New Mexico Governor Orders Agency Spending Reductions

SANTA FE, N.M. (AP) — New Mexico Gov. Susana Martinez is directing state agencies under her control to reduce annual general-fund spending by 5 percent in response to a decline in state revenues linked to energy prices. The Republican governor also told agencies on Tuesday to slow down expenditures during the first half of the fiscal year that began in July. Agencies were told to spend no more than 45 percent of general-fund budgets during those six months. Martinez expects the directives to involve changes to hiring practices, overtime, travel and many other aspects of agency management. Legislative leaders say New Mexico is confronting an estimated $150 million general-fund shortfall for the budget year that ended in June and potentially greater shortfalls this year.