Gov. Baldacci pitches cuts totaling $11M

AUGUSTA – The Baldacci administration is offering an $11.3 million package of proposed spending cuts as a way to meet a target set in the new $6.3 billion biennial state budget, but it has stopped short of putting $30 million in potential reductions on the table as requested by the Appropriations Committee.

Gov. John Baldacci said Tuesday his proposal – worth about $1.2 million more than is required – would promote government streamlining and avoid new taxes.

“But we’re not finished yet,” he added.

Looking beyond the final steps of ensuring the new two-year budget is balanced, Baldacci said he remains interested in moving toward a state takeover of Maine’s county jail network as one part of an effort to provide local property tax relief.

Baldacci also said he would like to see income tax relief and stricter government spending controls.

Asked if he were still contemplating a special legislative session this year for a new initiative, Baldacci replied, “Oh yeah, we still are,” but also said action might not come until the next regular session of the Legislature begins in January.

The governor has said previously he would like to have general bipartisan agreement on how to proceed and has been meeting with Democratic and Republican House and Senate leaders.

Baldacci said Tuesday he would like to at least “begin the process of putting the jails under a single administration.”

Costs have been rising sharply within the county network and there have been discussions about several new construction projects.

“None of it makes any sense at all,” Baldacci said.

The spending reduction package put forth for consideration by the Appropriations Committee suggests an implementation of competitive bidding for therapeutic foster care to realize $2.1 million in savings and the increased placement of children in state custody into family settings for savings of $1.4 million more.

Also attached to the administration package is a proposed change by the state treasurer’s office that would consolidate cash pool investment earnings to benefit the General Fund by $1 million.

Another $1.6 million in savings would be netted from standardizing lottery agent commissions to put them more in line with other states, according to the administration proposal. The proposal also suggests a custodial staff reorganization that would in part eliminate one position and save $19,538 overall.

The whole package, if approved, would do away with 10 positions.

Legislative budget writers also have solicited suggestions from the public in their effort to squeeze out $10.1 million in new state government savings. By the end of last week, they had received several hundred proposals through a virtual suggestion box created by the Appropriations Committee staff.

The Appropriations Committee, which is expected to coordinate its efforts with a special Committee on Future Maine Prosperity that has been charged with developing a plan “to achieve sustainable prosperity” in the state, is scheduled to meet Thursday.

“During my time in office, we have streamlined state government, halted runaway growth in health and human services spending, revitalized the structure of public school administration and committed 800 million new dollars into [kindergarten through 12th grade] education. And we did it all without raising broad-based taxes,” Baldacci said in a prepared statement. “We will continue this work by looking at government spending at all levels.”