New Maine budget figures will mean program cuts

AUGUSTA (AP) — The Maine Legislature's outgoing Appropriations Committee, meeting for the last time, is getting a dreary update on state revenues.

State finance officials on Thursday presented the committee with revised figures showing smaller revenues over the next 2½ years. It's due in large part to the sluggish economy, which impacts consumer spending.

For the present fiscal year, which ends June 30, revenue forecasters are downgrading earlier estimates by $35 million. For the next two years, fiscal 2014 and 2015, they're reduced by $125 million. The latter figure's been adjusted slightly since Wednesday.

The lower estimates mean that state government will have less money to authorize for general services.

In the state's highway fund, which is separate, revenues are expected to lag below previous estimates by $20 million in fiscal 2014-15.

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Comments

Zack Lenhert's picture

By how much did LaPage cut

By how much did LaPage cut taxes?...

We could eliminate the tax cut program.

 's picture

Helping Frank Out

1. Revenue forecasting is done by a committee and then worked into the budget by the Appropriations Committee. Paul LePage doesn't sit on either. Your ire is misplaced. I'll bet you are still blaming Bush for the national woes. LOL.

2. Maine over spends. Period.

3. You should complain to Peggy Rotundo. She's the closest solon to you on the Appropriations Committee. She has made her reputation as a free spending Democrat who can't bring herself to pay her bills racked up at hospitals statewide. Your ire is again misplaced.

4. When trying to get out of a hole, it's always best to stop digging.

5. Maine returns the free spending Dems to office. Good luck. What could possibly go wrong?

FRANK EARLEY's picture

It might be time to do something, anything......

I think Paul LePage is finally starting to realize, running a state is far more difficult than running a discount salvage store. His zest to reduce the deficit in Maine, reduce Medicare coverage and Mainecare, in the name of saving money, isn't working. We are now faced with even further reductions in service due to lower than expected revenues. What is wrong with this picture?
Who or what projects expected revenues? what criteria are used in determining the future income, and are programs funded based on those predictions? It seems to me that someone is asleep at the wheel, when it comes to projections. It would be a different story if the results came back as, slightly lower than expected, but to the point that reductions in service are necessary, that's poor management.
I realize that there are those who would rather not spend anything, lets just wait and see what happens. Well, now we see what happens. The governor needs to realize, we need to invest in the economy to benefit from it. Releasing the millions in bond's would be a good start. It's what the people wanted in the first place, and LePages plan to save has seemed to back fire. The days of saying "we cant afford to spend" are over. We can no longer afford not to spend. You get nothing for nothing......

 's picture

Its the tax cut

LePage cut taxes and surprise surprise state revenues are down. Don't buy that the national economy is the issue here. While its not doing very well yet it is growing; Maine has for many decades followed the national economy.Maine is an end-of-road state. It is a long way from major markets (Boston and New York). If Maine is to grow; it must market what makes Maine unique.

FRANK EARLEY's picture

Medicare should have been Madicaid.....

.......

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