Summary of NM legislative action

Save about $253 million this year by reducing spending on public schools, colleges and general government operations ranging from courts to prisons.

• Schools face net cutbacks of less than 1 percent in the more than $2 billion in state aid that's distributed to education through a funding formula. Lawmakers softened the blow to schools by using $45 million in federal stimulus money to replace state aid. In addition, $29 million from a school capital improvement fund will pay for property insurance costs that districts otherwise would have financed with general state aid. The legislation calls for school cuts ranging from 4 percent to 6.5 percent, but the net reductions are less because of the revenue offsets. Smaller school districts can request financial help from a $3 million emergency fund if cutbacks create difficulties for them.

• Cuts will vary by agency. Those under control of the governor will be cut 7.6 percent, although state police will be trimmed no more than 2 percent. The courts, attorney general, district attorneys and public defender are cut 2 percent. Elected officials other than the governor, such as treasurer and secretary of state, will have to cut their budgets by 4 percent.

• State money for Medicaid is cut $16 million, but that is offset by additional federal money and revenue the state receives from a national settlement with tobacco companies.

• There are 2 percent net cuts in state aid for colleges and universities to cover instructional and student services, administrative and maintenance expenses. About $13 million in federal stimulus money offsets cutbacks. Other higher education spending, including for research and athletics, is trimmed 6.5 percent.

• The governor must eliminate 102 political appointees in his administration. The impact is lessened because of vacancies. About 60 appointive jobs are vacant throughout executive branch agencies.

Federal money

• $20 million in federal economic stimulus money is allocated to the state's main budget account to pay for governmental expenses. It serves as a one-time boost in revenues. The money is from a pool of stimulus aid that went to the governor to use at his discretion.

Fund transfers

• $115 million is taken from cash balances of programs and agencies and slightly more than $1 million previously allocated for computer projects is pulled back. Of the total, about $68 million is removed from the College Affordability Fund, which provides student scholarships.

Capital outlay

• $136 million is freed up with a financing swap for more than 200 capital improvement projects. Severance tax bond proceeds will replace general state tax revenues used previously. No projects were canceled.

School flexibility

• Some school districts are allowed to temporarily use a portion of local property tax levy money for operational expenses, except worker salaries. That money has been restricted to capital improvements such as equipment and maintenance and remodeling of buildings. Any money that is borrowed for operating expenses must be repaid...read more