SANTA FE, N.M. (AP) - The Latest on efforts to resolve New Mexico’s state budget crisis (all times local):
1:40 p.m.
The New Mexico Legislature has concluded a special session after Gov. Susana Martinez signed legislation that resolves a state budget crisis for the coming fiscal year.
The Legislature adjourned on Tuesday as Democratic lawmakers expressed lingering concerns about the health of state finances.
Martinez restored funding Friday to all state colleges and universities that she had vetoed earlier by tapping money from suspended infrastructure projects.
The Republican governor has rejected a string of tax increases proposed by the Democratic-led Legislature that were designed to further bolster state finances and protect the state’s credit rating.
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12:10 p.m.
State budget analysts say legislation signed by New Mexico Gov. Susana Martinez is likely to provide state government with a small financial cushion during the coming fiscal year.
The Legislative Finance Committee on Tuesday estimated that state government will finish the coming fiscal year with $24 million in reserves.
Those savings are equal to about 0.4 percent of what the state regularly spends in a year. New Mexico held reserves in excess of $700 million two years ago before a downturn in tax revenue linked to weak oil and natural gas prices.
Martinez signed legislation Friday that shores up state finances using money from suspended infrastructure projects. She vetoed several tax increases that most state lawmakers say are needed to reliably fund state government and protect the state’s credit rating.
Vetoed funding is being restored to all state colleges and universities under the budget compromise between the Republican governor and Democratic-led Legislature.
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3:00 a.m.
New Mexico financial analysts say legislation approved by Gov. Susana Martinez last week will provide state government with an additional $83 million - just enough to avoid a deficit in the coming fiscal year.
Credit rating agencies on Tuesday were combing through revisions to New Mexico’s financial plan for the fiscal year starting July 1. The state’s Republican governor reached a budget compromise Friday with the Democratic-led Legislature.
Martinez also vetoed a series of tax increases approved by the Legislature in a special session that reconvenes on Tuesday afternoon.
The governor has agreed to tap bond funds from suspended infrastructure projects to close a budget shortfall last estimated at $70 million. The Legislative Finance Committee says that plan will provide the state general fund with an additional $83 million.
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