State spending would increase by slightly more than 6 percent next year under a $6 billion budget proposal heading to the House for consideration.

Legislation approved by the House Appropriations and Finance Committee on Tuesday would provide an increase of $347 million, or 6.1 percent, for public education and general government operations in the fiscal year that starts in July 2008.

Public schools and the state's network of colleges and universities account for nearly half of the proposed spending increase. Health and human services programs, such as Medicaid, represent slightly more than a third of the budget increase.

The House is expected to debate and vote on the budget later this week.

Key provisions of the committee-approved budget:

• About $2.6 billion for operations of public schools. That's a 5.2 percent increase in spending, or almost $126 million. That includes money for school districts to provide 2 percent average salary increases for teachers and school workers. The budget also provides for a 0.75 percent boost in employer contributions to a financially troubled education retirement fund and 0.20 percent increase in employer contributions to shore up a retiree health care program. The committee considers its proposal as a combined 2.95 percent compensation package. Certain lower-paid school employees, including educational assistants, custodians and food service workers, would get an additional 1 percent pay increase.

• About $883 million for the state's higher education network, an increase of 4.3 percent or $36 million. Included is money for a pay package similar to that for public school teachers, including 2 percent salary increases for faculty and staff.

• 2.4 percent pay raises for most state employees and an 0.2 percent increase in employer contributions to the retiree health care program to improve its solvency.

• About $798 million in state money for Medicaid, which provides health care for uninsured children, the disabled and low-income adults. The appropriation provides a 13 percent increase, or almost $91 million, over current spending. Most of the state spending increase is to cover more people being enrolled in the program.

• About $299 million for the Department of Health, which is about a $13 million or 4.5 percent increase. Included is $4 million to reduce a waiting list for services for developmentally disabled individuals.

• About $204 million for the Children, Youth and Families Department. That's an $8.3 million, or 4.2 percent, increase. About $5 million of the increase was for juvenile justice programs, including medical care.

• $295 million for the Department of Corrections. That's a 6.2 percent, or $17 million, increase. Much of that is to cover higher costs of medical care for inmates.
  

The committee recommended an additional $5 million to expand pre-kindergarten programs across the state. Of that, $3 million would come out of the state's main budget account and $2 million from federal block grant money that states can use for services to low-income families with children.

The committee's proposal is less than the $9.3 million Gov. Bill Richardson requested to expand pre-kindergarten.

The committee-approved budget also provides $3 million of the federal grant money for a program that extends the school year for children in kindergarten through third grade in high-poverty schools.

About $150 million is provided for one-time spending on projects and programs using surplus money from the state's reserves. The Transportation Department would get $47 million for highway maintenance. The agency has been squeezed financially because of higher construction costs and less-than-anticipated federal money. The one-time spending includes $14.5 million to supplement Medicaid in the current fiscal year.




© Copyright Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.