Wednesday, April 9, 2008

Supplemental Budget Enacted

The Maine Legislature has enacted a supplemental budget to close the $190 million hole in the state's $6.3 billion biennial budget. The supplemental budget was passed 84-55 in the House and 18-17 in the Senate. The vote was mostly along party lines with majority Democrats voting in favor of adoption. Both Republicans and Democrats agreed to a majority of the cuts contained in the supplemental budget. This included over $65 million in spending reductions in the Department of Health and Human Services. The two parties also agreed to partially restore some of the Governor's cuts to higher education, foster parent reimbursements, home care for the elderly, as well as domestic violence and sexual assault services. Opponents in the House voiced concern over the final budget package because it contained a tax change on struggling businesses and allowed the state treasurer to accelerate the sale of stocks that are being held by the state as unclaimed property, a plan which would bring in approximately $9 million. The majority budget also included a controversial reduction in the staff of the Legislature's government "watch-dog" agency, the Office of Program Evaluation and Government Accountability (OPEGA). Republicans presented their own proposal that called for legislators and legislative employees to contribute 10 percent to their own health insurance premiums, which are currently fully covered by taxpayers. 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. A number of amendments to the majority budget were presented, which were all voted down. These amendments included one that would reduce out-of-state legislative travel by $250,000 in order to put more money towards home-based health care. Others would have created a government efficiency commission to save $75 million in order to reduce the income tax, fully funded OPEGA and put more money towards road repairs. from an email from Representative Cotta April 7, 2008

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