Martinez Wants To Use State Money To Shore Up Unemployment Fund

New Mexico – A New Mexico business group is backing Republican Gov. Susana Martinez's proposal to shore up the finances of the state's unemployment compensation program but the plan faces trouble in the Legislature's special session.

If nothing is done, the unemployment fund will become insolvent in early 2013.

The governor wants to avoid higher taxes. To accomplish, she's asking lawmakers to replenish the unemployment fund with $130 million over two years $65 million from the state's cash reserves this year and $65 million next year out of new revenues expected in the state's general budget account.

The Greater Albuquerque Chamber of Commerce supports the governor's plan for no tax increase.

However, some legislators are leery of drawing down the reserves when the economy remains shaky.

Copyright 2011 The Associated Press.