Governor signs budget reductions

SANTA FE (KRQE) - Gov. Bill Richardson Friday said it pained him to signed legislation cutting program and project funding to fix the state's $454 million budget deficit.

Still by early Friday evening he had signed the last of the four-bill package to cut current-year spending, accelerate corporate income-tax collections and pull back money previously approved for big-ticket projects.

At an afternoon news conference Richardson thanked the legislative leaders for their hard work pushing the bills through as quickly as they did.

The Senate passed the final bill, House Bill 9, late Thursday.

HB9 cuts capital projects including $10 million for one of the governor's pet projects, an equestrian center at the state fairgrounds. All the capital projects on this list had been cancelled or not yet begun.

There is good news for education, though, which will see funding cut by only 1 percent instead of 2.5 percent. An extra $35.8 million came out of a rainy day fund that is specifically geared toward education reform.

Richardson also said he is confident President Obama's stimulus plan will keep the state from having to cut the school year by a day and increase class sizes.

“I believe the stimulus will help in the area of public education," Richardson said. "I believe that we can mitigate and minimize the number of public education cuts.

“In fact, I don't think we're going to need any more advocating for increased class sizes or for suspending the other school day.

The governor did veto one cut, $1 million that lawmakers voted to eliminate for domestic violence shelters.

Legislators still are working on next year's budget which kicks in on July 1. Current estimates project a revenue shortfall of $500 million.