With crude prices plummeting Monday to a six-year low, state senators approved a $6.2 billion state budget with fingers crossed that the cost of oil will at least stay steady enough to preserve funding plans until the next fiscal year. Sen. John Arthur Smith, chair of the Senate Finance Committee, said steep drops in oil and natural gas prices meant a $35 million reduction in total revenue available for appropriations. “We’re moving ahead precariously,” said the Democrat from Deming, adding that “we’re hoping that this next year will be a better year, but we’re very concerned.”
The Senate’s budget for the most part closely tracks the House version. The Senate version has an added $12.9 million to result in a small 1.3 percent increase across all state government programs.
That $12.9 million was divvied up for additional investments for the public schools’ K-3 Plus interventions and increases for the Developmental Disability waiver and Family, Infant and Toddler Programs. It also includes a salary boost for nurses and allied professions and a restoration of funds cut in previous years for public broadcasting and higher education athletic programs.
The Senate also added $2.5 million in non-recurring spending to the state’s fund for the Local Economic Development Act. The cabinet-level Economic Development Department had requested $50 million for the program, which allows local governments to create public-private partnerships for economic development projects.