SANTA FE, N.M. (AP) — New Mexico's Democrat-led Legislature and Republican Gov. Susana Martinez are preparing to announce spending priorities for state government and public schools.
The Legislature's lead budget-writing committee scheduled publication Friday of its spending proposal for the coming fiscal year that begins on July 1.
Surging state tax revenues and a rebound in the oil and natural gas sectors are propelling a rapid turnaround in New Mexico government finances after two years of austere budgets.
State government income for the fiscal year starting on July 1, 2018, is expected to surpass current annual spending by nearly $200 million. Much of the state's fiscal rebound comes from personal income taxes.
Last year, New Mexico plugged a budget hole with money from severance bonds amid a hiring freeze and agency spending cuts.