SANTA FE, N.M. (AP) — The state Senate opened deliberations Friday on provisions of a $7.45 billion budget plan that would shore up educational funding and provide an array of relief to low-income workers and businesses.
Recent amendments to the spending plan for the fiscal year starting July 1 would tap newly approved federal pandemic aid to pay down the state's unemployment insurance debts and funnel more dollars toward health care for the poor under Medicaid.
Full Senate approval sends recent amendments to the House for approval or a negotiated settlement by conference committee. The Legislature has until noon Saturday to send the bill to Democratic Gov. Michelle Lujan Grisham, who can veto any and all budget appropriations.
The Senate proposal would increase general fund spending by 4.8% over current annual spending obligations, a $373 million boost. State spending on public education would increase by 5.8% to $3.35 billion.
The amended bill would provide a 1.5% pay increase for state agency and K-12 school employees, along with increased taxpayer spending toward public school pension plans.
State employees are making last-minute push for higher salaries and a $15 minimum wage.
State reserves would hold steady about $1.8 billion — or nearly 24% of current annual spending commitments.
The state used $1 billion in reserves to prop up general fund spending during the current fiscal year. State income forecasts have rebounded on surging oil production and market prices for petroleum.
New Mexico state government expects to receive $1.63 billion directly from the landmark $1.9 trillion COVID-19 relief bill approved by congressional Democrats and President Joe Biden. The budget proposal would put $600 million into the state unemployment trust to stave off future payroll tax increases on businesses.
Proposed Senate budget amendments would boost student financial aid programs, including the governor’s signature tuition-free college program for in-state students, by $21.5 million.