Cash-Strapped New Mexico Takes Back Construction Funds

SANTA FE, N.M. (AP) — New Mexico Gov. Susana Martinez has signed a budget solvency bill that would shore up the state general fund with money from stalled construction projects. The Republican governor signed a measure Friday that would shift almost $90 million to state operating reserves mostly from projects authorized in 2013 and 2014 that never broke ground. Some projects would be reauthorized with borrowings from severance tax bonds. Lawmakers approved a solvency package this month during a special session to help address a nearly $600 million operating budget deficit. Martinez reinstated funding for four capital projects targeted by the Legislature because they involved private or federal matching money, or commitments already were made. Nearly 120 projects were listed for suspension. State economists expect the impact on employment and the economy to be minimal.