A new financial report forecasts that $296 million in revenue will be available next year in New Mexico, potentially allowing a 5 percent spending increase on public education and other government programs.
The latest revenue projections were released Wednesday to the Legislative Finance Committee, which was meeting in Chama.
Martinez administration officials said in written testimony that New Mexico should collect nearly $6.2 billion in the fiscal year starting in July 2014. That's $296 million higher than spending in the current budget.
However, Finance and Administration Secretary Tom Clifford said in an interview that some of the new money should be saved and used to rebuild the state's cash reserves, which will drop because this year's revenues are forecast to be $73 million lower than what was previously expected.
Copyright 2013 The Associated Press.