"Any unspent money has to do with hiring issues, and that is part of the management problems we've been talking about," she said.
The Administration said the unspent money "goes back and is used in the next budget" and has "virtually nothing to do with the deficit."
In previous years, the administration either vetoed or left unspent money appropriated by the Council for that purpose.
Now, the unspent money will revert to the state's general fund.
But the unspent money is both a problem for the board and an opportunity for the politicians.
Congress would like the already appropriated but unspent money to go to aid farmers.
Nineteen states had accumulated more than $100 million in unspent anti-poverty money.
But even the state's famously expensive program finished last year with an eye-popping surplus - nearly $350 million in unspent Federal money.
New Mexico finished last year with $67 million in unspent money and a record of missed opportunity that few are eager to defend.
He said he would also encourage states to draw on unspent federal money already allocated to job and welfare programs.