Dissecting the Supplemental: Other Proposals
February 4, 2010 -
Most people in Maine are aware that we are faced with a $438 million shortfall in revenue. Governor Baldacci submitted a supplemental budget in December that cuts heavily from Education and Health and Human Services and forces additional efficiencies in state government, but does not raise any additional revenue.
Too often, the public is left out of these important decisions. Last week, I discussed in detail the proposed cuts to Health and Human Services. This week, I'll discuss the remainder of the Governor's proposals.
Revenue Sharing
Revenue Sharing is cut by $27 million for the biennium; $12 million cut in fiscal year 2010, and a $15 million in fiscal year 2011. This means cities and towns will get less money from the State to spend at their discretion.
State Employees
The Governor has found $70 million in the Retired State Employee Health Program by eliminating 44 positions, including 15 layoffs. There are also three furlough days proposed, which would save us $640,000 per day. Despite the huge cut, the are no cuts to services and no increases on unfunded liabilities.
$35 Million Placeholder
The are currently bills in Congress to extend the enhanced federal financial Medicaid matching rate to June of 2010, and to extend the federal Budget Stabilization funding for education. If these bills pass, it will mean more stimulus funds coming to the State coffers, and the Medicaid extension alone would mean an additional $60 million. The placeholder is conservative in this respect, since we can't guarantee any funds coming to Maine.
Natural Resources Consolidation
The Governor has convened a working group of interested parties to study and recommend streamlining, cooperation, and coordination of services and activities among the four natural resources agencies (Agriculture, Conservation, Inland Fisheries and Wildlife, and Marine Resources) for savings of $1.25 million. These agencies are not required to merge. In addition, four bureaus in the Agriculture Department will be reduced to three.
Department of Economic and Community Development Reorganization
The DECD will be reorganized to create $250,000 in savings for fiscal year 2011. The Commissioner of DECD will report to the Appropriations and Business, Research, and Economic Development Committees by March 15, 2011 with a proposed reorganization plan. The plan will include the creation of a single economic development strategy, regional economic development districts to serve as one-stop-shops for business attraction and retention.
The Legislature and the Judiciary
The Legislature will lose about $2.3 million, while the Judiciary is set to lose around $1.1 million.
Electronic Payments and Benefits Cards
The State Treasurer is required to convene a work group to investigate the opportunities to align the use of Electronic Payment/Benefit Cards across state government for increased efficiency and savings.
State Police
The Commissioner of Administrative and Financial Services is authorized to enter financing arrangements and issue Certificates of Participation for the purchase of new State Police vehicles. The total cost may not exceed $1.8 million, and the interest rate may not exceed eight percent.
