- Associated Press - Tuesday, January 31, 2017

SANTA FE, N.M. (AP) - The Latest on efforts to balance the New Mexico state budget (all times local):

4:20 p.m.

New Mexico Gov. Susana Martinez has vetoed portions of a budget solvency package that would have reduced funding for economic development incentives while preserving spending cuts that target school district reserves.

The line-item vetoes on Tuesday by the Republican governor keep in place most of a $216 million plan from the Democrat-led Legislature for plugging a budget deficit and rebuilding modest reserves.

New Mexico is grappling with a financial shortfall and plunging tax revenues linked to a downturn in the oil and natural gas sectors, a tepid local economy and a corresponding drop in state revenue.

The approved budget changes target $46 million in local school district reserves to beef up the state general fund, along with transfers from dozens of state accounts.

The governor also is allowing the state to tap tax payments by insurance companies immediately instead of waiting for the next fiscal year. That provision frees up at least $78 million, with some effects on the flow of money to volunteer fire departments and local law enforcement.

The governor vetoed efforts to sweep money from a state infrastructure bank and from a 911 emergency services fund.

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6:00 a.m.

Republican Gov. Susana Martinez has less than a day left to veto or allow passage of a budget solvency package approved last week by the Democratic-led Legislature.

The $216 million plan for plugging a budget deficit and rebuilding modest reserves goes into effect Tuesday afternoon if Martinez takes no action. She also has the authority to veto any and all provisions within the three budget-mending bills for the fiscal year ending June 30.

Spending across state agencies was slashed by 2.4 percent during a special legislative session in October, without fully addressing the deficit. The state’s credit rating was downgraded last year.

The new budget changes target $46 million in local school district reserves to beef up the state general fund, along with transfers from dozens of accounts.

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