Public schools could avert deep cuts in June session, top lawmaker says

New Mexico has enough from savings plus new money from Washington to help public schools weather looming budget shortages, says Sen. John Arthur Smith, D-Deming, a powerful lawmaker who helps to shape each year’s state budget. “It would be prudent to make some cuts but not deep cuts for the 21 budget,” Smith said Thursday morning of the public education portion of the spending plan for the fiscal year that begins July 1. 

On Wednesday during an online update on COVID-19, Gov. Michelle Lujan Grisham expressed a desire to keep spending on public schools intact during a special legislative session she has called for June 18 to tackle a budget hole projected between $1.8 billion and $2.4 billion for the state’s fiscal year that begins July 1. 

New Mexico Gov. Michelle Lujan Grisham gives an update on the COVID-19 outbreak in New Mexico and the State’s effort to limit the impact of the disease on residents. The news conference is being held at the State Capitol in Santa Fe, Wednesday May 20, 2020. (Eddie Moore/Albuquerque Journal)

On Thursday her spokesman, Tripp Stelnicki, reiterated his boss’ position: It’s “premature to talk about cuts. We’ll know when the special session gets closer.”

The significant hit to the state budget is due to a near shutdown of the economy to fight the COVID-19 pandemic, which led to a collapse in consumer spending and global demand for oil and gas, both of which feed New Mexico’s revenue base through wages and taxes. 

Smith based his opinion on multiple developments: the lion’s share of $120 million from the recently passed CARES Act in Washington that will go to the state’s 89 school districts and dozens of charter schools.