DALLAS – With revenues falling due to a collapsed energy market, New Mexico legislators settled on a $6.2 billion budget that cuts some agency funding but keeps overall spending flat.
The general fund reserve balance of $713 million on June 30, 2015 represented 11.6% of the budget, but that is expected to fall to $340 million or 5.4% by the end of this fiscal year on June 30.
The approved budget sweeps money from the unspent funds and transfers all of the money from a Tax Stabilization account into more liquid operating reserves. It also shifts funds from a tobacco settlement fund into the state Medicaid program.
Martinez can take more money from reserves, including the state Economic Development Department to promote business expansion.
The Legislature approved $166 million for bond-funded building and renovation projects across the state.
Projects included $1.1 million for a fire station at the Santa Teresa airport and $1.5 million to administer projects supplying surface and river water around the state.
The state will spend $2.75 billion for public education in the next fiscal year, an increase of about $7 million.
Medicaid funding would reach $928 million, but that would not be enough to support current services for the 800,000 patients in the program, according to state officials. To make up the difference, the state is expected to cut reimbursement rates to hospitals, doctors and social workers, as well as increase copays for those patients in the government insurance program.
