February 13, 2016
Contact: Arnold Vigil
(505) 986-4263
Arnold.Vigil@nmlegis.gov
FOR IMMEDIATE RELEASE
Despite Projected Budget Shortfall Senate Finance Committee Balances Budget
The Senate Finance Committee (SFC) on Friday passed an amendment to House Bill 2 (HB 2) that includes minor to modest budget increases for corrections and law enforcement, the Children Youth and Families Department, and public schools, including salary increases for Level II and III teachers.
However, the adjusted budget will include about a 2 percent decrease to the budgets of all other state departments and agencies. Senators worked to sweep unused balances from throughout state government budgets to cover a projected budget shortfall that was sometimes estimated to be as high as $800 million. The Senate’s amended budget was able to accomplish this while reducing the House of Representatives’ proposal by $88 million.
“I am happy that we were able to take care of the some of the most vital departments in state government, especially by providing $2,000 annual salary increases to Level II and III teachers,” said SFC member Senator Howie Morales (D-28, Catron, Grant, & Socorro). “Educators are the backbone of our future and it is especially important for us as legislators to remind them that we appreciate their importance and reward them for it. The same can be said for our corrections and law enforcement officers, and our social workers who must help our youngest at-risk New Mexicans.”
The budget amendment is based on current projected revenues and will have to be adjusted further if revenues continue to fall, which has been the trend of late. It will also draw down the reserves fund by nearly in half to about 5.6 percent.
“Given the circumstances of the current downturn of the economy in our state, it is especially gratifying to me that our Senate Finance experts were able to find a little extra money for our teachers,” said Senator Mimi Stewart (D-17, Bernalillo). “Our teachers have had a rough go of it for the past few years and I feel we, as lawmakers, must address their continual lack of salary increases, which is contributing to our teacher shortage.”
The SFC amendment totals about $6.228 billion, down from the $6.235 billion budget passed last year. It also reflects a $20 million increase to Medicaid funding, which is matched at 3-to-1 by the federal government. CYFD will receive an extra $5 million for child-protection services, including the hiring of more social workers. In addition, the amendment calls for a $19 million decrease to the higher education budgets throughout the state.
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