New Mexico Gov. Susana Martinez is signing a state budget that trims overall state spending while bolstering Medicaid health care and increasing pay for prison guards, State Police and some veteran teachers.
The Republican governor announced on Monday her endorsement of the $6.2 billion budget as she met with business leaders at a hotel in Albuquerque.
New Mexico is drawing down its general fund reserves and pinching pennies to pay for day-to-day government operations because of plunging revenues linked to oil and natural gas production, as well as weaker-than-expected sales and income tax receipts.
Lawmakers avoided tax increases by scouring agency accounts for one-time funding. Critics of the spending plan worry it could make matters worse next year if energy prices remain low.