Baldacci orders agencies to cut $150M

Baldacci orders agencies to cut $150M


By Mal Leary
Capitol News Service

AUGUSTA, Maine — Gov. John Baldacci has told state agencies they have a week to come up with ways to cut $150 million from current state spending as state revenues fall further behind projections.

“We are in a recession,” he said in an interview Wednesday. “I don’t want to cut, but I have an obligation to balance the budget.”

Baldacci said Maine is not the only state facing steep declines in revenues, and he is having discussions with legislative leaders about whether to have a special session this month to make cuts he cannot make under the budget curtailment law or have the new Legislature in December consider cuts just after lawmakers take office.

“There are limits to what I can do,” he said. “I cannot eliminate a program when that may make the most sense. We may want to look at some of the ideas in the 10-percent memos and pass them to take effect this year.”

Baldacci is referring to budget proposals from state agencies for the new two-year budget that starts next July 1. Last month he required state agencies to submit budgets that cut spending 10 percent.

The governor said even though the Revenue Forecasting Commission has not completed its work, it is certain that revenues will be re-projected down by as much as $150 million for the current budget.

“I can’t wait for that process to be completed,” he said. “ We have to start the process to cut spending now.”

Senate Majority Leader Elizabeth Mitchell, D-Vassalboro, said she had spoken briefly with the governor and agrees lawmakers cannot wait until the New Year to work on cutting current state spending.

“It should be the new Legislature who takes the consequences because it is not just a curtailment of this budget; it will set the stage for the new two-year budget as well,” she said. Mitchell said newly elected Democratic lawmakers are meeting next week to select their leaders for the new session.

“We recognize this is a crisis, and we cannot wait and do things as usual,” she said.

Baldacci also spoke with Senate Minority Leader Carol Weston, R-Montville, who urged lawmakers to move swiftly on making budget cuts.

Rep. Hannah Pingree, D-North Haven, the House Majority Leader, said when the new Legislature is sworn in next month, it will have to start work immediately to address the state’s budget crisis.

“We have had about eight hours to celebrate our wins,” she said. “Now we have to start work to resolve our serious budget problems. I certainly hope Congress acts this month to provide the states some help, because many states have the same problems we do.”

Members of the state’s congressional delegation all support a second stimulus effort. Congress passed a $168 billion stimulus package last February, backed by President Bush, which sent out rebate checks of up to $600 to individuals and $1,200 to couples. The House passed a second $61 billion economic aid plan in September, but it failed in the Senate after most Republican senators opposed it and Bush threatened to veto it.

The senior member of the delegation, Republican Sen. Olympia Snowe, believes Congress will act this month on a new package.

“We cannot wait for the president-elect to be sworn in next January,” she said in an interview. “I think we need to help the states and provide direct assistance as well with a further extension of unemployment benefits that are running out and an expansion of food stamps.”

Extended 13-week unemployment benefits passed last summer are now being exhausted. More than 2,000 workers each week are receiving federal extended benefits in October that averaged about $248 a week.

Snowe said she also supports direct aid to the states including one-time Medicaid payments that can be used for other government uses. That was done in 2002 by Congress.

Another measure getting broad support would be a one-time boost in funding to the states for infrastructure projects like road and bridge repairs and construction. Lawmakers have been discussing a $25 billion package of aid to the states, and Sen. Susan Collins has called for a $50 billion infrastructure plan to help the states.

Snowe said she believes chances of passing a second stimulus package will be bolstered since both the president- and vice president-elect are members of the Senate.

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Comments
35 comments on this item

It sure would help if the maine people could get a 2nd stimulus package.....

I'd still like to see the Governor cut his administrative staff. It's OK for him to tell every department to slash spending and do away with this, that, and the other thing, but what sacrifices has he made? How much longer are we stuck with him?

Personally we don't need another stimilus package...we need results with jobs in our community to get the economy back in place.

Many did not bother to spend the stimulus package but save it which was probably a good move. But it did not help the economy really.

And I agree with readtome we do need the Governor to cut back the staff and what of some of the things in Congress completely and Senate??

Cutting themselves back here in Maine with their spending. I am sure they get quite a bit for free or no cost to them but to costing Mainers.

I think we are stuck with this Governor for at least another year if not two years?? But he has made no sacrifices that I can remember.

And I don't really see him doing much for Maine anymore since he has been governor in my opinion.

It is time for him to move on and move out personally.. time for another change!

We should quit feeding and housing drug users in expensive maximum security prisons and reserve these expensive prisons for actual violent people. We are paying gaurds to watch over non-violent hippies and it's just a waste of tax dollars and backs up our court system. There can't be a shortage of money if we can afford to continue this wasteful policy.

When the state leased the liquor business they received $125 million for 10 year lease which is $12.5 million PER YEAR. Profit sharing is also included which was only $5.5 million for 2007 according to the Bureau Of Alcoholic Beverages. This money goes to the general fund.

When the state had liquor stores the average money that went into the general fund from 1986-2004 was $28.8 million PER YEAR.

It was $1,713,348 in 2005 and $25,653 not a misprint in 2006 when the lease went into effect.

And you wonder why the state has no money.

Don't cut any programs unless they are clearly wasteful and against the interests of the citizens they serve. CUT ADMINISTRATION! There are dozens and dozens of State employees in "administrative" positions whose underpaid, overworked secretary does 80% of their job.

Perhaps an early retirement incentive for State employees should be considered.

Maybe if he streamlined the State Govt and made it actually "Customer Friendly" as they say this would save the $$ needed an more. If we cut now we will have to cut again and again..... unless the "business" is streamlined. Of he cuts and cuts and keeps the work the same with less people the work will not get done or done correctly. It will be shoddy and does not make sense. I feel he is just trying to get by until the end of his term and leave the mess for the next Gov. elected!

And Gov. John Baldacci didn't know this before this past election or Gov. John Baldacci just decided to wait until the day after the election to say something. Save money now CUt Dirigo Health strating tomorrow! And cut Gov. John Baldacci personal staff back by 3 or 4 people.

Or mabye stop spending money on your frikin drugs...............

Have any of you ever visited the State House in Augusta? The front doors in the Hall of Flags have a quarter inch gap between them that lets air just flow freely in and out. These are the types of air leaks that we've been advised to weatherstrip and caulk in advance of high heating costs, only this gap is much larger than anything we'd tolerate in our homes & has been there for years. Everytime I hear about budget cuts being ordered, I wonder if anyone has bothered to fix those doors. They're really a metaphor for waste on a State level - nobody cares how much heat is being lost through that gap.

Just make cuts in State employee health and medical benefits. I'm sure that it would take care of a large amount of the $150 million. I pay less than $500.00 per month for my family through my employer and feel very lucky to have such a benefit. I know others who could pay as well. Oh and we're stuck with Barrachii until 2011!!! Go figure, we re-elected this guy!

II might be time to trim the budget of the Fish and Game Dept. They seem to have bundles of money to throw at projects which are not welcome and one of them is the Branch Pond project they propose which will cost a tremendous amount of money. They propose building a road $$$\, building a boat ramp in a very rocky area $$$, parking for cars and trailers $$$. Do they have more power and money than the State or just poor judgement??

freedomfighter and Bangorean, you are absolutely correct. Many other things can be done. Has anyone called the unemployment office lately? You cannot even get through and when you call Augusta you get someone who can't even find the number to a branch office, then you get a person who cannot answer a question for you and is "too busy" to find the answer. Then let's see, DHS, local offices have staff so untrained that you fill out a paper and get a print of that information that is incorrect. You receive 13 Member Handbooks in two weeks for the one person who has coverage and nine plastic cards. Then there are the MaineCare recipients who do not use normal office hours but ER on a weekly basis and have their claims paid without anyone ever questioning them. There are TANF payments and food stamp allowances for people who work under the table and spend their money on drugs or bingo. Why are there never investigations into people that are on these programs for more then a year at a time? Why do these state employees get away with not knowing how to do their job? Oh yeah, have to throw in the request for information from a Superintendent of schools who doesn't give the information and doesn't even have the decency to respond to the request. Wth are all those people in that office doing besides sucking up money that can be used for other things. Then there is DSER who calls and says you have overpaid by $3000 but then sends you an $800 bill. My point, none of them are managed right. The state agencies in Maine need a serious overhaul because the people running them are incompetent. These people are working for us, the taxpayers, public service they call it. So why is it whenever you call any random office in this state you get an attitude as if you are interrupting them?

Baldaccii.....hmmm where can I make cuts....how bout the office of program and government accountability!!!! Oh wait, I already tried to do that and got CAUGHT!

The Governor did cut his office: http://www.maine.gov/tools/whatsnew/index.php?topic=Gov+News&id=63209&v=Article-2006

You should pay attention to all the news out there and not just what you want to read.

I think freedomfighter should take some of these non-violent hippies home with him. I have worked 15 years at a prison in Maine it is a thankless job I have been spit at had blood through at me as well as other stuff that comes out of the body. So don't set there and tell me that working in a prison is easy work. If the gov. wants to cut programs look at all the hand out we give the people who come to Washington Co. to harvest the blueberrys we ( tthe State) when they first come give them foodstamps,free med,free dentell, free meds delivered to there cabin and free atternoys to sue us. and then they don't have to pay ant Maine State taxes!!!!!!!!

Welcome to Maine's liberal democrat La La Land!

Instead of looking for givebacks and taxing more try Spending Less !

1.- Incompetence just needs to be Fired.

2.- Many $100 k plus Hack salaries need to be Cut.

3.- MSEA (Maine Socialist Employee Assoc.) needs to be castrated with cuts.

They voted Baldacci in as Premier to guarantee their jobs for life. Incompetence begat Incompetence and here we are today.

Yes there are some good hard working productive employees but even they are not secure given the economic reality.

Prioritize the required, and then Cut.

Aside from essential employees like Troopers, DFW, etc., how many department heads take a state vehicle to and from HOME? I'm sure it doesn't add up to much in the grand scheme, but disallowing things like that would add up across the board. Additionally, I have no issue with what we pay the State workers, but do we really need as many workers as we have? Each department needs to take a hard look at how many employees are needed, not wanted. Alright everyone, give me hell if wish!

Oops, I meant "if you wish."

Maybe JB should open a couple more resturants with all profits going to the state. And he could tax all federal employees at 100 % of their salaries and state workers at 75% Sorry Kevin and Mari.

More cuts! Are you kidding! They just cut all foster and adoptive programs by 12.5%, including for children with disabilities. This coming at the same time that he just re-decorated the Blaine House and had a major upgrade to the Capitol Building, WITH OUT a taxpayer vote! I say IMPEACH the governor!

Just wondering if maybe the "cuts" that should be happening are the salaries that elected officials continue to receive after they leave office. It is a question I have asked of several but none will answer. The question is how much do you receive after you leave office? It is my understanding, and if I am wrong then I can accept that I am wrong and a new plan can be found, that the governor and senators receive medical benefits and a salary even after their services are no longer required. That could definitely put some money back in the state. How many of you get paid after you don't work for your respective employers?? Maybe I should run for office.

If Baldaccii would get rid of all his stupid tasks forces (ATV Task Force, etc...), extra buildings, D.I.F.W. and the Behavioral Health Science Institute in Spurwick that would take care of the debt and noone would even notice that they were missing!!! LOL!! Augusta cares nothing for the people of Maine. They want to line their pockets with our cash and attract the non workers so that we can become a bedroom state therefore qualifing for useless federal funded grants. ie. tobacco settlement grant. I would like to know how many people quit as a result of this useless waste of money!!! After seeing what they do for a living it makes me want to start smoking!

I emailed the Governors office on Oct 13 to find out what cuts his office was doing. Here is the response:

We eliminated the positions of communications director and a policy adviser. We are also reorganizing the Governor's Office of Health Policy and Finance, and reducing expenditures in other budget lines, including travel.

David W. Farmer

Deputy Chief of Staff

Gov. John Baldacci, Maine

MooreK, do you work for the Governor? I read the article, and it doesn't say what cuts he has made, it says he will be making cuts. Let's have a follow-up on just exactly what does get cut in his office. I'll believe it when I see it. JJHampden has some great ideas. Hampdenguy, I won't be giving you hell, you've got some good ideas. Truthbox365, I think it is ridiculous, the cuts for the foster and adoptive programs, and it is especially insulting that services have been cut for children with disabilities. Redecorating the Blaine House, man, that should have been a top priority. I agree with you, impeach the Governor.

Ooops, Philster, we posted at pretty much the same time, and I hadn't seen your post.

150 million down, about another 500 million to go and "our" government will be aligned with the rest of us....... tightening the belt where necessary when times are tough.

Don't you mean $850 billion? Country first!

Stevie55 - what are you talking about with "free attorneys?" The only attorneys afforded to folks at none or little cost are the ones that are constiutionally mandated.

Drop welfare to a maximum of 8 months, cut support of unwed mothers if they already have a child and get pregnant a second time, go after the father. Make everyone that is after any type of state aid pass a urine test monthly regardless of who they are. Fail the test you are off the gravy train for life.

For any State aid make it mandatory you have to be an American citizen, live and be employed within the State of Maine for 6 months. If you are on State aid of any type you don't smoke, at almost 6 bucks a pack my tax money shouldn't be paying for it.

Don't cry what about the children. If they are unweb and on welfare. Give them a break and put them up for adoption.

And how many children are you going to adopt, safedman?

I agree with a lot of things you said safedman. I know of two great examples of gravy train in the town I am from. A family moved from a neighboring state with 13 children because the benefits here were so much faster and better than in there own state. Then they proceeded to have three more and are still receiving aid. I know this because they brag about it to anyone who will listen. Another family I know of has five children, a mom with a degree (paid for by the state because she was unwed and a baby on the way at the time), dad with a degree but quit the job because his pay was to much to receive aid, and a new baby on the way. Oh did I mention that none of the children have the same dad. If that is not rewarding bad choices I don't know what is. We can barely put it together for one.

I was talking about Pine Tree Legal come every day to the migrant cabins in Cherryfield to offer FREE !!!!!!!!!!!!!!!!!!!! legal to the Migrants to sue the blueberry Co. I know becouse I worked as a security there.

Why doesn't Gov Baldacci cut of the ;azy welfare recipients who are fully capable of working and choose not to for they get everything paid for through our tax dollars and government funding??? Try forcing welfare recipients to pay a co pay for every dr appointment they go to, dentist they go to..Maybe after he cuts all the jobs he can he can hire the welfare bums to volunteer their services to him to re pay the money they take on a monthly basis!

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