January 10, 2008
Governor's Office
AUGUSTA – Governor John E. Baldacci’s Administration unveiled the Fiscal Year 2008-2009 supplemental budget and a companion piece of legislation on the Governor’s jail consolidation proposal. The supplemental addresses a $95 million revenue downturn projected for the two-year budget period and continues the Governor’s efforts to streamline government, reduce administration and control spending.
The Governor had issued an executive order in December directing State agencies to reduce the rate of spending in the current fiscal year by $38 million. The action was necessary because the Governor has a Constitutional duty to make sure the budget is balanced this fiscal year.
“The budget I am unveiling today continues the many goals of the spending reductions from the curtailment order of late last year, meeting my obligation to balance the budget in a fiscally responsible way, while protecting our State economy and the vital safety net for Maine people,” said Governor Baldacci.
Echoing the message he delivered Wednesday night in his State of the State address, the Governor said that there are hard choices in this supplemental budget. “I understand that these decisions touch real lives,” said the Governor. “That is why I have vowed to not pull the safety net out from under our must vulnerable citizens. At the same time, we need to address this revenue downturn. My supplemental proposal does not increase taxes or fees and does not raid the financial reserves to balance the budget.”
As proposed to the Legislature, the supplemental budget closes the $95 million revenue shortfall and balances the budget for the remainder of the biennium. Nearly 90 percent of the FY 2009 reductions are ongoing, meaning that savings from spending reductions will continue into the next biennium, thereby reducing that expected shortfall.
Continuing government streamlining, the Governor’s supplemental budget puts into motion consolidation efforts impacting departments administering natural resources, health and human services and others. Joint purchasing for prescription drugs for public employers and joint purchasing for schools are also major initiatives within the proposal.
A companion bill to the supplemental budget was also released today, formally presenting the Governor’s proposal to unify county jails under the state corrections system, resulting in significant savings, end overcrowding and improving services designed to maintain prisoner health and decrease recidivism.
The corrections unification legislation proposal eliminates the need for new construction of four facilities and combines administrative services. Under the plan, the State will assume operation of jail functions and establish regional facilities organized by the eight existing prosecutorial districts.
“My plan ends the current fragmented, wasteful system that does a disservice to inmates, taxpayers and the people of Maine,” said Governor Baldacci. “My Administration has been working extensively with stakeholders since August on this issue, and we have made progress. I look forward to continuing to work with stakeholders and Legislators to achieve a solution that will save taxpayers money and improve the treatment of the people in our care.”
Governor Baldacci said, “In all, the proposals I offer today take the steps necessary to protect our economy and improve the lives of the people of Maine in a way that is fiscally responsible. Through controlling spending and reducing administration, we will balance this budget and make the critical investments needed to grow our economy now and into the future.”
For more information on the supplemental budget, please visit: http://www.maine.gov/budget
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