Saturday, March 29, 2008

Parties split over budget recommendations

Late last week the Legislature’s Appropriations and Financial Affairs Committee wrapped up their work on a supplemental budget proposal to fill the current budget hole of nearly $200 million. Despite an effort to craft a bipartisan plan, Republicans and Democrats will present separate budget proposals to the full Legislature. Republicans and Democrats agreed to many of the measures presented by the Governor to cover the $190 million budget shortfall in the state’s $6.3 billion biennial budget. These measures include savings from reorganization within the Department of Health and Human Services, cuts to MaineCare services provided to childless adults and a reduction in state aid to local schools. The two parties also agreed to partially restore the Governor’s cuts to higher education, foster parent reimbursements, as well as domestic violence and sexual assault services. The majority Democrat plan includes the sweeping of multiple state accounts and the elimination of the Legislature’s Office of Program Evaluation and Government Accountability (OPEGA). Their plan also includes a move to allow the state treasurer to accelerate the sale of stocks that are being held by the state as unclaimed property, which would bring in approximately $9 million. Republicans rejected the idea as a risky one-time scheme along the lines of the failed unused gift card recapture from last year’s budget, a move that contributed to the current shortfall. The Republicans on the committee presented their own plan that called for legislators and legislative employees to contribute 10 percent to their own health insurance premiums, which are currently fully covered by the state. Their plan would also have accepted the Governor’s proposal to limit Medicaid spending on non-disabled, childless adults and mandate three unpaid government holidays. They also proposed a 10 percent reduction for payments to candidates who apply to run as publicly-funded candidates during the 2008 election cycle. Both committee reports are expected to be presented to the full Legislature this week. email from Representative Cotta 3/26/08

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