The Legislature’s Appropriations Committee this week begins the grim task of building the state’s 2010-11 budget. Few who benefit from state spending will walk away unharmed. But rather than react emotionally to the expected gnashing of teeth of those affected, legislators must steel themselves to the cold, hard facts and summon wisdom to know where to cut, and how deeply to cut.
Although it is easier said than done, legislators must identify spending that is tied to the life-and-death safety net and value it more highly than spending that is merely worthy because it brings about good outcomes. That work becomes especially difficult when expenditures are shown to be efficacious in the long term, such as spending on education, encouraging better health, economic development and infrastructure.
Sadly, like a household that lives from paycheck to paycheck, budget writers must focus on the goal line of June 30, 2011, when the budget clock resets.
Just two weeks ago, the Legislature approved the governor’s plan to bridge the $166 million gap between projected revenues and expenditures through June 30. The plan balanced the budget without any broad-based tax increases; instead, a lot of belt-tightening, including lay-offs and eliminating positions, achieved the savings needed.
The biennial budget faces even bigger problems. If revenue sources and planned expenditures remain as they now stand, a gap of some $800 million would emerge. As with the supplemental budget, the state’s problems stem from reduced revenue because of the receding state, national and global economies. With less money being earned, less taxes and fees are heading to Augusta.
Like the characters in the Samuel Beckett play “Waiting for Godot,” state officials are waiting for, talking about and planning on the arrival of a portion of the federal stimulus package. When it arrives, it will be well spent at the state level. But legislators must weigh its application judiciously, and they must remember that it is a one-time largesse, so adding or expanding programs is not a wise use of that money.
The challenge of closing the budget gap will be enormous. But with the challenge lies the opportunity to remake state government. Just as businesses and nonprofits reflect on their core mission in bad times, legislators have the chance to emerge from this recession with a state government that does fewer things, but does them effectively.
Gov. John Baldacci has been courageous — far more than he is given credit for being — in making tough choices in reducing the cost of state government. But rather than cling to his promise to not raise broad-based taxes and fees, in the final two years of his last term, the governor could boldly restructure how government is funded with an eye to ensuring it does not have to face such tough choices again. Such moves may mean he leaves the Blaine House with lower approval ratings, but Maine would be better for it.