Public schools could escape significant cutbacks in financing if the Legislature accepts a budget proposal by the House Education Committee.

The panel on Wednesday recommended nearly $2.5 billion in state and federal aid for public education next year. That's an increase of about one-half of a percentage point over this year's spending on public schools, the Public Education Department and other educational programs.

Schools account for the largest share of the state budget, which faces a $600 million shortfall next year because of weak revenue. To balance the budget, lawmakers are considering spending cuts and tax increases.

Rep. Rick Miera, an Albuquerque Democrat and committee chairman, warned educators and his colleagues that the panel's budget recommendation depended on lawmakers raising taxes.

"If we don't get more money, there will have to be substantial cuts to this budget," Miera said shortly before the panel unanimously endorsed the spending bill.

The measure goes to the House Appropriations and Finance Committee, which could trim the education spending proposals as it develops a budget package for all government operations — from public schools to prisons and colleges.

New Mexico has been relying on federal economic stimulus money to avoid deeply cutting public schools so far during the recession. About $210 million in federal aid will go to schools this year, replacing state tax money that otherwise would be needed for education.

However, the federal money is going away.

Under the committee's proposal, schools would get about $24 million in federal stimulus aid next year. The panel recommended nearly $165 million in state aid to partly offset federal financing losses.

A legislative budget oversight committee has suggested a 2 percent salary cut for teachers and other educators to help reduce spending next year. However, that's not part of the Education Committee's proposed budget.

The committee did approve $20.5 million to help schools and their employees cover rising insurance costs. Without that money, school officials have said, workers could be hit with higher premiums, copays and deductibles on their insurance plans.

School administrators and educational groups expressed support for the committee's spending proposals.

"It's a good effort. These are tough times," said Stan Rounds, superintendent of Las Cruces Public Schools. The district is experiencing higher-than-expected student enrollment increases this year.

The education budget proposal is HB 3.




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