Baldacci wary of budget increase

AUGUSTA – Gov. John Baldacci said weekend efforts by legislative negotiators to ease some of the more unpopular cutbacks in his supplemental budget package raised concerns, but he expressed hope that a new round of talks Monday could lead to a bipartisan compromise.

“We’re concerned that there’s a little more spending in the package,” Baldacci said in a brief, impromptu interview outside his office at midday. “We want to keep our focus on balancing the budget.”

The governor’s Democratic allies have taken the lead in pushing for a restoration of social service program curbs originally put forth by the administration.

Republicans on the Appropriations Committee went along, but conditioned their final support on matching moves to maintain some level of current services with offsetting savings elsewhere that they would deem acceptable.

Democratic lawmakers indicated that they were looking at an array of new revenue measures, including a $10.5 million transfer of funds from three agencies – the Office of Consumer Credit Regulation, the Bureau of Insurance and the Office of Securities – within the Department of Professional and Financial Regulation to help bridge the gap.

But even before seeing details, Republican lawmakers balked at suggestions of higher corporate filing and real estate fees.

“We want them to continue to work together,” Baldacci said Monday.

The governor said he had been in touch with both sides and expected to confer with Democrats and Republicans again in hopes of fostering an agreement by Tuesday.

In addition to looking to reach a conclusion on how to cover a $128 million Medicaid shortfall for Fiscal Year 2005, which begins July 1, Baldacci staff chief Jane Lincoln suggested the extended budget deliberations had the effect of stalling action on other fronts.

One major item still idling is the multisided effort to produce a tax relief measure that would aid local communities and property taxpayers immediately and serve to head off more sweeping reforms called for in two pending referendum questions.

Taking into account other provisions, such as the hiring of corrections personnel and tax revenue agents, the governor’s 2005 package originally was pegged at $160 million.

Administration officials have been submitting changes and were still revising portions of it over the weekend.

The governor had scaled back $21.5 million in proposed savings from eliminated services, limitations on services, rate reductions and other MaineCare program curbs to about $14.3 million.

The Appropriations Committee, with the GOP caveat, had lined up behind less than half the administration’s original target.

A $5.3 billion budget package that set in place a blueprint for financing state government operations through June 2005 was overwhelmingly approved by lawmakers in March 2003.

In January, over fierce Republican opposition, Baldacci and his Democratic legislative allies pushed through a plan for offsetting a $109 million Medicaid shortfall for the current fiscal year, which ends June 30.