PROMPT VOTE ON CUTS PURSUED
BY SUSAN M. COVER
Staff Writer
Kennebec Journal & Morning Sentinel 12/21/2008

AUGUSTA -- When lawmakers return to the Statehouse on Jan. 7, 2009, they'll have less than a month to get public input, hold committee work sessions and vote on a plan to close a hole in the state budget that's more than $140 million.

The tight timeline is designed to get as much savings as possible from the proposals in the budget.

The state is already halfway through the fiscal year, and the governor is hoping quick action by lawmakers -- passage by Feb. 1, 2009 -- would eliminate the need for further cuts.

With that in mind, legislative committee members will likely begin consideration of the budget the week they return to Augusta, according to the House Speaker's Office. Public hearings will soon follow.

Senate Minority Leader Kevin Raye, R-Perry, said it's an "aggressive timetable," but not unreasonable. "I would concur with the governor that the sooner, the better," he said. "It remains to be seen if we can meet that timetable. I hope so."

The budget released last week makes a series of cuts in the current $3 billion budget which runs through June 30.

The budget, is subject of approval by two-thirds of the Legislature to take effect in time, proposes to:

* eliminate 94 state jobs, 40 of which are filled;

* close one of two housing units at the Charleston Correctional Facility;

* cut spending on the legislative budget by $1.6 million; and

* use $45 million from the state's reserve account.

Those measures are in addition to an $80 million curtailment put in place by Baldacci in November.

In that round, Baldacci reduced aid to local schools by $27 million, cut the Department of Health and Human Services budget by $31 million and cut higher education spending by $11.4 million.

One area that continues to concern Republicans is a proposal to reduce reimbursement rates to the state's 15 critical-access hospitals, from 117 percent of cost to 101 percent of cost.

"We're beginning to get feedback from people who are concerned about what that will mean," Raye said.

Also, Baldacci is proposing to change physician reimbursement rates so doctors in hospitals are reimbursed at the same rate as community doctors.

Another reason for lawmakers to expedite consideration of this budget is that it will be followed by the new two-year budget, for which a $838 million shortfall is projected.

Gov. John Baldacci is scheduled to release that budget no later than Jan. 9, 2009. He said last week that some of the provisions in the supplemental budget would help ease the burden of the two-year budget.

He also promised not to propose tax increases to fill the budget hole.

Maine is one of 43 states dealing with budget shortfalls. The chief economist of Standard & Poor's told legislators at a national conference earlier this month they may need to consider tax hikes to close their budget gaps, according to Stateline.org.

Already, governors in Idaho, Oregon and South Dakota have proposed gas tax increases, the Web site reported. The governor of New York is proposing a soft drink tax to close their budget gap, while the governor of Virginia is proposing a 30-cent cigarette tax hike, according to the New York Times and the Associated Press.

While Baldacci and Maine lawmakers are worried about the national recession and the state budget, it's not the largest gap in recent state history. In 2003, Baldacci and legislators closed a $1.2 billion gap in the state budget.

Lawmakers made quick work of that budget, passing it by late March of that year.

When it comes to the supplemental budget and the Feb. 1 deadline, Senate Majority Leader Phil Bartlett, D-Gorham, said he's optimistic.

"No budget ever ends up back on the governor's desk the way it came to us, but the Legislature has to recognize every day it delays, it exacerbates the cuts that are going to have to be made," he said.

Susan Cover -- 620-7015

scover@centralmaine.com

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