Gov. Bill Richardson is recommending a $6 billion state budget that will provide a 6.4 percent spending increase next year to pay for public schools, higher education and general government operations.

Secretary of Finance and Administration Katherine Miller outlined the governor's spending recommendations Monday to House and Senate committees that handle the budget.

The Legislature convenes next week for a 30-day session, but the budget panels start their work early.

The governor's budget proposal provides for a $362 million spending increase in the 2009 fiscal year, which starts next July.

Education and health care account for most of the recommended budget growth. Part of the budget would help implement the governor's plan for expanding health care coverage of all New Mexicans.

Richardson proposed a $119 million increase for public schools, the Department of Education and other education programs. That's almost a 5 percent increase in spending.

An increase of $110 million was proposed for Medicaid, which provides medical services for children in lower income families and to some needy adults. Included was almost $9 million to provide health care coverage to nearly 9,000 additional children — part of Richardson's plan for lowering the number of uninsured New Mexicans.

The total spending increase recommended by the governor is similar to the slightly more than 6 percent budget growth proposed by the Legislative Finance Committee, which is the Legislature's permanent budget oversight panel. However, there are differences in the budget details.

For instance, Richardson proposed more for Medicaid than the LFC, which recommended an increase of about $84 million or 12 percent to cover anticipated enrollment increases in the program and to offset declines in federal matching money.




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