Governor LePage Unveils Supplemental Budget

January 12, 2011

AUGUSTA, Maine - On Wednesday, Governor Paul LePage put forth his proposal on the supplemental budget that will take the State through the end of the fiscal year.

In order to move the State forward Governor LePage’s plan repays thirty-six hospitals for settlements dating back to 2006. If the budget is approved by two-thirds of the legislature all hospitals will be current through June 2009.

“Fast action is required because good paying health care jobs are being eliminated and because the federal match decreases over time,” Gov. LePage said.

The Governor also addresses upcoming funding challenges involving increased enrollment in MaineCare. In a matter of weeks, without further allocations the state will be forced to stop making payments to nearly 4,000 providers. In order to avoid a reduction to 300,000 MaineCare recipients the Governor has allocated $39.3 million to account for increased enrollment in MaineCare.

Immediate tax relief can also be found in the Governor’s proposal. $4.5 million dollars is allocated to align Maine’s tax laws to the federal code.

“If we don’t act on that we’ll have to re-write all the forms as people are getting ready to file their taxes, so we need to take some action. That’s going to cost the state roughly about four and a half million dollars out of current revenues. But the good news is that we’re putting that money in Maine people’s pockets where it belongs.”