House Committee Passes Budget Based On Tax Increases

New Mexico – A House committee has approved a $5.6 billion state budget that requires tax increases and extra federal aid to balance the spending plan for next year.

The measure goes to the full House for consideration later this week.

The proposed spending is about 1 percent below this year's levels.

The budget relies on about $200 million in extra federal aid next year, some of which has yet to be approved by Congress. The budget also assumes lawmakers will plug a hole with $300 million in state revenues from tax increases.

Public schools are the largest part of the budget and would receive almost $2.5 billion. That's about 1 percent below current spending.

The Appropriations and Finance Committee endorsed the budget Tuesday.

Copyright 2010 The Associated Press.