NM lawmakers propose $650 million deficit plans

Posted at: 10/09/2009 12:06 PM | Updated at: 10/09/2009 10:22 PM
By: BARRY MASSEY, Associated Press Writer

SANTA FE, N.M. (AP) - Lawmakers are proposing three options for wiping out a deficit expected to reach at least $650 million this year.

One proposal submitted to Gov. Bill Richardson's administration calls for 3.5 percent across-the-board budget cuts and 2.5 percent salary cuts for government workers and educators.

Another proposal excludes public schools and Medicaid from cuts, but the rest of government would face budget reductions of 16 percent. Richardson has said he wants to protect schools from cutbacks.

A third option proposes cuts of 4.7 percent for agencies, schools and higher education. Lawmakers are trying to negotiate a deficit reduction plan with the governor. The Legislature meets in a special session starting Oct. 17 to deal with the deficit.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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