Raising targeted taxes, such as the racino levy, is often easier than eliminating or shrinking programs. But, given Maine’s economic outlook, which calls for continuing diminished revenue, significant cuts are necessary.

The governor proposed a $1 increase in the state’s cigarette tax, which would bring in about $66 million a year. Democrats have scaled back the increase to 75 cents while broadening the definition of cigarettes. They have also proposed a 1 percent increase in a racino tax, worth $14 million over the biennium.

Both face substantial opposition, so lawmakers must turn to spending reductions. Because spending must be reduced to bring the state’s expenditures in line with its revenues, this biennial budget cannot be without painful decisions. A major debate will be over how widely the discomfort is dispersed.

The Appropriations Committee continues to work on a school consolidation plan and changes to the state’s health care system. These areas – both with vocal advocates – account for large shares of the state budget.

Reducing costs by tightening MaineCare eligibility and requiring co-payments, as Republicans have proposed, should be examined. Transitioning the system to a managed care model, as the governor has proposed, also will save money. Looking for other savings in the Department of Health and Human Services, with outside help if needed, also is necessary.

Although it won’t plug budget holes this year, better understanding of health care costs is essential. Maine spends billions of dollars, two-thirds of it federal, on health care but has only an approximate idea what it is buying. A bill by Sen. Phil Bartlett, D-Gorham, probes hospital costs and tries to limit the rate of increase.

On education, the administration has proposed cutting General Purpose Aid to Education by $17 million in 2008, with about $3.5 million of that going to consolidation efforts. This tells schools the state has concluded it cannot reach or sustain its target of 55 percent funding of GPA under the current infrastructure of local districts. If the state is to make 55 percent, it must be of a smaller total.

One way to lower the total is to lower Maine’s administration costs, which are substantially above the national average. Administrative consolidation, however, has run into the buzz saw of local control. The question is whether legislators can find substantial efficiencies in the face of pressure not to upset the status quo.

A buzz phrase this session has become “balancing the budget on the backs of” smokers, schools, gamblers, take your pick. As budget deliberations continue, it is clear it will take a lot of backs to bear Maine’s budget burdens. Augusta should help lighten the load by reducing spending.