SANTA FE, N.M. (AP) – New Mexico Gov. Susana Martinez has vetoed portions of a budget solvency package that would have reduced funding for economic development incentives while preserving spending cuts that target school district reserves.
The line-item vetoes on Tuesday by the Republican governor keep in place most of a $216 million plan from the Democrat-led Legislature for plugging a budget deficit and rebuilding modest reserves.
New Mexico is grappling with a financial shortfall and plunging tax revenues linked to a downturn in the oil and natural gas sectors, a tepid local economy and a corresponding drop in state revenue.
The approved budget changes target $46 million in local school district reserves to beef up the state general fund, along with transfers from dozens of state accounts.
The governor also is allowing the state to tap tax payments by insurance companies immediately instead of waiting for the next fiscal year. That provision frees up at least $78 million, with some effects on the flow of money to volunteer fire departments and local law enforcement.
The governor vetoed efforts to sweep money from a state infrastructure bank and from a 911 emergency services fund.