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Augusta, Maine 04333-0002


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For Immediate Release

Date: 11/29/12

Republican Legislative Leaders Support Early Action on Budget Issues

House Republican Office

November 29, 2012

For more information:

Jay Finegan, 287-1445

FOR IMMEDIATE RELEASE

AUGUSTA - The Legislature's Appropriations and Financial Affairs Committee met today to receive a briefing from the Revenue Forecasting Committee on a projected $35 million revenue shortfall for fiscal year 2013, which ends next June 30.

Yesterday, the Governor's Office announced that it is considering a curtailment to close this gap. Curtailment is a budgetary power of the executive branch that allows for a reduction in general fund spending across all departments in the face of revenue shortfalls, but not cost overruns. The last curtailment order was issued in 2010 by then-Governor John Baldacci.

"I support the governor's temporary curtailment proposal as a means to deal with the immediate revenue shortfall," said House Republican Leader-elect Rep. Ken Fredette (R-Newport). "Quite frankly, state government cannot spend money that it doesn't have, and we are mandated by the state constitution to have a balanced budget."

Incoming Assistant Senate Republican Leader Roger Katz (R-Kennebec), who currently serves with Rep. Fredette on the Appropriations Committee, echoed his comments: "Although in a perfect world, these curtailments should be made following legislative discussion, the time crunch here warrants the governor's approach. Both Rep. Fredette and I would support accelerated legislative action on a supplemental budget by the newly elected legislature."

Supplemental budgets are often used by the Legislature to close fiscal shortfalls. ###

Contact:
Jay Finegan
Maine House Republicans
Tel: (207) 287-1445