New Mexico House and Senate diverge on solvency plan

SANTA FE, N.M. (AP) — New Mexico lawmakers are sending a budget solvency bill to the governor even as new disagreements have emerged over how to fix a state budget deficit and rebuild reserves. The Senate gave final approval Tuesday to a bill that would tap tax payments by insurance companies immediately instead of waiting for the next fiscal year. That would free up $88 million to shore up the state general fund. The Legislature is attempting to plug an $80 million current-year deficit and create a modest financial cushion. Negotiations over three other solvency bills were extended Tuesday after the Senate rejected House amendments. A proposal to reduce public school district funding by 2 percent was sent to conference committee to decide whether schools with low reserves will be exempt.