Smith: Governor could use federal aid to ease cuts

Posted at: 10/29/2009 1:11 PM | Updated at: 10/29/2009 2:18 PM
By: BARRY MASSEY, Associated Press Writer

SANTA FE, N.M. (AP) - A legislative budget leader says Gov. Bill Richardson has flexibility to implement budget cuts ordered by the Legislature and could use federal stimulus money to soften the blow to agencies and programs.

The administration has said budget cuts could cause drastic reductions in health care and social services and may lead to the early release of prison inmates.

A deficit reduction measure approved by the Legislature calls for 7.6 percent spending cuts by agencies under control of the governor.

Richardson has until early next month to sign or veto the budget bill.

The chairman of the Senate Finance Committee, Sen. John Arthur Smith, says the governor has a pool of federal stimulus money that could help offset budget cuts for his agencies.

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

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