Lawmakers report progress in breaking budget impasse

AUGUSTA – Legislative leaders swapped ideas for resolving a protracted state budget impasse Friday and afterward said prospects for a settlement had improved.

Based on accounts from participants in the closed-door session and others familiar with the talks, some of the key issues appeared to be proposals for transferring money from a school technology fund for other uses, eligibility standards for a business tax break on machinery and equipment, and further reductions in the state liquor store network.

“It was very positive,” said House Majority Leader Patrick Colwell, D-Gardiner.

“We’re this close,” he added, holding up two fingers a few inches apart.

House Minority Leader Joseph Bruno, R-Raymond, cautioned that nothing was final but predicted a tentative agreement could come early next week.

“I’m a lot more optimistic right now,” he said.

Senate Republican leaders did not make the meeting.

“We’re still talking and it’s feeling positive,” assistant Democratic Senate leader Sharon Treat said. “This is something we really would like to wrap up quickly.”

The leadership talks have been aimed primarily at compromising on what items ought to be included in a Part 1 budget package to fund ongoing state programs and services.

To reach agreement on such a package, lawmakers have been debating what other items might be put off for consideration in a Part 2 bill, which would serve as a vehicle for new initiatives and expansions of existing programs and services.

The new fiscal year and two-year budget cycle begin July 1 and to have the provisions of a Part 1 package in place by that time lawmakers would have to enact the legislation by super majorities of at least two-thirds in both the Senate and House of Representatives.

Measures enacted merely by simple majorities – that is, by less than two-thirds – would take effect 90 days after the Legislature adjourns.

“Part 2 is going to be a real dogfight,” Bruno predicted, with scant chance of super-majority agreements.

Bruno said House Republicans are bargaining hard to ensure that retail businesses remain eligible for the Business Equipment Tax Reimbursement program.

“Every caucus of the four caucuses” – House Republicans, House Democrats, Senate Democrats and Senate Republicans – “has the one program they’re fighting for,” he said.

Colwell acknowledged that

the debate on how to use $50

million previously set aside

for unspecified school tech-

nology upgrades remained “one of

the sticking points.”

Even as legislative leaders met Friday morning, members of the Education Committee continued to debate the issue. The Appropriations Committee, meanwhile, reviewed Part 2 spending proposals.

“The issues that are separating us have been reduced to really a handful,” Colwell said after the leadership meeting. “It was friendly but also very constructive.”