Lawmakers OK $166M supplemental budget
Budget

Lawmakers OK $166M supplemental budget


By Mal Leary
Capitol News Service

AUGUSTA, Maine — Lawmakers overwhelmingly approved an emergency measure Tuesday to bring the state budget out of the red for the fiscal year that ends June 30. The $166 million supplemental budget was enacted by votes of 120-22 in the House and 31-3 in the Senate.

“I want to congratulate the Legislature and the committees for their work on this,” Gov. John Baldacci said in an interview. “This was a difficult budget and now we have to work on the biennial budget, which will also be difficult.”

Leaders of both parties supported the measure, which was crafted and approved unanimously by the Legislature’s Appropriations Committee and had significant differences from the governor’s original proposal. Baldacci had proposed a package of one-time revenue sources and spending cuts to bring the budget into balance, but an accounting mistake at Maine Revenue Services added $11 million to the budget gap.

“We fixed that by taking additional money from the reserves,” said Rep. Emily Cain, D-Orono, the House chairman of the panel. “We know that in many ways there is even harder work ahead of us as we take up the state budget for the next two years.”

The governor had proposed using $45 million in reserves but agreed to increase that to $56 million after the mistake in sales tax revenues was reported. There also were several one-time savings in various spending accounts as well as cuts in programs.

“It’s about half one-time sources of revenue and half in cuts,” said Rep. Sawin Millett of Waterford, the ranking GOP member of the panel. “We have put off some of the more difficult decisions to the biennial budget.”

Millett is concerned that so much of the budget consisted of one-time money sources and had hoped more could be cuts that would help in balancing the biennial budget.

Sen. Bill Diamond, D-Windham, the Senate chairman of the panel, said the unanimity of the committee should not be misinterpreted. He said it was not an easy process to achieve that level of support.

“We have set a tone that we will need to solve the larger budget issues still before us,” he said.

Sen. Richard Rosen, R-Bucksport, the GOP senator on the Appropriations Committee, agreed.

“This has been a good dry run for everyone,” he said. “We are now ready to embark on the next challenge.”

But not everyone believes the panel went as far as it could in finding cuts.

Rep. Richard Sykes, R-Harrison, questioned why the budget cut $10,000 for training police officers on how to handle incidents with mentally ill individuals. He said that money could “easily” have been found in the Legislature’s budget.

“If we are to look under every stone to find money, we need to begin looking at ourselves,” he said.

Sykes said it costs the taxpayers $13,160 a day for lawmakers to meet, and reducing legislative sessions by just one day would have allowed that training program to continue. He serves on the Criminal Justice Committee, which was critical of the cut.

Education is the largest area of the state budget and took the largest cuts. Aid to schools was reduced by $27 million, and the state’s higher education institutions — the university system, community colleges and Maine Maritime Academy — were cut by $12 million.

Several lawmakers considered trying to amend the budget to change the way aid to local schools would be distributed, but they did not offer amendments as it became clear in party caucuses that there was little support for a change. The cuts will be distributed by the same formula used to allocate school aid.

The second-largest area of state spending is in human services, and various programs administered by the Department of Health and Human Services were cut a total of $34 million.

One of the most contentious issues was payments to hospitals and doctors. Payments to doctors who work for hospitals was reduced by $1.7 million.

A provision was added that makes settlement payments to Maine hospitals for bills they are owed a priority when any of the Medicaid economic stimulus funds expected from Congress arrive.

The budget does delay some difficult issues. Instead of closing a unit at the Charleston Correctional Facility, it eliminates two advocate positions and the Department of Corrections leadership training program.

An additional $100,000 in savings will result from heating the minimum-security prison around the clock with a wood boiler that will be staffed during the third shift by corrections employees who have offered to volunteer their time.

Baldacci said he plans to sign the budget into law Thursday morning.

The Legislature now shifts its focus to Baldacci’s proposed $6.1 billion budget for the two years starting July 1. Public hearings on that package, which seeks to bridge an $838 million gap between revenues and spending, will begin Feb. 9.

The Associated Press contributed to this report.

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Comments
12 comments on this item

What a joke, they rush through our budget process because a snow storm is coming in our direction...we live in a state where it snow's, so they should deal-with-it and not rush important decisions which will affect thousands of Mainers. Would anyone like to bet on whether the Baldacci administration will decide to close state government and give most state workers an extra paid day off? While I understand the safety risk, we all have safety risks with driving in a storm but most taxpayers don't get the day off at the expense of all taxpayers. The legislature has already announced they have cancelled for today, which will also cost taxpayers lots-of-money. We need better decision-makers leading this state!

The Governor and Legislature itself seems to be insulated from these tough times. Again, and as I have posted on these comment pages before...how many "Special Assistants" are needed in the Governor's office? Who is overseeing the expenditures of the Legislature? The Legislature. We need to "regionalize" or consolidate the Legislature. Why do we have State/Municipal/County bureaucracies?

It is imperative that the Legislature monitoring their actions carefully. If they are in session - then they need to operate in an efficient manner. Get their work done in the morning session and then let the Committees convene for the afternoon. If no House and Senate sessions, then legislators stay home in their districts and don't run up travel costs.

What the administrators take is chicken feed compared to the entitlements. They see billions going through them to the multitudes, and they take a little for themselves. At least they work (hopefully) for it. Try gutting entitlements. You'll get nowhere. The news media will ratchet up the horror stories like the one about the 90+ year old guy that died because the power company restricted his electricity. Can anybody die without it being someone else's fault? Apparently not. The guy that killed his family and himself? His fault or the employer that laid him off?

What if Baldacci donotes his time and gives that money to the prison to pay the guards.

Very interesting that the BDN never reported on the $22-million in sales tax that went missing over at Maine Revenue Service. Gotta wonder who stole it.

$11 million accounting mistake? Easiest way for Maine to save money is to only hire as people as they need and get people who actually know how to do the jobs they are hired to do.

“I want to congratulate the Legislature and the committees for their work on this,” Gov. John Baldacci said in an interview... NO THANK YOU JOHN FOR GETTING US INTO THIS FISCAL MESS!

Education, 27 Million dollars!!!!!!!!! Why does education get the largest budget cut? Do they want our children to grow up stupid?! Education is vitally important, and to cut the budget by that much only makes things worse for our children. Thanks for nothing Gov and legislature. Our children's future depends on the quality education they get!!! This is ridiculous. How dare they.

Our children is the state of Maine's future. Local schools that have the responsibility for educating our children to become vital citizens will suffer from such a huge cut of 27 million. How do you expect our children to compete in tomorrow's world that continually challenges thinking outside of the box?

Where is our governor's and legislature's commitment to our children, our youth, and our young adults? Ridiculous. Never do you short change our youth. Never. You give them every opportunity that you can create. Thanks for cutting our hands off.

How about using the reserves to pay hospital debts??

How about using the reserves to pay people's mortgages?

No need to worry about those pesky hospital debts and home mortgages, our savior has arrived and he has promised to cure everything.

Thank you, may I have another glass of kool-aid now?

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