SANTA FE, N.M. (KRQE) – The state now has a balanced budget.
The Republican governor approved legislation to reinstate roughly $745 million in spending on universities, hospitals and the legislature to the budget that starts July 1.
She did veto for a second time several tax increases, which Democratic lawmakers say are needed to shore up state finances.
The governor says that’s because she’s optimistic revenue from oil and gas will help replenish reserves.
“We have had some good, positive revenue forecasts in the last couple months, and revenues are coming in. We are not going to bank on it that that’s the way it’s going to be for the rest of the year, but we are going to keep an eye on that,” Gov. Martinez said.
Democrats say the governor’s decision to fund government with borrowed money is fiscally irresponsible. They say by vetoing all the recurring revenue, the governor has threatened the state’s bond rating, and put classrooms and critical state services at risk.