November 22, 2024
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Dems: Broad-based taxes not part of budget plan

AUGUSTA – Democratic lawmakers including House and Senate leaders said Friday they will not rely on sales or individual income tax increases to offset what they say are unacceptable human services cutbacks in Gov. John Baldacci’s $190 million supplemental budget package.

“Maine’s working middle-class families are suffering with the burden of escalating heating oil and gas prices, rising health care costs and a slowing economy. We share the governor’s commitment to no broad-based tax increases,” Senate President Beth Edmonds said.

At the same time, the Democrats said they want to jettison numerous provisions in the governor’s proposal that would affect domestic violence and substance abuse programs, higher education funding, home care for the elderly and services for the mentally ill.

“We cannot support the budget in its current form,” Edmonds, D-Freeport, said at a news conference in the State House Hall of Flags just outside the door to Baldacci’s office. “We will work with the governor” to craft revisions, she said in remarks that also credited Baldacci for hard work up to now.

But, added House Speaker Glenn Cummings, D-Portland, in his news conference presentation, “there are better choices to be made and there are other cuts that can be made.”

Without offering specifics, Cummings mentioned other areas of government without naming any, and what he suggested are special interest tax breaks.

The news conference came just hours after the Legislature’s Health and Human Services Committee all but wrapped up its review of Baldacci’s budget plan. A Democratic analysis of committee voting offered a lengthy list of items put forth by the governor but rejected by Democrats and Republicans on the panel.

“I think the key to the process is narrowing the differences between the Legislature and the executive,” said Baldacci budget chief Rebecca Wyke.

She credited the Health and Human Services Committee with making progress and said it would be up to the Appropriations Committee to put more or other options on the table.

“This is clearly the most significant area where there is concern,” Wyke said.

The majority party staff analysis had both caucuses rejecting cuts to domestic violence and sexual assault programs and also rejecting the elimination of funding for adult day services for non-MaineCare eligible people with mental retardation.

Also rejected were a reduction of homemaker services for the elderly, according to the staff report.

The analysis additionally said the Health and Human Services panel opposed a proposal to reduced payments to Maine pharmacists serving MaineCare clients.

“We will have to make difficult cuts to Health and Human Services but we can’t ask Maine families to shoulder the burden alone,” Cummings said.

Two Republicans on the committee, Sen. Kevin Raye of Perry and Robert Walker of Lincolnville, said, notwithstanding instances of Democratic and Republican agreement on some cuts, they still believe Maine’s health care system has been expanded too far and that structural change is needed.

The budget-writing Appropriations Committee went back into work session Friday afternoon, at one point meeting with Health and Human Services panelists to discuss its report.

Continued budget work sessions were expected through the weekend.

Administration officials said that to cover the $190 million gap, about $65 million is needed in fiscal year 2008, which ends June 30, and $125 million in fiscal year 2009.

If the new changes being proposed were enacted, General Fund spending would decrease by $60 million in 2009 from 2008 levels, the administration said.


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