Senate, House work on budget solutions

AUGUSTA – An effort was made behind the scenes Monday to resolve a budget conflict between Senate and House majorities, while Gov. Angus King stood on the sidelines to see what would happen next.

“I’m just watching at this point,” the independent governor said. “I don’t know where it’s going from here.”

The two chambers have passed vastly different versions of a $5 billion tax-and-spending plan for the two years starting July 1.

The Senate version does without cigarette and restaurant taxes proposed by King. The House supports the tax hikes, but does not transfer as much money from Maine’s cash reserve known as the Rainy Day Fund.

Asked whether he would become involved in negotiations, King said he was waiting first to see the specifics of Senate amendments that are aimed at drawing support from House members.

Assistant Senate Democratic Leader Sharon Treat of Gardiner said senators were trying to narrow their differences with representatives and were preparing an amendment reflecting concessions they could agree to.

Treat declined to discuss details of the new amendment, adding that a new package would be reviewed by senators first.

“We’re still crunching numbers,” Treat said. “We would like for it to be an amendment the House could buy into.”

There was no letup, meanwhile, in King’s torrent of criticism against the Senate-approved version, which he labeled as “an abdication of fiscal responsibility.”

King is upset by a move to put the $50 million technology fund that’s associated with his school-computer initiative into the Rainy Day Fund.

The governor contended that the computer fund would no longer be viable as an endowment, meaning it would not be able to draw matching donations as designed. King also said he takes exception to tapping the cash reserve fund for continuing state programs rather than preserving it for a true fiscal emergency.

King said the Rainy Day Fund, which included $145 million as of Monday, would be whittled to about $80 million under the Senate’s plan, even with the technology fund money included.

“To do this kind of trick now when times are relatively good … is just inexcusable,” said King.

Senate President Michael Michaud defended the bipartisan Senate budget, which scuttled 26 cent-per-pack cigarette tax increases and an extension of restaurant taxes.

“At a time when most members of Congress of both parties are urging a national tax cut, raising taxes in Maine is the wrong medicine for a fragile economy,” Michaud, D-East Millinocket, said in a statement released during the weekend.