Tuesday, January 5, 2010

Richardson's budget cuts state government by three percent


Gov. Bill Richardson's just-announced spending plan for FY 2011 would cut spending by $510 million, achieved in part by making the $218 million in spending cuts approved in the recent special session permanent.

In addition, the proposal would:


-- make "the equivalent of three percent spending cuts across state government, with all options on the table to achieve those cuts." That would save $158 million, the Governor's Office said.

-- eliminate $150 million in stalled capital outlay projects.

-- prohibit double dipping, which the Governor's Office said would save $4 million.

-- adopt recommendations of the Committee on Government Efficiency created by Richardson, to save $25 million. 

-- eliminate exempt employees, to save $8 million.



At the same time, the Governor's Office said Richardson "is prepared to negotiate with the Legislature to generate $200 million in temporary new revenue as a critical piece to balancing the budget."

Still no word on what those increases might entail.

Also today, Richardson laid out the tax increases he will oppose. They include increases in personal income and capital gains taxes. He also will reject moves to decrease business tax incentives or credits, his office said.

Check out details of the proposal here.

Richardson's spending plan comes one day after the Legislative Finance Committee on Monday announced its budget proposal.

1 comment:

  1. Notice there's no discussion of rolling back the tax cuts enacted by the Legislature in '03. It's understandable, because all lawmakers are up for re-election this year and the Demos would be accused of "raising taxes."
    But the tax cuts primarily aided the already wealthy...and notice that the cuts didn't deliver what they promised: economic growth. I suppose us working folks in the public sector will have to eat it for another year and hope the next Governor doesn't have a "national" agenda!

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