AUGUSTA, Maine — Despite newfound state revenues that will ease the impact of cuts, Gov. John Baldacci says Maine still faces “a very difficult budget.”

In his weekend radio address, Baldacci said many hard decisions must still be made even though the revenue picture is looking somewhat brighter.

This week, Baldacci outlined his budget rewrite in light of $50 million in bolstered revenue projections and $28 million in federal Medicaid funding. That lowers the budget shortfall to $360 million.

To balance the books, Baldacci is proposing cuts but also a number of savings initiatives and cuts.

In the Republican response, House Minority Leader Josh Tardy of Newport said that given the state’s precarious financial condition, this is a bad time for Democratic leaders to propose a $100 million jobs bond issue.