The Latest: Governor says solvency plan ‘not perfect’

SANTA FE, N.M. (AP) - The Latest on efforts to fix New Mexico’s budget deficit (all times local):

9:20 p.m.

Republican New Mexico Gov. Susana Martinez says through a spokesman that a budget solvency package approved by the state’s Democrat-led Legislature is close to what she envisioned in discussions with lawmakers but “not perfect.”

Solvency bills approved by the Legislature on Wednesday would plug a deficit and shore up the state’s general fund by targeting school district reserves and transferring money from dozens of state accounts. The bills also would trim spending on programs for economic development and school initiatives that the governor has pledged to support.

Martinez spokesman Michael Lonergan says that lawmakers chose to protect their personal legislative retirement accounts while trying to squeeze money out of other areas of government. He says the governor is going to take a closer look at the proposed legislation in the coming days.

Martinez has three days to consider the bills from the time they reach her office.

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5:10 p.m.

The New Mexico Legislature has approved a package of budget solvency bills that would fill a current-year deficit and restore depleted reserves, as state government wrestles with plunging tax revenues.

The House and Senate on Wednesday approved a $216 million solvency package that would rebuild state reserves to 2.3 percent of annual spending.

Newly approved bills target $46 million in local school district reserves to shore up the state general fund, and transfer of $81 million from dozens of state accounts and select programs. Republican Gov. Susana Martinez has three days to consider the bills once they reach her desk.

Members of a conference committee brokered a compromise on several controversial provisions. School districts that have reserve balances under 3 percent of annual program spending are exempt from cuts.

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1 p.m.

New Mexico lawmakers have outlined a compromise on solvency legislation designed to fix a state budget deficit and restore reserves.

A conference committee of House and Senate lawmakers on Wednesday signed off on solvency measures that would target $46 million in local school district reserves to shore up the state general fund. A vote on the provisions was pending in the House and Senate.

Other compromises would reduce funding by $7.6 million to a closing fund to support businesses that expand in New Mexico, a smaller cut than initially proposed.

An amended package of budget solvency bills would fill an $80 million shortfall for the current fiscal year ending June 30 and boost reserves to 2.3 percent of annual spending.