SANTA FE (AP) —Gov. Susana Martinez directed most major state agencies on Tuesday to institute spending cuts in response to a sharp downturn in tax receipts and other state revenues tied to weak energy prices.
In a memo to state agencies under her control, the Republican governor called for preparations to reduce general-fund spending by at least 5 percent during the budget year that began in July. Executive agencies also were directed to spend no more than 45 percent of their general-fund budgets during the first half of the current fiscal year.
Martinez said she expects the directives to involve changes to hiring practices, overtime, travel and many other aspects of agency management. Some exceptions may be made to preserve public health and safety.
Martinez recommended identical spending reductions at agencies outside her direct control that are overseen by the Legislature, judiciary or other elected officials. She attributed faltering state revenues to a downturn in the energy sector, describing "the largest crash in oil and gas prices in our lifetime."