AUGUSTA -- Gov. John Baldacci on Wednesday signed an executive order to freeze hiring and to limit overtime, travel and other expenses, according to a statement from his office.

Baldacci, a Democrat, has signed similar orders since 2003. Wednesday was the beginning of the state's fiscal year, when its new, $5.8 billion, two-year budget went into effect.

"My administration has been committed to restructuring government and reducing administration at all levels in all areas," Baldacci said in a statement. "This order is just one tool to keep in place critical measures to ensure Maine state government operates efficiently and effectively."

The order includes these directives:

* a hiring freeze for all positions that are vacant or become vacant, regardless of funding source;

* unscheduled overtime won't be allowed, unless it's an emergency;

* travel "must be reduced to the absolute minimum necessary"; and

* contracts, grants and purchases must be reviewed "and reduced to the absolute minimum necessary."

The order says the freeze is necessary because state and "national economies are experiencing significant economic challenges due to the national recession."

Susan Cover -- 620-7015

scover@centralmaine.com