Governor LePage to offer Supplemental Budget for Fiscal Year 2011

March 28, 2011

Augusta, Maine -- Maine Governor Paul LePage is presenting a second supplemental budget to the Legislature to offset new budget issues uncovered by the new management team at the Maine Department of Health and Human Services and other program shortfalls.

Administration officials have briefed legislative leaders and members of the Appropriations Committee. Final bill language is expected later in the week.

The shortfall within the MaineCare program is associated with under budgeting for MaineCare utilization and the required settlement in the Targeted Case Management suit between the department and the U.S. Department of Health and Human Services. Specific figures are as follows:

• $29.7 Million Targeted Case Management court decision • $31.9 Million Projected MaineCare shortfall

The Maine Department of Health and Human Services is offsetting$23.8 Million of the shortfall internally through savings initiatives and earned federal revenue in allowable administrative costs in the State Children’s Health Insurance Program.

The LePage Administration is asking the Legislature to move the obligation for the Targeted Case Management court decision to the upcoming biennium, leaving a $8.143 million shortfall in the current fiscal year requiring a General Fund Appropriation. This deficit is combined with minor shortfalls in four other state programs creating an outstanding shortfall of $11.3 million.

The Governor is self-funding the shortfall and asking the Legislature for $11.3 million in fund transfers and authorized savings to close the gap for the fiscal year ending June 30, 2011.