Maine revenues continue to slip; shortfall as high as $400M
state budget

Maine revenues continue to slip; shortfall as high as $400M


By Mal Leary
Capitol News Service

AUGUSTA, Maine — Gov. John Baldacci has ordered the preparation on an executive order to curtail state spending as state revenues continue to fall below estimates with Finance Commissioner Ryan Low expecting the revenue shortfall now will range between $300 million and $400 million for the two-year budget.

“October revenues were nearly as bad as September,” Low said in an interview. “They are down by $26.8 million.”

He said when preliminary figures were known late last week, the governor ordered the preparation of a curtailment order to stop state spending under his emergency budget authority. He said the curtailment process cannot make up for the entire revenue shortfall, but it is important to stop spending as soon as possible.

“That should go out within a couple of weeks,” Low said. “It does take time to put it together while checking to make sure it does not exceed his authority.”

Last month the governor ordered agencies to identify how they would cut spending to meet a target of $200 million. Low said instead of another round of requests, his office will use those as a starting point and in one-on-one meetings with state agencies, push for further spending cuts.

“We are building our budget on the assumption that we are going to see a revenue reduction of $300 [million] and $400 million,” he said. “If it’s less than that, I will be really happy. But, we have to plan for the worst.”

Low said the curtailment order would cut general-purpose aid to education at greater levels than have been publicized. He said the figures distributed to schools recently were based on the $200 million target.

“It is important for the schools to know as soon as we can tell them what the size of the curtailment will be,” he said. “But we don’t know that yet.”

Sen. Richard Rosen, R-Bucksport, the GOP senator on the Legislature’s Appropriations Committee, said the bad revenue news in October was not unexpected. He said members of the panel from both parties have been expecting that revenues would not meet estimates; the question has been how big a problem they would face.

“We now have a better understanding, although we won’t know the actual projection until after the revenue forecasting committee meets later this month,” he said.

Rosen said the already difficult job of the committee is made more difficult as the red ink mounts. He said the panel needs to look at restructuring state government and eliminating some current programs because no one expects the economy to recover quickly.

“It doesn’t help the future of the state. It does not help the young people we want to attract to Maine if we don’t face the music now and face the problem before us,” he said.

Rep. Emily Cain, D-Orono, co-chair of the committee, said the revenue shortfall is troubling. She said that more than ever the often-repeated phrase of “everything is on the table” has to be followed during budget talks.

“We really have to talk about all the options and what they mean to the state,” she said.

Cain said the committee already has planned to meet six days in December to work on budget issues. She said there would be more if they can be productive.

Low said there was very little good news in the monthly revenue report. Like September, all of the major revenue sources failed to meet their targets.

The single largest source of state revenue, the individual income tax, continues to be significantly below projections. It was $19 million under estimates in October, or 15.2 percent off projections.

The second-largest source, the sales tax, was also below estimates. Of the 10 revenue categories in the memo, only estate and tobacco taxes were significantly above estimates. A large estate settlement spiked revenues $3.5 million above estimates and tobacco taxes were $754,000 over projections.

After the first four months of the budget year, revenues are $69 million below estimates.

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Comments
54 comments on this item

time to cut the IFan W gods , god bye wardens -you gusy ahve 50 percent the visitors and yet staff full -retire . leave do whatever but cut the budget 50 percent

they are unneeded -arrogant and undiciplined

Look at a 2.5 billion shortfall. The news will keep until it happens. You had better hide your retirement, IRAs, pensions, 401Ks or have it nationalized by a hungry government.

We haven't seen the worst of this so called "recession" yet.... I believe this winter will be a very tough one!

Have no fear, good people of Maine.

John Baldacci (D) and Emily Cain (D) Orono are going to steer us through the crisis. He couldn't hold a dishwasing job at the family greasy spoon and she's never had a job.

We're in good hands.

Cut Dirigo. That will help make ends meet.

Well, the second biggest welfare state right behind California is now struggling. Yep, Maine. captainandy would be correct. I guess its time to look at programs like Methadone maintenance? However not likley that we will cut the welfare- Just a few more teachers, firefighters and cops will loose their jobs, but not the welfare.

It is amazing how many of the Dimocrat Reps have never had jobs.... Kinda like the "Community Organizer" we have as a President.

Keep handing out welfare checks, opening drug clinics, and chasing any chance of small businesses being able to succeed in Maine and watch the deficit continue to rise.

MaineCare reimburses physicians over $130 an hour. WOW! Probably sounds a little excessive, especially for hardworking people that can't afford their insurance premiums!

I charge $135 per hour for my "3 drunks 'n a truck", business. I'm glad I didn't do all that silly studying now!

Baldacci will need to call the TAX CLOWN Joe Perry to find a new way to steal our money.

If they wanted to save money, here's lots of ways. http://www.maineopengov.org/

And I have no building, no secretaries, very little insurance, no accounts receivable, and pay very little taxes!

Cut everything except Dirigo Health and the governor's 41 "special assistants". Oh, and the Blaine House budget needs more $$...

maine cannot afford the services they provide nor can the people who work and pay taxes...if the economy comes back we need to make sure they don't make the same mistakes...by adding more goverment again..emily Cain, Hanna Pingree and the rest of them need to have a real job for a while...

Manufacturing is gone or leaving this state and these politicans are more concern on the services they can provide they should be marketing this state.

Instead they will send every organization out there to bleed companies with fines. Some of those companies are either down sizing or closing cause the

return on investment isn't there... Every fine that is paid to the state or feds is cutting jobs.. Oh did i read the biggest money for the state is income tax.

and the second is sales tax. I guess they just don't get it. Maybe they need more education. Remember the 2003 election's the casino in southern Maine to create 10,000 jobs. We could use the money. We need to sell what we have in this state for jobs so everyone can prosper or the last person leaving can close the lights.

The best way to kill a tumor is to cut off its blood supply.

We went through a huge short fall when Jock Mckernon lied his way into office by saying we had plenty of money. The country is in troulbe not just 2 states, and it all started under George W. Obama hasn't been in long enough to blame for all of this. The University system needs an complete overhaul. Tuition goes up continuously, classes aren't offered in time to graduate so the kids have to all come back for a class in the fall to get their diploma. They don't need a President, dean and chancelor, The employees earned time could be cut back a tad. Who else works and gets sick time they can accumulate for years? I don't get any sick time on my job. I don't know many that do. Much less vacation time and sick time that you can let pile up for years and take a 6 month paid vacation. You talk about doctors being over paid by the state, look at PCHC, they get federal and state plus insurance, they end up getting 200% pay back on each patient.

How's that "creative economy" workin' for ya, Baldacci voters?

Yes Mr. Rosen, your slick under-estimates were slack. But what do you intend to do about the undisclosed massive and growing gap in the states pension plan? Maybe a start would be to level with the citizens and inform them of the extent of lthe liability and set up a plan to fill the gap? Or you can do what you did last time and just declare "I was shocked when I found out", as if you didn't already know. How long do you think you can play this game?

The revenue shortfall is "troubling?" Like the rising water on the Titanic, right?

I wonder if the SEIU knows that "everything is on the table."

they say there best revenues come from income tax and sales tax. well, if we don't find ways to keep people working, that shoots both ways down. you don't pay income tax without a job and if you don't have a job, the sales tax takes a hit also. i wonder if we asked our trusted elected officails how much they make, how many vacation days they get, would they answer us? would they for once take a pay cut instead of a big increase every year. i doubt it. we r in trouble and again, they will find a new way to tax the people be it with fines at roadblocks or taxing tobacco again where they know most smokers are not to well off to begin with. and we wonder why no new companies wanna come to maine, guess again.

and you you wonder why NO new Diverse Companies will Come to Maine....and I wonder HOW MANY people have cancelled thier upcoming winter/summer vacations in Maine due to the Election results.....I know of a few.....besides my own $2000 vacation budget Cancelled my next summer weeks vacay in Maine .....so there is Millions lost...the Catholic Church will help you make it up...LOL (stew in your won bigoted juices)

What's this????

Why are people upset and scared about a little $400 MILLION "gap'?

Now that the unions and state leaders and MMA spent a couple million dollars LYING about the Taxpayer Bill of Rights, and dispensed with the NONSENSE that Maine voters should approve future Tax Increases... their top priority will be to make up for their gross overspending with plenty of TAX INCREASES.

First up will probably be a nice increase in the GASOLINE TAX in January, to pay off the road construction firms who donated to the aniti-TABOR campaign.

Then watch for a 1/2 or full cent increase in the newly-expanded SALES TAX (though this may have to wait untill they can LIE their way through the People's Veto effort on their cute little "Shift & Shaft" tax reform/increase plan that the voters will decide in June.)

If the People's Veto fails, watch for the state to keep the high income tax rate of 8.5% AND increase the Sales Tax.

State employee furlough days??? A THING OF THE PAST!!!

State employee raises??? YOU BET!!! Nothing is too good for these hardworking lackies, some of whom have to work all the way to 52 or 53 before they can "retire"... oh Boo Hooo Hooooo! (THEY expect to be paid off for their union's "contributions" to defeat TABOR too!!!)

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MAINE: What Happens When You Re-Elect Liberals!

INCREASE the State Sales Tax. . . . get it over with!!!!

INCREASE the State Sales Tax. . . . get it over with!!!!

Yeah sure.......just what NH is waiting for; they love Maine goverment!

I wonder how much revenue could be generated if all the millions of acres now in not for profits land trusts (thank liberals and environmentalists) were on the tax rolls? Time to whack the taxes on the trust funders and any individual making over $100,000. without emplyees. Leave all businesses alone. They create jobs. People with jobs pay income taxes. Provide tax credits for Maine based businesses with incentive to invest in machinery and infrastructure. Quit killing the geese that lay those tax paying golden eggs. Pretty damned simple, but the beatiful people who passed these bills that increased welfare and killed jobs don't need to worry as long as Maine taxpayers are picking up their tab. Time to fire them and see if they like working for a living !!!!!!!!!!!!!!!!!!!

I believe Representative Cain is putting a good effort in trying to construct a good working budget. At the same time I question her credentials. Speaker Pingree has been quoted as saying that Cain "has experience with the budget", but what experience is she she talking about specifically? Her resumé is fairly short and doesn't include anything related to finance, economics or anything business related. Her degree is in Vocal Music Education, she worked for the Honors college and state chair of the Maine delegation to the New England Board of Higher Education. That's it. Which of these things says "budget master" to you?

Her main credential seems to be that she knows how to talk like a politician (does she ever!). Scary!

Hey, things are going great, just ask Obama. Warren Buffet and Bill Gates say everything is looking good for them, too. I hear all the corporate welfare recipients are just fine this holiday season. Somehow, here in Maine, we haven't shared in the largess.

The budgeteers in this state are a bunch of blindmen (and -women) and HAVE to be replaced. But they won't, and their list of must-pay bills dictated by their special-interest controlled masters allows them no trade space. Cut the payroll and stop paying support to new arrivals who came just to get on the dole.

Simply put, this government is too big for the State and it has driven revenue out.

Kind of like kicking your dog every day. Pretty soon it will leave and won't come back.

This is the government we elect when there are more Government Supported voters than Private Sector voters. Simply, cut, cut, cut, and if anyone even suggests raising taxes immediately label them a YES on ONE bigot and feed them to the wolves!

Sounds like a plan, TurkeyTalker

Bet that Grand Casino in Sanford would look great right now with 10,000 jobs and plenty of gambling money to scam. Alas Baldy is against Casinos, especially run by Native Americans.

Don't worry Maine, Obama and Socialist Democratic Party will save you all.

So how's that 'Hope & Change' working for you know ? Nov 2010 is just 11 months away........

<-----voted for Woodcock.

Now go read the story about the cheerleaders in Brewer celebrating the new $39,000,000 middle school. Oh, and the other 3 new schools around that will cost an additional $13,000,000. Then Bangor, who like Brewer just got a new police station, wants a civic center for ~$80,000,000. Meanwhile taxes and the unemployment rate both go up.

I meant the other schools will cost an additional $130,000,000!!!! Almost half of that for the wonderful and trendy town of Hampden.

CONSERVATIVES' answer is to blame someone and do nothing? Actually, I think they say, "Quit your complaining, pick up and oar, and start rowing with the rest of us" rather than having a dozen reasons and more excuses why NOT to do something. All I hear from the Liberal lot running this state is, "Shut up and pay your taxes."

This is part of the change people voted for last year. $400. mil should be 600 next year. One of the people you can thank besdes Baldacci is Mike Michaud and the way he is voting in Washington put bankrupt use all! Hopefully he will be gone come next election day!

Geez, a shortfall as high as 400 million over a 24 month period.

Who does the estimating.

TheTruth wrote: "Conservative's answer to everything is to blame someone, do nothing and name call. At least Emily is trying... what is neocon and captainandy, Mr No-Facts Launch Personal Attacks, doing. Nothing but complaining and name calling. This is why conservatives are being held in low esteme".

Emily is trying. BFD. A music major making sour notes with 400 million dollar budget shortfall. She isn't trying. SHE IS FAILING. Augusta is a nest of left wing liberals. Conservatives are not in power now so exactly who is to blame and would Baldacci's band of tax and spend more than they bring in liberals even listen to a bit of fiscal sanity coming from the right?

What are the Conservatives supposed to do? Sit back and pay for every hair brained scheme put in place by the Baldacci regime? HAS ANYTHING WORKED?

Listen to Obama proclaim the 900 billion to 1.3 trillion dollar health plan won't contribute one penny to the deficit and is "paid for"? By whom?

Baldacci raises the gas tax, the candy tax, the restaurant tax and the auto repair tax so the "Tourists", who show up the end of June and leave by Labor Day, will be paying their fair share to the Greatt State of Maine while the year round residents have to suffer with these increases 12 months a year? What a great idea!!!

People in New Jersey and Virginia have spoken and ousted big spending liberal governers. Mainers should follow suit in the next election. Could a change be any worse than what they have in Augusta now? The current regime is out of touch with reality and the people who are taxed to death are fed up with working so hard only to see a third to a half of their pay go to able bodied baby making machines who refuse to be productive members of society and leetch their very existence off of what is now becoming the working poor class.

It is people like you who are ignoring the growing backlash to the leftist liberals who tax this working poor class and spend it to increase their power base of illegals, welfare cheats, disabilty fakers and those on the public dole by choice so as to keep themselves in power with the votes of the derelicts of society.

I'm not talking about those truly in need of a safety net that should be provided. Lord knows they could have a lot more if the system were purged of the cheats and able bodied people who refuse to do anything but accept a hand out from the tax paying public.

The more of them we have, the more votes the liberal left gets. Remember, to the guy who doesn't work, the guy who makes 25 grand a year is a rich SOB and should be taxed to death to help support his public assistance.

IT is sickening and needs to be stopped.

NOW!!!!!

This state is broke. For years a minority, working taxpayers, have supported the welfare state. They are tired of paying for other peoples screwing and for those who lives are nothing but a drain on society. The state has no income and the politicians can only blame themselves and the failed policy of the public tit that will never stop giving milk. well Augusta it has run dry. The minority, the taxpayers can give no more, thus you can spend no more.

Take note that the Maine Maritime Academy isn't taking any budget hits.. still receiving $9,000,000 from the state coffers for a student body of which one half are recruited from out-of-state. At some point people are going to start to wonder why vital state services are being cut and yet have lavish subsidies for out-of-state students who leave immediately after graduation and never look back.

Ronfromdowneast - thank you for making my point.

Don't get your hopes up about next year's election in Maine. Mainers love moonbats politicians - if you have a "D" after your name on a ballot, that's all most people see before checkin' that baby off. The Question 1 vote was a fluke...the TABOR, excise, and bond issues all went lib.

Voters in Virginia and New Jersey woke up a few weeks ago; Mainers will probably send Libby Mitchell to the Blaine House next year. Of course, most voters in Virginia and NJ have teeth and a muffler on their car.

Just face it. Legalization of marijuana for personal use that can be taxed not only will take care of the defecit, but provide a surplus for many years to come. And I haven't had a joint in 20 years! What's the old saying? "As Maine goes, so goes the country?"

This is not news anymore! It has become common! This welfare state needs to make a lot of changes if we want to see something different! The first post about the IF&W was an accurate one! They are only one example of a tax burden and are essentially useless in our society! Cops, Border Patrol, Sherrifs, and State Police can do everything they do and do it better! The State must eliminate all of the useless BS that is being spent on DIRGO Health! This is a useless peice of junk health insurance plan. The ATV Task force started as a small group of individuals who were delegated to provide land owners with insurance so that land owners are more willing to let people use their land. Well guess what folks, wake up and smell the petunias! The ATV Task force now has their own Office building in Augusta totally funded with our money and club memberships. Just another example. People, open your ears and eyes. Look around you and the wastfull spending will be very apparent. If you ran your business like the State is run, you would have been shut down, leans placed on your home, doors shackled, and your name would have been plastered in this paper! This state is run by a group of bafoons who do not take their jobs seriously, however are more than happy to take our money! We are being bent over without a kiss! Look around! You'll see what I'm talking about!

lol capt. you are exactly right, this bald freak of nature who has sunk maine into a place it will take years to see day light, HAS GOT TO GO!!!! we,ve had enough of ya baldacci, and take your wierd family with ya.( we saw you and your whole family at a pub in bangor, and you were all trashed, wonder who drove home) 15 years ago on 95 my brother was in a car accident with baldacci. bald man was drunk, and covered up the accident, and sent my bro down the road like nothing happened. so our family knows first hand what kind of con he really is, and we didnt vote for him either. thank god he,s leaving soon.

People voted Tabour down now for any reform the state needs to go broke..... Can't depend on the politician for the right decision cause they apperently don't have enough education........ The three things they hide behind the flag children and education.... And the people go for it everytime....

Show some patriotism - our state, our country. I challenge every Maine citizen to contribute what they can so that our fair state can prosper economically. Ask not what your State can do for you, but ask what you can do for your State! Go Get'um Mainers!

For those of us whom are sick and tired of the status quo approach by the Baldacci Administration, it's time for change... and that will require action. We need major cuts in state government, and we need them now! If you would like to be part of the solution, please visit the growing grassroots organization at

www.MaineTaxpayers.com

We the people deserve a better government,

but this won't be any easy change.

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