New Mexico – A Senate committee has approved a state budget proposal that's based on $150 million in new revenues from tax measures and larger spending cuts for education and governmental services.
The Finance Committee endorsed the budget on Thursday and sent it to the Senate for consideration.
The budget proposes spending $5.5 billion next year. That includes some federal aid for Medicaid and education.
The committee cut spending about $150 million from what was in a House-passed budget.
Those savings include a proposal that will reduce take-home pay for public employees by requiring them to contribute more into pension funds while reducing the government's share. Separate legislation is needed to implement the pension change. It will save the state about $44 million.
Copyright 2010 The Associated Press.