Demonstration today against Baldacci cuts

AUGUSTA – Much of the first of two days of public hearings on Gov. John Baldacci’s latest $95 million budget-balancing package was largely a pro forma affair with few new details or questions.

But organizers said a large demonstration was planned for day two on Wednesday when the Appropriations Committee expects to take testimony on proposed cutbacks in human services

A coalition of organizations calling itself Maine Can Do Better plans to stage a protest in the Hall of Flags on Wednesday.

Organizers say they believe Mainers “are tired of paying the price for shortsighted cuts in community investment.”

Baldacci spelled out the cuts last week when he revealed how he would make up for the second $95 million reduction in revenue estimates in three months.

Baldacci’s proposal calls for no tax increases or money from the state’s Rainy Day Fund.

Tuesday’s schedule focused on proposed cuts in state aid to local schools, the University of Maine System, the Maine Community College System and Maine Maritime Academy.

In advance of the hearing, Margaret Weston, chairwoman of the University of Maine System board of trustees, said in a statement that the proposed $7.1 million cut in the university system’s appropriation “would be counterproductive to the state’s economic interests and condition.”

Tuesday’s hearing also featured testimony from some state workers whose jobs are on the line.

Chris Short, the fish culture supervisor of the Phillips State Fish Hatchery, warned the budget panel that “to close this facility now would constitute a breach of public trust for the private contributions already invested in securing its future. This action could severely jeopardize future private investment.”

Lawmakers have been meeting already to discuss how to proceed once this week’s hearings conclude.

Members of the Legislature’s Democratic majorities were provided analysis asserting that state aid to local schools, and not health care, has been the leading budget driver in recent years.

Between fiscal 2006 and fiscal 2009, the analysis said, state Medicaid funding would have increased by 5.7 percent while state aid for education increased by 32.8 percent.

Newly proposed cuts enumerated in the analysis include $6.9 million to be realized by eliminating a pharmacy benefit for 18,500 people making less than $10,400 and $8.1 million to be saved through reduced payments to hospitals to reflect tightened eligibility for state aid.

Also listed was a $2.1 million cut for the state court system.

On Tuesday, the Maine State Chamber of Commerce issued a statement lining up with Baldacci.

“We believe Governor Baldacci’s solution to addressing this problem. Cutting spending and not raising taxes, is the right solution and we wholeheartedly support it,” said Chamber President Dana Connors.

“Some have suggested that the state instead increase taxes or address the problem through a combination of spending cuts and tax increases. Given the genesis of our problem, an ailing economy, we submit that this is precisely the wrong time to increase taxes,” Connors said.