SANTA FE, N.M. (AP) — New Mexico's newly inaugurated Democratic governor is proposing a half-billion dollar increase in annual state spending on public education after years of austere budgeting by her Republican predecessor.

Gov. Michelle Lujan Grisham on Thursday released a budget proposal that calls for a 13 percent increase in general fund spending to $7.1 billion for the fiscal year starting on July 1.

The proposal includes a 6 percent pay increase for teachers and educational staff and higher minimum teacher salaries. The plan also seeks $110 million in new school spending directed at st...