Budget shortfall intact after session

SANTA FE (KRQE) – Gov. Bill Richardson said Thursday he will call lawmakers back for a special session next Wednesday to fix a budget shortfall that could reach $600 million.

As News 13 reported Wednesday night, a framework for a possible compromise was in place, but 30 days wasn't enough time to reach on consensus on how to balance the budget.

"The House moved in terms of some of the spending cuts, the Senate moved in the area of the gross receipts tax," Richardson said. "I think both sides were moving towards a compromise, we just ran out of time."

The regular legislative session came to an end at Thursday at noon without a budget fix.

The main gridlock concerned the fact that House Democrats firmly believed they cut enough from state government and Senators were just as resolute about not raising taxes.

Without any changes to the budget, the state would spend $600 million more than it has for 2011.

"To the public I would say I'm sorry. We worked as hard as we could to get it done," Sen. Michael Sanchez, D-Belen, said.

"Hopefully we can come back and do what we should have done in 30 days. I would like the public to give us some kind of response and give us some kind of an indication as to what they want us to do," Rep. Lucky Varela, D-Santa Fe, said.

The 30-day session cost the state $5 million. Now, a special session will cost $50,000 a day.