A proposed $5.6 billion state budget hit a last-minute snag in a House committee Monday after Republicans objected that several of the GOP governor's initiatives might get chopped if the state's revenue outlook dims. 

The Appropriations and Finance Committee postponed a final vote on the budget, and the chairman, Rep. Henry Kiki Saavedra, D-Albuquerque, said he was surprised by the GOP complaints because members of the panel had tentatively agreed last week on provisions of the spending plan. 

The budget proposal calls for a spending increase of nearly $216 million, or about 4 percent, in the fiscal year that starts July 1. 

However, the plan leaves about $41 million available for possible tax cuts -- a high priority for the governor -- or additional budget increases. 

Economic growth is expected to generate about $257 million in new revenues next year that lawmakers can use for the budget or to cover the cost of tax reductions. 

The governor has proposed $55 million in tax cuts for businesses and veterans. Democratic and GOP lawmakers also have introduced a wide range of tax-relief bills. Decisions on tax cuts are expected later in the legislative session, when lawmakers reach agreement on how much to spend in the state budget. 

The budget still faces a long journey in the Legislature. Besides needing House approval, the budget must clear the Senate, and senators probably will make changes to the spending plan before lawmakers agree on a final version that goes to the governor. 

Of the proposed $216 million budget increase, about $14 million will be distributed to programs only if state revenue projections remain on target. The contingency was added because some lawmakers worry that revenues could end up falling short in the next year because of low natural-gas prices. 

About $6 million of the $14 million is earmarked for the governor's educational initiatives, including more frequent testing of public-school students and help for struggling schools. About $5 million is for higher reimbursement rates for health care providers serving the needy in the Medicaid program, $1.6 million is to offer subsidized child care to more low-income families, and $1.6 million is for recruitment of state police.





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