscal year, while bolstering state finances by suspending infrastructure projects and tapping severance bonds.
Lawmakers are outlining additional tax increases and plans for a new rainy day fund to protect the state’s credit rating.
Martinez has indicated a willingness to increase revenues by eliminating tax breaks.
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