House Passes Budget 70-0

SANTA FE, NM – The House of Representatives has passed a budget for the next spending year that begins July 2012. HB2 would provide $5.642 billion in state spending, an increase of $215 million (nearly 4 percent) over this year’s budget. The spending plan leaves $41.8 million to allow for flexibility in hammering out a final budget (such as tax reductions, pension solvency, infrastructure funding, or as a hedge against weak natural gas prices).

HB2 also puts a safe guard in place should revenue projections fall short. This provision allows the governor to make across-the-board spending cuts to adjust the budget. The automatic spending reductions would apply to most state agencies except Medicaid programs; the developmental disabilities support program; the law enforcement program of the department of public safety; the inmate management and control program of the Corrections Department and any agency that receives less than $5 million total in general fund appropriations under Section 4.
The bulk of the budget in HB2 would go toward public education and higher education, then health, hospitals, and human services.
· $2.45 billion for Public Education (increase of $89 million or 3.8 percent)
· $756.1 million for Higher Education (increase of $40 million or 5.5 percent)
· $905 million for Medicaid (increase of $38 million or 4.4 percent)
· $291 million for Dept. of Health (increase of $2.5 million)
· $207 million for Children, Youth and Families Dept. (increase of $12 million or 6.1 percent)
Chair of the House Appropriations and Finance Committee (HAFC), Rep. Henry “Kiki” Saavedra (D-Bernalillo, Valencia, Dist. 10) said, “We work real hard –Democrats and Republicans – to come up with a budget that’s balanced. This was a joint effort to do what is best for all New Mexicans.”

HB2 passed by a vote of 70 to 0. The budget plan now goes to the Senate.

House Passes Budget 70-0