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New Federal Money Helps Fill Maine’s Budget Gap
Thanks to the U.S. Senate passing legislation that will extend enhanced federal medicaid assistance to the states, Governor Baldacci has outlined about $94 million in proposed budget restorations.
Maine’s U.S. Senators Olympia Snowe and Susan Collins, as well as U.S. Representatives Michael Michaud and Chellie Pingree all voted in favor of this federal action.
According to a press release from the Governor’s office… he proposes to:
- Fill the $35 million placeholder proposed in the current budget for increased federal Medicaid support;
- Restore $33.6 million in proposed reductions in health and human services, including proposed cuts to the Drugs for the Elderly program, hospitals, nursing homes, service providers and crisis services;
- Restore $5.6 million to a proposed reduction in the Circuit Breaker Program, which benefits 13,000 low- and middle-income homeowners;
- Restore $5 million to municipal revenue sharing in fiscal year 2011;
- Restore $5 million to General Purpose Aid to Education;
- Restore $1.1 million for schools who voted to support the State’s education reform law but whose partner districts rejected administrative consolidation;
- Restore $580,000 for adult education;
- Provide $470,000 in debt service for the University of Maine System to bring facilities at the University of Maine into ADA compliance and remove asbestos and mercury contamination;
- Provide $200,000 for the Maine Uncontrolled Hazardous Sites Cleanup; Restore $80,000 to the Maine Judiciary.
Read his full Press Release by clicking here.
Times Record Says “Maine Can Do Better”
Great editorial in the Times Record this Thursday:
“Yes, it’s good news that a $50 million improvement in state revenues and a $28 million Medicaid windfall allowed Gov. John Baldacci a week ago to lower the state’s budget shortfall by some $78 million.
And on Wednesday, the state budget picture brightened even more with the announcement that additional federal funds would come to Maine under the just-approved Jobs Bill, bringing the Medicaid windfall up to $46 million.
Those revenue boosts have enabled Baldacci to restore millions in funding for health and human services, including increased support for nursing homes, assisted living facilities, disability services, mental health crisis intervention and home-based services. The governor also partially restored funding for public schools and higher education — with $20 million being provided for K-12 education and $8 million for higher education in FY 2011. He also added $6 million for municipal revenue sharing for FY 2010.”
See the full story at the Times Record.
Maine Can Do Better Reacts to Proposed Supplemental Budget Changes
On March 3rd, Governor Baldacci announced changes to his proposed supplemental budget. While many news reports focused on the restoration of cuts, few focused on the $360 million cuts that still remain. After deep analysis of the supplemental budget changes, it’s clear to Maine Can Do Better that, despite the positive changes, filling the remaining budget gap with cuts alone is not the right answer for Maine. Here’s a response from Ben Dudley, spokesperson for Maine Can Do Better’s to proposed changes to the supplemental budget package….
“We’re heartened by the Governor’s proposed changes to the supplemental budget. They represent substantial restorations to programs vital to the public interest, such as funding for nursing homes, assisted living facilities, disability services, mental health crisis intervention and home-based services, k-12 and higher education, and municipal revenue sharing. Clearly Governor Baldacci heard the concerns of Maine citizens and we thank him for his efforts.
“Despite this progress, there’s still major hole in the state budget: $360 million. That’s equivalent to annual state & federal funding for the Maine Departments of Agriculture, Conservation, Economic Development, Marine Resources, The Secretary of State, The Community College System, The Maine Human Rights Commission, and the state court system combined. To make up that sizable shortfall, this budget still proposes a host of harmful cuts:
- $1.8 million cut to the Low Cost Drugs for the Elderly and Disabled program;
- $45 million cut (including lost matching funds) to MaineCare, cutting access to health care, mental health services and programs for people with developmental disabilities.
- $3.7 million cut non-MaineCare mental health services;
- $500 thousand in cuts for community support programs, including family planning, domestic violence, homeless services and child abuse prevention programs.
- $82 million cut to municipalities in revenue sharing and education funding;
- $5.6 million cut to property tax circuit breaker program;
“The remaining cuts will have a real impact on Maine families and Maine’s economy as we work to rebound from this recession. Defunding programs that keep people healthy, prepare Maine’s workforce, support local communities, and preserve jobs in a difficult economy will only make things harder in the long run. Preventing problems from getting worse, and more costly, down the line will give Maine a leg up as we work toward economic recovery.
“Will Rogers said it best, ‘When you find yourself in a hole, quit digging.’ There are other options to resolving our budget problems. Instead of relying on cuts alone to close the gap, we urge state legislators and the Governor to take another positive step toward greater fiscal responsibility, one that fully considers the costs and benefits of a mix of revenues and spending cuts. It’s the only way to ensure a budget that best positions Maine for economic recovery and future prosperity.”
New Report Reveals a Need for Balanced Budget Solutions
Portland, Maine — The Maine Can Do Better Coalition, a coalition of more than 150 organizations from across Maine, praised the annual report by the Maine Economic Growth Council (MEGC), saying it should serve as a wake up call for Maine legislators.
In their report, “Measures of Growth in Focus”, the MEGC echoed Maine Can Do Better’s call for policymakers to look beyond Maine’s immediate challenges, stating “it is precisely during [economic] downturns that states, just like companies, must position themselves for growth when the economy finally turns around.” The report continues, “We need to continue investment in our workforce and in our infrastructure. We need to support investments that will grow the ‘new economy’ in Maine”.
In contrast, the current supplemental budget proposal would weaken the state’s ability to address two of the three measures flagged by MEGC as needing attention: higher degree attainment and the cost of health care. The budget proposal includes dramatic cuts to health care and education (both k-12 and higher education) which, if adopted by the Legislature, threaten to worsen these key economic indicators.
In keeping with the MEGC recommendations, Maine Can Do Better is advocating a more balanced approach to the state fiscal crisis to ensure a speedier return to economic prosperity in Maine.
“Two of the hardest hit sectors in the budget are education and health care,” says Sara Gagne-Holmes, Executive Director of Maine Equal Justice Partners, “yet, those are the sectors that have been flagged as needing the most attention in order for Maine’s economy to thrive. Hopefully our elected leaders will see this as evidence that Maine cannot reach its full potential if we limit the budget conversation to cuts alone.”
“We need to start connecting the dots,” says Ben Dudley, spokesperson for the Maine Can Do Better Coalition, “Continually cutting health and education funding increases long term costs by diminishing the ability of Maine’s workforce to compete in the new economy. This is why the state budget writers must consider the relative costs and benefits of all available balancing options: program cuts, operational efficiencies, and responsible enhanced revenues.”
Click here to read the full report: http://mdf.org/publications/Measures-of-Growth-in-Focus-2010/214/
Proposed state budget would likely cause loss of 7000-10,000 jobs
New analysis reveals that the Governor’s proposed supplemental budget would put thousands of Maine residents in the unemployment line.
Using nationally recognized economic modeling, The Maine Center for Economic Policy (MECEP) estimates that between 7,000 and 10,000 jobs would be eliminated if the legislature were to pass the Governor’s proposal. These job losses would be felt most acutely in employment related to long-term care in nursing homes, home health care, and care for people with mental illness and developmental disabilities. Large job losses would also occur in k-12 and higher education. See full story at the Maine Center for Economic Policy.
Report: State Budget Cuts Could Cost Up to 10,000 Jobs
Governor Baldacci’s proposed state budget will cost Maine as many as 10,000 jobs, according to an analysis by a progressive think-tank based in Augusta. The Maine Center for Economic Policy says the report shows that the state simply can’t cut its way out of the recession. But anti-tax activists say the report leaves out the other side of the equation. See MPBN