New Mexico Struggles to Balance Budget
POSTED: Tuesday, March 2, 2010 - 6:23am
UPDATED: Tuesday, March 2, 2010 - 7:06am
Santa Fe, NM - (AP) - The Legislature is back at work with a politically difficult assignment of raising taxes and cutting
spending to balance the state budget next year.
A House committee approved a $5.6 billion budget bill on Monday. It will reduce spending by nearly 2 percent from amounts provided for government operations in the current fiscal year.
A proposal to raise the tax on cigarettes by 75 cents a pack stalled in a House committee, illustrating the problems confronting Democratic leaders in lining up enough votes for a budget-balancing package.
Democratic leaders negotiated a financial package with more than $200 million in tax increases, including a quarter-cent increase in the gross receipts tax.
The budget bill heads to the House for consideration.