State budget passes first test in House
The Maine House of Representatives has given initial approval to the
state budget for the coming two years May 26, 2009
AUGUSTA– By a 115 to 31 vote, the Maine House of Representatives
has moved forward on a state budget plan for the upcoming two fiscal
years. The $5.8 billion, two-year budget, which reduces spending by $500
million from the previous biennial budget, will now head to the Senate
for another round of votes which are likely to come on Wednesday.
After receiving a unanimous vote in the Appropriations Committee last
week, the House considered a number of proposed amendments to the budget
document on Tuesday evening; rejecting all but one that made technical
adjustments. The accord, struck between Democratic and Republican members
of the Committee, is a delicate balance and both parties wanted to preserve
the entire agreement.
“There are many items in this budget that give us all tremendous
heartburn,” said Speaker of the House Hannah Pingree. “But
the depth of this global recession and the dramatic drop in state revenues
has forced us to make some very tough choices. There are things in here
for people on both ends of the political spectrum to be upset with, but
the reality is that we had to meet in the middle to pass this budget.
It will keep the doors open and maintain vital services that people in
our communities depend on. That is the most important thing.”
Governor Baldacci first presented his recommended budget to the Legislature
in January and the Appropriations Committee held their first public hearing
on the Governor’s proposal in February. The months in between have
been full of thoughtful review. Each of the Legislature’s 17 policy
committees had a hand in examining the budget for their area of oversight
and were instrumental in crafting alternatives.
“This is a very responsible budget that reflects the current economic
climate in our nation and our state,” said Rep. Emily Cain, D-
Orono, the House Chair of the Appropriations Committee. “I am proud
of the work of the Appropriations Committee, and I think tonight's strong
vote in the House serves as a recognition of the intense work our committee
has been through since January, and the open and inclusive process we
maintained every step of the way.”
Despite the more than $500 million in cuts, the Legislature was able
to maintain important health care services and make significant structural
changes in the MaineCare program that will make the program more efficient
in the coming years. These structural changes include shifting away from
the controversial “PIP” system for hospital payments, increasing
reimbursements rates for primary care in order to stress health management
and reduce high emergency care costs, as well as instituting greater
use of prior authorization within MaineCare.
“This budget makes some very difficult cuts to health care programs,
but it also makes some very sound structural changes to MaineCare that
will make it more efficient in the future,” said House Majority
Leader John Piotti, D-Unity. “It is very important that we keep
our health safety net intact as people will be utilizing state services
in greater numbers. These changes will help to maximize the program’s
resources.”
The largest single component of the budget is funding for local school
districts. Funding for the current year is $983 million. The budget document
calls for increasing that to $1.01 billion in fiscal year 2010, before
dropping down to $947 million in FY 2011.
The last two-year general fund state budget that was passed by the legislature
in 2007 totaled approximately $6.3 billion. At the time, allowing for
inflation, it was projected that the state would require $6.8 billion
to cover those same services for fiscal years 2010 - 2011. In January,
Governor Baldacci introduced the biennial budget for Fiscal Years 2010-2011
that totaled $6.1 billion. After an April revenue re-projection, he made
further reductions, trimming another $569 million from the biennial budget.
The budget voted on today by the House of Representatives, totaling approximately
$5.8 billion, is the first time one two-year budget is less than the
previous one.
The Maine Constitution stipulates that without a super-majority, laws
will go into effect 90 days after the Legislature adjourns – usually
some time in mid-September. With the current fiscal year ending on June
30, 2009, the Legislature needs to enact the budget with the support
of 2/3rds of both the House and Senate so that it will become law immediately
upon being signed by the Governor and state government will continue
to be funded on July 1.
After Tuesday’s votes in the House, the budget bill, LD 353, will
be sent to the Senate. Should the Senate approve the measure, it would
then come back to the House for an enactment vote and then be sent back
to the Senate for final enactment. From there it would go to the Governor’s
desk.
Contact:
Tim Feeley (Pingree), 287-1300
Kyle Leighton (Piotti, Cain), 287-1430
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