AUGUSTA – Gov. John E. Baldacci outlined his stripped-down, “no new taxes” budget to the Maine Legislature on Tuesday in an attempt to prepare lawmakers for one of the roughest fiscal periods in a decade.
The governor met separately for about a half-hour with each of the four caucuses – House Republicans, House Democrats, Senate Republicans and Senate Democrats.
“We can’t afford to raise taxes now given our situation,” Baldacci told House Democrats. “There’ll be no smoke and mirrors and no pushes. If you’re going to try and keep spending the way it is, then you’re going to run into resistance from me because it’s got to change.”
It was tough medicine for some House Democrats who had hoped their Democratic governor would at least entertain some tax increases to maintain the state’s social service safety net for its poorest citizens. Senate Democratic leaders said they understood Baldacci’s goals, but would need to see the details of the two-year budget that is expected to come in around $5 billion and without a projected $1.1 billion gap between anticipated revenues and projected state spending.
“It really comes down to what the public wants,” said Senate Majority Leader Sharon A. Treat, D-Farmingdale. “I think [the budget] will be an interesting educational process and we may still wind up with no new taxes. The governor is committed to that, but I think it is still an educational process for the public to find out what that means.”
Details on the Baldacci plan will be presented to the Legislature at 7 p.m. Wednesday in the governor’s budget address, which will be aired live by the Maine Public Broadcasting Corp. The economic speech is not a State of the State address, since the governor already outlined many of his goals last month in his inaugural address.
While Baldacci did not reveal specific aspects of the budget during his talks with lawmakers Tuesday, he made it clear there would be delays in adopting federal tax conformity measures at the state level. The proposal also will include significant cuts in benefits available under many state programs and a reduction in the state employee work force. In one instance, Baldacci told Senate Republicans the new budget may mean that fees for such routine state services as criminal background checks may be tripled to bring Maine more in line with other states.
“I can’t subsidize those services while I’m laying people off,” he said. “We’re going to go through a process where people are going to be laid off.”
Much of Baldacci’s message was keyed to many of the points he made during his campaign and reiterated during his inaugural speech. He frequently repeated phrases such as the need to “look outside the box” for solutions, a resignation that “sacrifices will be made” and the need to “go through the process” of finding any possible state savings. When the governor delivered his pledge of no new taxes to House Republicans, they responded with a standing ovation.
Later, Rep. David Trahan of Waldoboro, one of the GOP caucus’ more conservative members, rose to address Baldacci with a bewildered look on his face.
“I’ve been listening and I keep saying to myself, ‘I agree with you, I agree with you,'” he said in disbelief.
“Well, don’t stop,” Baldacci replied.
“The governor has said publicly that it will take two years of pain to get Maine back on the right track again,” said House Republican leader Joe Bruno of Raymond. “We understand that as a caucus. This governor has committed – he’s put his feet in cement on this tax pledge. The last governor did not.”
While some Republican senators were more restrained in their enthusiasm for Baldacci’s message, others shared what was described as a “refreshing” approach by the governor in dealing with the lawmakers.
“He’s talking our language,” said Senate GOP leader Paul Davis of Sangerville. “That’s the best I can say. As long as he keeps talking like that, how can I not support him?”
Some House Democrats expressed disappointment in the governor’s resoluteness to hold the line on taxes, but House Speaker Patrick Colwell of Gardiner said most of his caucus understood why it was important to get behind the administration at this difficult economic time.
“I think it’s just the extreme left wing of my caucus that’s interested in raising taxes,” Colwell said. “The overwhelming majority of my caucus has been in the business of cutting taxes during the last six years and we’re proud of that.”
State Rep. Matthew Dunlap, D-Old Town, was impressed with Baldacci’s presentation and said his desire to promote government restructuring at the state, county and municipal levels could go well beyond savings by actually delivering improved services to Mainers.
“The governor sees an opportunity here for some real restructuring to not only save some money, but also to ensure a more efficient delivery of those services,” Dunlap said.
The governor’s first close encounter on policy with the 121st Legislature was by most accounts a positive one. At times, Baldacci and his security guard stood outside caucus offices for as long as 20 minutes waiting for lawmakers to arrive for the briefing. If killing time for the Legislature can promote a new sense of bipartisanship in State House, Baldacci said he is willing to play the waiting game whenever necessary.
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