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Strong New Mexico Revenue Forecast Can Cover Increased Pension Costs

The Legislature and Gov. Susana Martinez will have slightly more than $280 million to cover budget increases and tax cuts next year under a new revenue forecast outlined to lawmakers.  The revenue estimates released Monday will serve as the financial backdrop for lawmakers when they convene next month for a 60-day legislative session.

Administration and legislative economists say the state should collect about $5.9 billion in tax revenues in the fiscal year that starts July 1, 2013. That provides a pool of so-called new revenues of about $283 million. That's enough for about a 5 percent increase in spending.

Lawmakers say part of that money will be needed to cover previously approved changes in law, including about $36 million for higher state contributions to public employee pensions next year.

Copyright 2012 The Associated Press.