State budget talks are extended

AUGUSTA – After two nights of inconclusive bargaining, state budget negotiators went back to work Wednesday as Democratic and Republican House and Senate leaders met twice with more talks planned.

One matter still under discussion was Gov. John Baldacci’s proposal for a statutory cap that would link spending growth to personal income growth.

Baldacci’s latest budget-balancing measure was designed to cover a $48 million revenue gap diagnosed for the two-year cycle that begins July 1.

The administration, as well as legislative leaders, had been hoping to have a budget bill wrapped up quickly to speed the final adjournment of this year’s regular session. But on Wednesday, the House and Senate were recessed until next Monday.

The extended recess frees up more uninterrupted time for the budget negotiators and their staff, as well as groups working on health care and tax reform.

In addition to the budget bill, the Appropriations Committee is still expected to take up a variety of borrowing proposals that could be forwarded to state voters in November. Already approved by the Legislature, a $60 million bond package with a heavy focus on biomedical and other research initiatives goes before state voters on Tuesday. Baldacci, who has been talking up the benefits of the bond package, is scheduled to speak out for it again on Friday at an early morning news conference at Husson College in Bangor.

The appropriations panel convened early Wednesday evening to discuss at least some of several dozen amendments to the Baldacci budget-balancing measure.

Another issue said to be preoccupying some on the panel was funding for a new legislative agency to evaluate government operations. Maine lawmakers created a Legislative Office of Program Evaluation and Government Accountability last year.