AUGUSTA, Maine — In a unanimous vote Monday evening, members of the Legislature’s budget-writing committee approved a plan to close an estimated $310 million revenue gap by cutting spending across state government but without resorting to new taxes.
The package of budget revisions, which now will be considered by the full Legislature, includes an estimated $23 million in cuts to health and human services programs and $10 million in cuts to kindergarten-through-grade-12 education next fiscal year.
Maine’s public colleges and universities would also see their state subsidies decline by $8 million, while taxpayer dollars reallocated to towns and cities through the state’s “revenue sharing” program would drop by $16 million.
But lawmakers pointed out that the picture was much bleaker — and the cuts much larger — when the Appropriations and Financial Affairs Committee began working on the budget two months ago.
Maine’s estimated budget hole shrank from $438 million to $310 million thanks to an earlier-than-expected rebound in tax revenues and an infusion of $85 million in additional federal money. As a result, lawmakers worked with the Baldacci administration to restore $26 million in funding for kindergarten-through-grade-12 schools next fiscal year and hope to end the biennium with $7 million in the state’s now-depleted rainy day fund.
“Considering the environment we faced and the challenges we faced when we began, I think this is a very significant accomplishment,” said Sen. Kevin Raye, a Perry Republican and the Senate minority leader. “We have come a long way.”
While the additional money helped blunt some of the financial pain, Mainers will feel the pinch nonetheless.
School districts across the state are preparing plans for teacher layoffs or program eliminations. Some towns will likely be forced to raise property taxes to cover the loss of state aid. And social service agencies are warning that the cuts — although less than originally proposed — will still affect programs serving the elderly and disabled.
“The budget is still full of very difficult choices and very difficult cuts,” said Rep. Emily Cain, an Orono Democrat and co-chair of the Appropriations Committee.
Lawmakers resisted calls from some groups for a temporary increase in the sales tax or a $1-per-pack tax hike on cigarettes to help the state minimize cuts to critical programs offering a safety net to vulnerable residents. Gov. John Baldacci had vowed to veto any tax increase.
But the committee did vote to raise revenues in other ways.
Lawmakers agreed to a proposal for Maine to join the more than 30 other states participating in the Mega Millions lottery game, which is expected to generate about $1.5 million in the first year.
After working all day Sunday and until after 2 a.m. Monday, committee members returned Monday afternoon to the task of making final adjustments to the budget. In some cases, the committee was able to add money to programs.
For example, the committee voted to earmark more than $180,000 to allow district attorneys and their assistants to work on at least five of the 10 government shutdown days slated for the fiscal year that begins July 1.
Lawmakers also dedicated additional money to the Maine State Police Computer Crimes Unit to hire an additional detective. The understaffed unit has a backlog of several hundred cases, many involving child pornography.
“This allows one additional person to go out and do that job to reduce the backlog and get these people off of the streets,” said Sen. Bill Diamond, a Windham Democrat and committee co-chair.
Cain said the committee’s early, bipartisan work to identify the most painful cuts — such as those to programs supporting the elderly or disabled — came in handy when the budget picture changed for the positive.
“We were able to quickly agree on the use of those funds,” Cain said.
One item missing from the committee’s revised budget plan, however, is the $2.6 million “debt service” associated with the Baldacci administration’s $79 million bond proposal. Lawmakers deposited that money into an unallocated pot of roughly $6.5 million in order to remove partisan politics from the budget. Republican leaders have questioned whether it is appropriate to seek voter approval to take on additional debt during a recession. If the unallocated pot of money is not used for anything, it would be added to the Rainy Day Fund.
The committee is expected to begin considering bond proposals next week.