SANTA FE, N.M. (AP) - New Mexico lawmakers sent a bill aiming to help solve the budget crisis to the governor Tuesday even as new disagreements emerged over how to fix the $80 million deficit and rebuild reserves.
A bill that would tap tax payments by insurance companies immediately instead of waiting for the next fiscal year won final approval in the state Senate.
The provisions would free up $88 million to shore up the general fund, with some effects on the flow of money to volunteer fire departments and local law enforcement. Republican Gov. Susana Martinez has three days to decide on the legislation once it reaches her desk.
The Democratic-led Legislature is attempting to plug a budget gap and restore depleted operating reserves. Lawmakers have outlined a package of four bills that would funnel about $260 million into the general fund, though details are being decided.
Negotiations on three of those bills were extended as the Senate and House reached a stalemate Tuesday on various amendments. A conference committee of lawmakers from both legislative chambers was scheduled to meet Wednesday to seek out a compromise.
One disputed bill would reduce funding to most public school districts by 2 percent. Another would sweep money from dozens of state accounts and shave spending on business incentives and specialized school programs.
School districts are expected to offset the 2 percent cuts with cash from reserves. The House added an exemption for schools with reserves below 4 percent of annual expenses. Leading budget negotiators in the Senate said that would be unfair to some districts and undercut intended savings of $50 million.
“We were talking about all schools have to share in the pain,” said Democratic Sen. John Arthur Smith, chairman of the Senate Finance Committee. “What this (House) amendment does is some schools don’t have to have to participate as much as others.”
In other budget developments, the Senate took initial steps to address anticipated funding shortfall in the state Judiciary.
The proposal would provide $1.1 million in emergency funding to stave off staff furloughs at the state Supreme Court, ensure compensation to jurors and court interpreters and restore full-time public access to services provided by court clerks in two judicial districts.
Money for courts was attached to a broader spending bill for the legislative session and other year-round functions of the Legislature that has yet to come to a full Senate vote. A House-approved bill would cut funding to the Legislature this fiscal year and next, while the Senate bill holds funding steady.
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