It’s crunch time in our state capitol. Time to put a new state budget to bed. Real progress on Maine fiscal and tax policy requires wrenching choices about traditional government structures and government service priorities.
The governor’s proposed budget cut costs through real restructuring of government. The budget proposal saved $36 million by consolidating the excess administration of our school systems and more than $130 million by streamlining health administration.
In addition, the budget proposal eliminated agency heads and combined offices and bureaus to create efficiencies and reduce costs. The budget eliminated 57 state positions for a total work force reduction of more than 600 positions during the governor’s time in office.
The governor’s budget submission made cuts and raised revenue to support the final installment of a new $800 million for K-12 education required to bring the state’s share to 55 percent. It made cuts and raised revenue both to restructure government and invest in Maine’s economy.
State budget deliberations demonstrate how hard it is to change government. Still, the governor’s budget proposed actual, if difficult, structural change that reduces government spending now.
The governor’s budget proposal addressed government realities in Maine.
Picture the state budget as a Maine blueberry pie. Looks pretty good, doesn’t it? Now, take half of the pie and give it to educators, school administrators and students.
Take a third of the pie and give it to health administrators, lower income Mainers needing health care and vulnerable citizens needing services.
Divide the remaining slice, just one-fifth of the pie, among public safety and corrections, environmental protection and preservation, economic development, tax relief and the entire legislative and judicial branches of government.
Those servings represent the state budget distribution. That’s 80 percent of the pie consumed by education and health and human services.
The struggle over school administrative savings has received a lot of attention. State government, too, must continue to evolve, and so must our counties and municipalities if we are to curb inefficient government spending while making needed investments.
Nearly half of the revenue raised at the state level is passed back to local governments to supplement their services. Yet rising property taxes continue to plague our residents. More state help to support an inefficient local government structure is not the answer. It’s just more taxes.
At the end of the day, the state budget under consideration must make structural change in government. It must provide needed services effectively. It must use revenues efficiently. It must invest where needed for prosperity.
But needed change doesn’t end with this budget. Further savings can be found. We’re all for government restructuring, but for change to be effective the debate must be about more than trimming fat.
Any such effort must be organized to answer these questions: What services do Maine people want to support? Does our system of government – across all levels – make sense in this day and age? Are we being realistic about the connection among the services we want, the structures we want to deliver them and the taxes we want to pay?
There is a bottom line we can’t avoid about government cuts, local control, tax relief and investments in Maine: We must set priorities and make structural changes at all levels of government.
We must reduce the overhead of Maine’s 800 governmental units by setting policy and program priorities. Or we must bear the burden of supporting them all through taxes.
The governor’s budget proposed action now. That’s what we still need when the final budget is passed.
The governor’s administration will continue to bring forward ideas that restructure government and reduce the burden on Maine taxpayers. But let’s not pretend these are simple, easy choices. If they were, Maine people would already have made them.
All Maine citizens, both in and outside of government, must join Gov. Baldacci to make changes today, and to continue on a path of real change. Only real change will lead Maine into a prosperous, sustainable future.
Rebecca Wyke is commissioner of Administrative and Financial Services. Martha Freeman is director of the Maine State Planning Office.
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