SANTA FE, N.M. (AP) — A plunge in world oil prices is threatening to reverse state budge surpluses that have allowed New Mexico to make major new investments.

The upheaval Monday could affect the plans to shore up government salaries, public school education, health care and business incentives.

The state government relies on the oil sector for more than a third of its annual general fund income.

Gov. Michelle Lujan Grisham has until Wednesday to decide on an 8% annual spending increase proposed by lawmakers.

The Senate’s Finance Committee chairman says a buildup in financial reserves gives the state time to maneuver if oil prices don’t recover quickly.