For immediate releaseContact: Gilbert Gallegos Nov. 12, 2009(505) 476-2217

Governor Bill Richardson Acts on Budget Bills;Signs Executive Order Mandating ResponsibleSpending Cuts

Governor Sets 5 Mandatory Furlough Days

SANTA FE – Governor Bill Richardson took a number of aggressive steps today to help balance the state budget. TheGovernor signed legislation, while vetoing irresponsible budgetcuts that would have cut critical health services, closed prisons and jeopardized protection for kids. After taking final action on the special-session legislation,Governor Richardson signed an Executive Order that sets fivefurlough days for state employees and further cuts state agency budgets by an average of 7 percent for the budget year. The Governor’s budget action, combined with his efforts to save$150 million by freezing capital outlay projects, will put the stateon a responsible path toward balancing the current-year budget. “Since the session ended, I have heard from hundreds to NewMexicans, including many legislators – who want me to exercisemy veto pen to preserve those services,” Governor Richardsonsaid. “I understand and share their concerns, particularly in light of the previous budget cuts. “However, it would be fiscally irresponsible to simply veto this bill

and wait for the Legislature to meet again in January – more thanhalf-way through the fiscal year. “Instead, I am signing anExecutive Order today that directs more responsible budget cutsacross state government.” Governor Richardson took the following action on legislation:

SIGNED

HB 6 Transfer Reserves to General FundHB 16 Reduce Legislative AppropriationsSB 24 School District Flexibility and Insurance

SIGNED WITH LINE ITEM VETOES

HB 17 Reduce General Fund AppropriationsSB 29 STB Auth. for Capital Projects

Pocket Veto

SB 25 School District Cash Balance Transfers Governor Richardson’s Executive Order spells out his plan for state agencies:

EXECUTIVE ORDER 2009-044 ORDER CONCERNING FISCAL YEAR 2010 BUDGETGAP; REQUIRING STATE AGENCIES TO REDUCEFISCAL YEAR 2010 OPERATING EXPENDITURES;REQUIRING THE FURLOUGH OF STATE EMPLOYEES;DIRECTING THE PUBLIC EDUCATION DEPARTMENTAND HIGHER EDUCATION DEPARTMENT TO TAKESTEPS NECESSARY TO RESTORE FURTHER CUTS TOPUBLIC AND HIGHER EDUCATIONWHEREAS

, Governor Richardson called the Legislatureinto special session in order to address the State’s fiscal year 2010 budget shortfall;

WHEREAS

, even if fully implemented, the so-calledsolvency bills passed during the First Special Session of the Forty- Ninth Legislature were insufficient to bridge the budget gap;

WHEREAS

, among other shortcomings, the solvency billsfailed to cut capital appropriations or effectively use supplementalseverance tax bonding capacity;

WHEREAS

, Section 2(A)(4) of the House Appropriationsand Finance Committee Substitute for House Bills 17 and 33 (“HB17/33”), as amended, sought to impose deep, aggregate cuts of 7.6% to the already reduced operating budgets of State agenciesunder the control of the Governor;

WHEREAS

, implementing such cuts would likely havecaused dangerous and unacceptable harm to core services;

WHEREAS

, the Administration concluded that the cutscalled for in Section 2(A)(4) would likely have (i) severelycompromised the ability of the Children, Youth, and FamiliesDepartment to investigate child neglect and abuse cases and takekids into protective custody, putting kids at risk and jeopardizingfederal funding to the State; (ii) forced the Department of Health totemporarily close some public health offices and reduce services atschool-based and rural primary care clinics, which provide servicesto citizens with few (if any) other treatment options; and(iii) resulted in the closure of two adult correctional facilities,resulting in hundreds of prisoners being released early withinadequate supervision and employees being put out of work;

WHEREAS

, to avoid such unacceptable results, theGovernor this day vetoed Section 2(A)(4) of HB 17/33;

WHEREAS

, the Richardson Administration recognizes theneed to responsibly and meaningfully reduce agency expendituresas part of a package of solvency measures that completes the jobstarted in the First Special Session of the Forty-Ninth Legislature;

WHEREAS

, the expenditure restrictions imposed in thisExecutive Order will result in savings that will, along with other measures to be proposed by the Richardson Administration duringfuture legislative sessions, bridge the budget gap while maintainingadequate levels of services and a prudent level of budget reserves;