Maine Looks At Proposed Changes To 2010-11 Budget
Governor John E. Baldacci today presented his priorities for restoring $78.7 million in cuts original proposed to close a budget gap created by the global recession and declining State revenues.
In December, the Governor presented a plan to close a gap of $438 million in the current two-year State budget. Modestly improving revenues and increased federal support make it possible to mitigate the impact of some of the proposals.
On March 1, the Revenue Forecasting Committee upgraded Maine’s two-year revenue picture by $50.9 million. In addition, the U.S. Department of Health and Human Services has made an administrative change in the federal Medicaid program that increased resources to Maine by $27.8 million.
“From the beginning, I have been committed to presenting a fiscally responsible plan to balance the State budget,” Governor Baldacci said. “The slight improvement in the economy and the increased assistance from the federal government allow us to address legitimate concerns in human services and education while also making investments in Maine’s long-term financial health.”
The Governor’s revisions:
- Restores $37 million in health and human services, including increased support for nursing homes, assisted living facilities, disability services, mental health crisis intervention and home-based services. It also proposes alternatives reductions of $13 million and new initiatives of $5.3 million.
- Restores $20 million for K-12 education for FY 2011.
- Restores $8 million for higher education for FY 2011 ($6 million for the University of Maine System; $1.7 million for Maine Community College System; and $267,139 for Maine Maritime Academy).
- Restores $6 million for municipal revenue sharing for FY 2010.
- Makes a $3.5 million payment for retiree health.
- Eliminates an $8.1 million payroll delay.
- Includes $1.75 million to fully fund the State’s obligation for disaster assistance.
- Includes $2.6 million to pay for a job creation bond package.
“I have placed a high priority on finding a bipartisan and cooperative path through these troubled economic times,” Governor Baldacci said. “With these proposals, I believe we can give school districts and municipalities time to adjust to declining revenues, protect our core values and safeguard the State’s economy.”
During a press conference announcing the details of the change package, Governor Baldacci reiterated his commitment to balancing the State budget without raising taxes.
“There are still many hard decisions that must be made in this budget,” Governor Baldacci said. “But during this difficult economy, I will not support higher taxes. Maine families and businesses cannot afford a greater burden.”
Governor Baldacci also talked about the need to continue to make structural changes to better match spending with available resources in the future.
“I am also including a number of savings initiatives in this package that will reduce costs going forward, particularly in the Department of Health and Human Services,” Governor Baldacci said.
Those initiatives include increased efficiencies at Dorothea Dix Psychiatric Center, standardized rates and reduced per member/per month costs in MaineCare.
In addition to the restorations, the proposal also includes funding for a targeted investment package, which will focus on job creation.
“We have an opportunity to put people back to work, to create jobs and grow our economy,” Governor Baldacci said.
Details of the Governor’s investment proposal will be released next week.
For more information about the Governor’s change package, visit http://www.maine.gov/budget/budgetinfo/2010supplemental.htm
Topics: 2010, assisted living facilities, bipartisan, budget gap, business, declining state revenues, disability services, disaster assistance, Dorothea Dix Psychiatric Center, economic recovery, Economy, education, employment, global recession, Governor John E. Baldacci, health care, Health Care, higher education, home-based services, human services, job creation bond package, jobs, K-12 education, Maine, Maine Community College System, Maine Maritime Academy, MaineCare, Medicaid, mental health crisis intervention, monitor, municipal revenue sharing, news, nursing homes, retiree health, Revenue Forecasting Committee, schools, taxes, taxpayers, U.S., U.S. Department of Health and Human Services, United States
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