New Mexico aims for 5% reduction in annual state spending

New Mexico

A maintenance worker power-washes the state seal at an entrance of the capitol building on Monday, Aug. 24, 2020, in Santa Fe, New Mexico. The building has been closed to the public since the onset of the coronavirus pandemic. Legislative meetings and gubernatorial addresses are broadcast online. (AP Photo/Cedar Attanasio)

SANTA FE, N.M. (AP) — The administration of New Mexico Gov. Michelle Lujan Grisham is directing executive agencies to reduce annual spending by 5% to help ease an anticipated budget deficit for the coming fiscal year.

Agency budget proposal are due Tuesday in an annual rite that provides time for legislators to craft a balanced budget before they reconvene in January.

A memo to state agencies obtained by The Associated Press calls for a 5% reduction in general fund levels for the fiscal year starting on July 1, 2021, compared with current-year spending.

That is in line with recommendation from the Legislature’s budget and accountability office. 

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