The number of exempt employees in state government — quickly becoming a magnet for criticism by lawmakers looking to balance the state budget — would shrink under two measures introduced Monday.

The proposals, introduced by a Republican and a Democrat, would limit the number of the employees who serve at the pleasure of the governor — a number that has grown under Gov. Bill Richardson.

"Governor Richardson's political appointments, who are often considered political paybacks, are costing the state over $40 million a year," Sen. John Ryan, R-Albuquerque, said.

"There are a lot better uses for this money, especially as the state faces a financial crisis," Ryan said in a statement. "In order to pay for the governor's friends on the state's payroll, programs and services have lost out on that funding."

Ryan's bill would limit the number of exempts appointed by the governor to 220, eliminating 281 exempt positions in January 2010.

"I think we need to have some kind of limitation in state statute that kind of sets a parameter," he said during a debate on the Senate floor Monday. "I think that's a better way to do it than have an unlimited ability to create these positions."

Another bill, sponsored by Rep. Nate Cote, D-Las Cruces, would reduce the number of exempts by at least 180 positions, which Cote said would save more than $8.1 million this fiscal year and about twice that next year, according to the bill. It sets a Jan. 22 deadline for making the cuts.

"I believe there may be millions available we haven't looked at yet, and we need to do so. It has been recommended that we cut public education and Medicaid, yet we haven't looked at the high-salaried, exempt employees," Cote said.

While the state is talking about cuts to education and health care, Cote said cutting the number of exempt employees could be a big money saver as well. His bill applies to exempt employees making more than $50,000 a year.

"This is one door that has not been opened," he said.

As the discussion plays out, it's clear that the estimates on the numbers of exempt employees and how much they cost the state vary greatly.

Ryan said during the debate Monday the number of exempt workers is 500 — with an average salary of $80,000. He said that's up from 167 exempt employees under former Gov. Gary Johnson.

Department of Finance and Administration Secretary Katherine Miller, who faced lengthy questioning on the Senate floor about the exempt employees, said it's more like 450.

"A lot of wrong statistics are out there about exempts," she said.

Miller defended the number of exempts and pointed out the governor isn't the only one who hires them.

"I think when you look at the size of state government ... proportionally, that is not an unusually high number," she said.

The Attorney General's Office and the Legislature also have exempt employees, she said.

"There aren't any classified employees in those offices," she said, "but nobody makes a big issue of that."

Whatever the number, the practice has drawn ire from lawmakers.

Senate President Pro Tem Tim Jennings, D-Roswell, said the increase in the number of exempts hired by the governor shows wrong priorities on the part of the executive.

"Why is it that all the people who are exempt qualify for recurring (expenditures) and yet (to) the children who can least take care of themselves, we sit there and say, 'no you're not recurring,' " he said during the floor debate, referring to the hundreds of developmentally disabled children on a waiting list for services.

Meanwhile, lawmakers set to reduce state spending by $660 million in the session that started Saturday are also working to reduce the amount spent on the Legislative branch.

Under one measure (HB 16), the expenditures of the legislative branch in 2010 would be reduced by 5.3 percent. It was unclear what that amount translates to in dollars or what the specific cuts would be.

Another measure (SCR 1) calls for lawmakers to voluntarily reduce their per diem payment of $159 a day by at least 10 percent.

If all 112 lawmakers did that, the state would save $1,780 a day for each day the lawmakers are paid. The elected "citizen legislators" don't get a salary but receive per diem payments while they are in session and on days they do other legislative work, such as interim committee meetings.

Already, the House has cut 13 staff positions to save money.

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog at www.greenchilechatter.com.