AUGUSTA – Gov. John Baldacci held a signing ceremony Thursday to mark the passage of a $5.8 billion two-year state budget package that he said would protect the Maine economy and the state’s neediest residents.

Praising Democratic allies in the Legislature who led committee deliberations on the measure and pushed it through the Senate and House of Representatives, Baldacci said implementation of the package would bring “considerable progress” toward property tax relief by providing local schools with an additional $250 million.

In largely party-line voting, the House and Senate forwarded the measure to the governor Wednesday night.

Democratic majorities enacted a reworked version of his original plan that will not increase broad-based taxes but will borrow $450 million.

Passage reflected the Democrats’ numerical edge over Republicans in both the Senate, where the final tally was 18-16, and in the House of Representatives, where the approval vote was 77-73.

“This is a great day in the Senate,” Senate President Beth Edmonds, D-Freeport, said in a statement after the last votes were cast.

Referring to earlier enactment of legislation on school funding and short-term state finances as well as Wednesday’s approval of anti-discrimination protections for homosexuals, she added: “We pass along a responsible budget that has earned the votes of the majority. It provides the education funding and tax relief Mainers voted for last June and carries forward the positive momentum in government we have begun with the approval of LD 1, the supplemental budget and equal rights.”

Joining Edmonds in hailing the budget enactment was House Speaker John Richardson, D-Brunswick.

“The people of Maine demanded we increase K-12 education funding and provide real property tax relief, and that we not raise taxes to pay for it, or make massive cuts to child care, prescription drugs for the elderly and other social programs. The use of revenue bonds allows us to protect our citizens and continue to invest in our state,” he said.

Across the political aisle, the Republican response Thursday was sharp.

“The Democrats had the numbers, and they got what they wanted,” said Republican Senate leader Paul Davis of Sangerville. “This is no different than a bully stealing a ball just because he can. In this case, the bully has stolen the checkbook and the credit card, and our children will be left to pay the bill.”

Davis added in his statement, “This budget was approved with absolute arrogance rooted in ignorance and capped off with a Democrat governor offering praise. It was disgusting.”

Maine Republican Party Chairman Randy Bumps denounced the new budget, which takes effect July 1, as shortsighted.

“Governor Baldacci has locked arms with State House Democrats to borrow against Maine’s future to pay today’s bills,” he said.