Reluctant lawmakers set sights on fix for New Mexico budget

SANTA FE, N.M. (AP) – New Mexico state lawmakers are reluctantly returning to the budget negotiation table with Republican Gov. Susana Martinez as time runs short to restore billions of dollars in vetoed spending for the fiscal year beginning July 1.

The state Supreme Court has refused a request by lawmakers to rescind the governor’s vetoes of all funding for the legislative branch and state institutions of higher education.

A special legislative session is set for May 24, with pressure mounting Friday on elected officials to shore up anemic state tax revenues or agree to a new round of spending cuts at state agencies or public schools.

What lies ahead is unclear, as legislators consider competing proposals to clear away tax breaks and hike taxes on everything from groceries to online retail sales.