New Mexico governor signs spending, pay increases

Democratic New Mexico Gov. Michelle Lujan Grisham has authorized a nearly 12 percent increase in general fund spending for the coming fiscal year that includes across-the-board pay increases for teachers and state workers.

The governor on Thursday signed a $7 billion budget for the fiscal year that starts July 1 without major adjustments to the spending plan from the Democratic Legislature.

Spending on public schools alone will increase by $446 million to $3.2 billion. Substantial funding increases also are slated on economic development incentives and for child protective services, with enough money to fund 26 new positions.

Record-breaking oil and natural gas production in Southeast New Mexico has produced a windfall in state income.

The signed bill sets aside reserves equal to 20 percent of annual spending obligations.

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