AUGUSTA -- Statehouse budget talks begin again next week.

The Legislature's Appropriations Committee will start four weeks of public hearings on Monday by taking testimony on Gov. John Baldacci's $6.1 billion two-year budget.

Committee Chairwoman Rep. Emily Cain, D-Orono, said this budget will be tricky because of the uncertain national economy, the possibility of federal stimulus money and falling state revenues.

"There's a lot of moving parts," she said. "Part of our work in the biennial budget will be to exercise patience."

Baldacci proposed a mix of cuts, increased fees and federal Medicaid money to balance the budget, which is smaller than the current state spending plan. It's the first time in 30 years a two-year budget is smaller than its predecessor, according to the governor's office.

The budget proposes to eliminate 219 state positions, 139 of which are filled. It continues a hiring freeze, puts in place a retirement incentive, and would require state workers who make more than $50,000 a year to pay a portion of their health insurance costs.

The budget institutes a temporary 10 percent reduction in tax rebate programs and reduces the amount of money the state sends to cities and towns. It also raises fees in the Department of Marine Resources, Inland Fisheries and Wildlife and Department of Conservation.

For example, the budget proposes to increase the fee for a resident hunting license from $21 to $23.50 the first year, and to $24.50 the next year. Commercial fishing licenses would go from $41 to $48 for residents.

The budget also proposes to send more than 100 prisoners out of state to private providers and counts on $98.8 million in federal Medicaid money.

That placeholder in the budget meant fewer cuts to health and human services, a perennial hot topic at public hearings.

"I don't see huge busloads of people coming up for health and human services," said said Committee Chairman Sen. Bill Diamond, D-Windham.

The state could see millions more in federal stimulus money, but how much it will be and how it can be used is unclear, Diamond said.

"We're going to have to be very careful about the temptation of starting new programs and things that will not be funded in the future," he said. "We have to figure out a way of structuring that so we know where our money is going."

Susan Cover -- 620-7015

scover@centralmaine.com