Pandemic looms over New Mexico Legislature, state finances

SANTA FE, N.M. (AP) — Legislators are gathering to shore up New Mexico state finances for the first time since the coronavirus pandemic struck.

The Democrat-led Legislature is scheduled to start a special legislative session on Thursday at noon in a Statehouse that is closed to the public. People can follow deliberations over the internet or telephone.

Lawmakers are confronting a 25% decline in estimated state government income for the coming budget year. Solvency proposals from a leading lawmaker and the governor would diminish but not do away with increased spending on public salaries, education and heath care.

First-term Democratic Gov. Michelle Lujan Grisham also wants legislators to enact policing reforms such as mandating body cameras and streamlining mail-in balloting procedures ahead of November elections. She is hoping for legislation that extends a lifeline to local governments and small business by providing low-interest loans from a state trust fund.

House Republican legislators are arguing for a more cautious approach to state spending and warning that sustained spending increases now will eventually require tax increases as financial reserves dry up.