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By SUSAN M. COVER
Staff Writer 01/15/2008

Average, that is, when it comes to spending on teachers, special education and Medicaid.

Silkman, a former state planning director under Republican Gov. John McKernan, told an Augusta Civic Center audience Monday that if the state lowered its spending to the national average in five areas, it would reduce the tax burden on Maine citizens.

"There is only one way to become average," said Silkman, vice president of the Maine Public Spending Research Group, a nonprofit, nonpartisan corporation that analyzes tax and spending data. "You have to spend at the national average level."

If the state is serious about lowering the tax burden on Maine citizens to the middle third of states by 2015 -- a goal put forward by state officials -- it must make significant changes now, Silkman said.

Maine is ranked second in the country in state and local tax burden, as calculated by the Tax Foundation, a nonpartisan educational organization.

While acknowledging that Maine needs to lower its tax burden, Silkman's analysis leaves out how these types of cuts would affect the poor and the elderly who need the services, critics say.

"I felt his presentation was simplistic," said Rep. Sharon Treat, D-Hallowell. "You will have saved money by kicking people off Medicaid. But if they use the emergency room, everybody's insurance bills go up, and I think that's a problem."

Silkman laid out his plans to cut about $700 million from the state budget at a conference organized by the Maine Center for Economic Policy, a liberal think tank based in Augusta. He was part of a panel discussion on how Maine spending compares to neighboring states, and what Maine has done to control spending in recent years.

Silkman said Maine spends more per pupil that most other states, has too many teachers and puts 18.3 percent of students in special-education classes while the national average is 13.9 percent.

When it comes to health care, Maine enrolls more people in Medicaid, which is partly funded by federal money, and it offers a more generous benefit package.

Sen. Richard Nass, R-Acton, said when it comes to reducing the tax burden, serious cuts will have to be made. "We can't create the vigorous analysis to make decisions foolproof," he said. "We've never operated that way going up and we're not going to do it going down."

Treat said Silkman's presentation, which was similar to information presented by another member of the public spending group last fall, doesn't provide the solution as to why health care -- private and public -- is so expensive in Maine.

"I'm willing to look at all proposals, but I want to make sure we're making decisions based on thoughtful analysis," she said.

Rebecca Wyke, commissioner of the Department of Administrative and Financial Services, outlined where state money goes -- 80 percent to education and health care, 20 percent to everything else.

The largest single portion of the state budget -- 31 percent -- goes to K-12 education in the form of general purpose aid, while 21 percent goes to Medicaid, she said.

In recent years, the state has implemented or proposed various consolidation efforts that will save some money, she said. But moving forward, state lawmakers and others will need to make value judgments about what they want to continue to support. And judging from initial opposition to proposals for school district and jail consolidation, it will continue to be a difficult process, she said.

Lawmakers who are charged with overseeing state departments should keep the big picture in mind, Wyke said.

"I worry about the committees of jurisdiction who are advocates for the programs they oversee," she said.

Susan Cover -- 623-1056

scover@centralmaine.com

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