State estimates $254 million surplus
Lawmakers and the governor will have $254 million available for spending increases or tax cuts when the Legislature meets to craft a budget in January, the Associated Press is reporting.
From today’s AP article:
“Despite a sluggish economic recovery, the Legislature will start work in January for the first time since 2008 without a looming budget shortfall or the need to slash spending to avoid a deficit.
“…The state will have about $254 million in ‘new money’ next year to allocate for programs, restore recent budget cuts or cover the cost of tax cuts, which the Martinez administration has said it’s considering to help businesses and to boost the economy.”
There is a complication:
“However, about $50 million of that will be needed to pay for expected changes in public employee pensions next year and part of the additional revenues likely will go to cover anticipated growth in Medicaid, which pays for health care for the poor and uninsured children.”
Read the full article here.