New Mexico – A legislative committee is proposing a $5.4 billion budget that will cut state spending by an average of more than 3 percent next year.
The Legislative Finance Committee released spending recommendations Friday that provide for balancing next year's state budget without a tax increase.
The committee's plan will serve as a budget debate starting point for the Legislature when it convenes on Jan. 18.
The committee calls for the government to reduce payments into public pensions by nearly $50 million. Government employees would make that up by contributing an extra 1.75 percent of their salaries. That means a drop in take-home pay averaging about 1.4 percent for a single worker earning about $41,000 a year.
Copyright 2011 The Associated Press.