By SUSAN M. COVER
Staff Writer Wednesday, February 14, 2007

"To me, they have not done enough," said Nutting, a Leeds Democrat and farmer who's served 12 years in the Legislature.

So Nutting has introduced a measure requiring state government administration to be cut by $30 million.

The bill, which has yet to be released from the Legislature's bill writing office, reflects some of the frustration from citizens since the governor announced his proposal to reduce the number of school districts from 290 to 26. Some of those who spoke at last week's public hearing on the proposal said the state should lead by example and cut its spending first.

But Gov. John Baldacci's chief financial officer said the state has made cuts in recent years, and challenged Nutting's assertion that there's room to slash another $30 million in administrative costs.

Rebecca Wyke, commissioner of the state Department of Administrative and Financial Services, said the governor has cut $11 million in administrative costs and proposes more in the current budget.

"What we're asking schools to do is nothing we haven't done here ourselves," she said.

Last year, the state centralized information technology, human resources, payroll, accounting and financial services to save $11 million, Wyke said. The state also merged two departments to create the Department of Health and Human Services and is proposing to merge two others to eliminate another commissioner position, she said.

In testimony to support the governor's school administration consolidation proposal, Wyke listed other cuts in the current budget. One cabinet-level position is being cut, eight other high level state jobs are being cut to save $1.6 million, and 57 other state positions are being eliminated.

Wyke said the state budget, now proposed to be $6.4 billion for the next two years, allocates 80 percent of its money to education and health care. The remaining 20 percent supports public safety, corrections, agriculture, conservation and all other state departments.

Those areas have faced cuts in recent years to support the state's commitment to K-12 education and increasing health care needs, she said.

"If we look at state government, we've basically been starving the 20 percent of the budget that's not health or education," she said.

Nutting's bill calls for a commission of business people, legislators and others to meet this summer to find ways to cut state government administration. The panel would then bring its recommendations forward for the 2008 legislative session.

Nutting also said he wants the state Office of Program Evaluation and Government Accountability -- which studies the effectiveness of state programs -- to work with the commission.

Alan Caron, president of GrowSmart Maine, said a study it commissioned from Brookings Institution in Washington, D.C., shows there's $60 million to $100 million that can be cut from state government, mostly in administrative duplication.

The report found that, while towns tend to be fairly frugal, schools and the state need to find ways to save money.

"The governor has teed up the school conversation," Caron said, "now we need to have a conversation about state government itself."

Part of Nutting's concern stems from his skepticism about the July 2008 deadline in Baldacci's school plan. He said other states, such as Vermont and New York, took two years to implement similar types of consolidation. But lawmakers would need to come up with a plan for administrative cuts by mid-March to be part of the state's two-year budget.

"I'm going to vote for school administrative savings," Nutting said. "But I'm not going to do it in a five-week period."

Wyke said she'd be happy to further discuss the cost of state government. But she feels any additional cuts would require a reduction in services.

"I'd be surprised if you could find $30 million in savings without severely impacting programs," she said.

Susan Cover -- 623-1056

scover@centralmaine.com