SINKING STATES

Not that it will console the state’s budget makers, but the latest reports from around the country show most other states with shortfalls similar to or worse than Maine’s. If there is good news in this, it is that the shortfalls are so widespread that lots of people will be thinking about ways to solve them other than raising taxes and the federal government cannot help noticing that what happens next in Washington could sting back home.

Arizona, with a $1 billion shortfall next year, began cutting welfare programs this week; Oklahoma faces a shortfall of $800 million having already appropriated $300 million of its reserve fund; Kansas is short by $310 million next year, California is expected to be behind by billions behind, as is New York. Worse, the National Conference of State Legislatures reports that 33 states have revenues that are still declining and that all states now have a collective $17.5 billion budget gap in the current year, which must be filled by June 30.

The falling stock market, rapidly rising Medicaid costs and tax cuts at the state and federal levels have reduced available revenue just as new costs, such as for security and school testing, demand more money. Maine’s next legislature and its new governor have an enormous challenge ahead. Here are some suggestions that could make it easier:

. Watch the other states closely. Almost every state has fiscal problems similar to Maine’s. There is no reason to limit potential solutions to those that come only from one administration when 49 others are also testing ideas to close their own budget gaps.

. Be more aggressive in seeking federal funding, especially in areas of national concern, such as homeland security, and health care, which Congress has failed to address adequately. Rep. John Baldacci made his experience in Washington an important part of his campaign for governor, but the number of states in line for increased federal support is growing and President Bush and the Republican Congress are talking about tax cuts again, leaving less for the states.

. No one likes to pay taxes, but Americans will cheerfully donate billions of dollars to state coffers if there is a long-shot chance that they will get rich in the process. In 1998, Americans lost $50 billion on legal wagering, according to the National Gambling Impact Study Commission, and they mostly called it recreation. A fair percent of those losses, worth billions in tax revenue, went to states and municipalities. The new administration, without trying to rush to a conclusion, should take a comprehensive look at how Maine can best profit from this form of tourism.

. On the same theory that some people will happily donate what they would only testily submit if required, the new administration should reach out to the expertise of private non profits in Maine to raise funds privately for state-funded programs such as public-land purchases and for education. Angus King began this with his technology initiative, but its potential is much larger. The key would be to look for programs that need one-time funding or reliable and consistent sources of funding through establishing endowments.

Maine’s high tax rate limits its opportunity simply to collect more taxes to get out of its shortfall. It will need good ideas and fiscal support from outside its normal sources, and it will need to look often beyond its borders for answers.