SANTA FE — No state workers will be furloughed or laid off because of a new round of spending cuts to balance New Mexico's budget, Gov. Bill Richardson said Wednesday.

The governor will provide $1.4 million in federal economic stimulus money to several executive branch agencies and the courts to prevent furloughs that otherwise would have been necessary because of cutbacks that began on Wednesday. That move also will avert the closing of some courts.

Budgets are being trimmed by 3.2 percent to close a $151 million shortfall in New Mexico's more than $5 billion budget this year. The cuts were ordered because state revenues are lower-than-expected because of the poor economy.

The governor said $925,000 in federal aid will go to executive branch agencies to protect workers and $450,000 is for courts, including magistrate courts across the state, district courts in Bernalillo, Curry and San Juan counties and the Bernalillo County Metropolitan Court.

The courts would have been forced to close to carry out worker furloughs, according to Supreme Court Chief Justice Charles Daniels. With the federal money provided by the governor, he said, no closures will be necessary through the remainder of the calendar year until the Legislature meets in January to consider the budget problems facing the courts and other agencies.

"It is a fundamental reality that no self-governing democracy can survive without the rule of law. But it is equally true that the rule of law is a hollow promise if the courts cannot remain open to administer justice," Daniels said in a statement.

Without the federal money, Richardson said, eight unpaid furlough days would have been necessary for 362 workers at state museums and monuments. About 2.5 furlough days would have been required for more than 1,100 workers in the Human Services Department who handle income support services such as the food stamp program. Workers at the alcohol and gaming division in the Regulation and Licensing Department would have been hit with 4.5 furlough days. Layoffs were possible at the Developmental Disabilities Planning Commission, according to the governor.

Richardson had a pool of about $58 million in economic stimulus money that could be spent at his discretion. He's been allocating money to a wide range of programs, including initiatives to improve high school graduation rates, but he has pledged $20 million to help ease budget problems this year.

Medicaid, which provides health care for the poor and uninsured children, is exempt from the latest budget cuts.

Public schools will mostly avoid cutbacks because Congress recently approved more federal aid to states to help education. New Mexico will receive $65 million and that will mostly offset $77 million in cuts that otherwise would have been made to public schools to carry out the 3.2 percent reductions applied to the rest of government. State aid for school operations, including transportation costs, will end up being trimmed by about one-half of 1 percent.

Sen. John Arthur Smith, a Deming Democrat and chairman of the Senate committee that handles the budget, expressed support for Richardson's move to head off worker furloughs. However, he said Richardson shouldn't spend all the federal aid that remains available and should leave about half for the next governor, who will take office in January.

"None of us want furloughs," Smith said in a telephone interview. "I don't want to aggravate the unemployment problem. After furloughs come layoffs."

Last year, about 17,000 workers in agencies under the governor's control were forced to take five unpaid furlough days to save about $8 million because of a budget shortfall.



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