Budgeteers keep eyes on Washington
Stimulus

Budgeteers keep eyes on Washington


Maine lawmakers pin hopes on federal stimulus funding
By Francis X. Quinn, The Associated Press

AUGUSTA, Maine — Maine lawmakers gearing up for deliberations on a new two-year $6.1 billion budget are pinning their hopes on Washington to help address a looming $800 million-plus shortfall.

Reflective of State House anxiety and uncertainty has been Gov. John Baldacci’s decision to put off a State of the State address until later this month.

Baldacci administration budget chief Ryan Low was assigned to brief the Legislature’s Appropriations Committee on Tuesday about the prospects for state aid in the developing federal stimulus package, but could offer little definitively.

“I think we’ll know more over the next few days,” said Low, who is the commissioner of the Department of Administrative and Financial Services.

Finding common ground with several panelists, Low said the governor wants to create a structure through which lawmakers and the public can track whatever money is made available to the state and “see the flow of funds and what they’re being spent on.”

Low also said the administration shares a concern of at least some legislators about committing a one-time infusion of funds to program expansions.

Debate began on Capitol Hill on Monday night on an $885 billion Senate economic plan. A House bill worth about $819 billion received no Republican votes when it passed last week.

On Tuesday, the White House released estimates that its stimulus plan would create 800,000 new jobs — including 16,000 in Maine — in 10 eastern states.

Low said state officials have seen estimates ranging from $600 million to $1.2 billion for Maine government entities alone and that the governor hoped to be able to speak to the impact of a federal stimulus package on Maine in his State of the State address.

Low also said details of a federal package could affect decisions on new state bonding.

Last Thursday, Baldacci signed into law a supplemental state budget designed to bridge a $140 million General Fund revenue shortfall through the end of the current fiscal year June 30. It had won swift and overwhelming support in the House and Senate.

Baldacci, who made his 2008 State of the State address on Jan. 9, scheduled a meeting with Democratic and Republican legislative leaders Tuesday afternoon.

In early January, Baldacci unveiled a historically austere two-year budget to address an $838 million shortfall that would eliminate 219 state positions, requiring 139 layoffs, trim some state tax rebate programs, transfer 118 inmates to privately run prisons and raise natural resources agency fees.

Appropriations Committee hearings on that proposal open next week and are scheduled to run for almost a month.

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Comments
8 comments on this item

Somehow, I'm sure the democrats will find a way to spend whatever they can get away with on more social programs and not on one time capital improvements that would have long term benefits and possibly create jobs.

Much too dependent on federally reimbursed programs.

"Me first, gimmie gimmie" said the Maine legislators. Hey Augusta, cut your spending!

Let's not forget that 49 states are also begging for a "free money" bailout, so Maine'ers will be paying thru the nose for Fla, Calif, NJ, NY, Ma. .. etc. bad budget decisions which are worse than Maine's. Earth to taxpayers .. there is no free lunch ... it's just shuffling the debt to a higher enforcement agency.

I could give the State of the State address today. The condensed version is: the State is in big trouble.

Coolfusion - I take no comfort in your reminder that all of the other States are failing like Maine. It really is a good indication that our whole economy is collapsing and the existence of this country is in jeopardy.

Mmmmmm...I smell pork!

We are closing in on near bankruptcy on the whole system and we are waiting to see if we will get more money from some other means............ Borrow, borrow, borrow. That's the reason we are in this situation.........Our spending has gotten out of control, that includes you too, STATE OF MAINE.

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