LePage to announce $35.5M in spending cuts

AUGUSTA (AP) — Gov. Paul LePage's administration is expected to issue an order cutting state spending by $35.5 million this week.

Lawmakers have been anticipating the curtailment order for several weeks, since lower state revenues were forecast in November.

The Portland Press Herald reported that the announcement could come as early as Wednesday.

The administration also is preparing a supplemental budget to close a projected shortfall in the two-year budget that ends June 30. That gap is because of a projected $100 million shortfall in Health and Human Services.

Michael Allen, the state's associate commissioner of tax policy, told lawmakers in November that the revenue shortfall comes from a convergence of events including the "fiscal cliff" negotiations in Congress and a Maine economy that is not growing as quickly as hoped.

Campaign Trackers
Joel Page

FILE - In this Dec. 5, 2012 file photo, Gov. Paul LePage speaks at the swearing in ceremony for new representatives at the State House in Augusta, Maine. As LePage addressed the newly elected Legislature in early December, his frustration with trackers, the video camera-toting operatives who follow politicians around, boiled over into a brief diatribe that set the session off to a sour start. (AP Photo/Joel Page, File)

What do you think of this story?

Login to post comments

Our policy prohibits comments that are:

  • Defamatory, abusive, obscene, racist, or otherwise hateful
  • Excessively foul and/or vulgar
  • Inappropriately sexual
  • Baseless personal attacks or otherwise threatening
  • Contain illegal material, or material that infringes on the rights of others
  • Commercial postings attempting to sell a product/item
If you violate this policy, your comment will be removed and your account may be banned from posting comments.

Advertisement

Comments

Mark Brennick's picture

The next two year budget that

The next two year budget that begins in June will already be 800 million short..If you took back the tax cuts it would be about 400 million short.We cannot keep taxing our way out of this mess.People need to get off their lazy butts and start helping themselves.We still owe millions to the hospitals.If you don't think there's a problem you must have your head in the sand.

CLAIRE GAMACHE's picture

Where's the meat?

Seems to me the whole point of the tax cuts was that letting more money stay in the hand of the wealthier Mainers was going to create jobs. Remember the "job creators"? Yet, Maine corporations after all this largesse are not paying in the amount of tax money that they have in the past. What gives? Does that mean profits are down and there are no customers? Maybe if people had jobs, there would be customers. Maybe if the bonds approved by the citizens had been spent and the economy stimulated, people would have jobs and there would be customers and we wouldn't be in a downward spiral. Two more years of this and we will be looking like Greece.

 's picture

Madame Gamache

Cutting the top tier from 8.5% to 7.95% isn't enough to stop most affluent people from moving to a lower tax climate. At 7.95% coming of the top of their income, it doesn't make sense to remain here for more than 179 days a year. That's why you see so many people becoming ex-Maine taxpayers.

The 70,000 working Mainers who are going to be greatly impacted when the tax cuts for them kick in next week will appreciate the help.

Now, will you send in an extra $5,000 next April 15th to help pay for your precious programs? No? Didn't think so.

CLAIRE GAMACHE's picture

Well let's see

We can gather from that that we should give them more tax breaks, letting the middle class worker take on more of the burden for financing schools, roads, plowing etc and then they will create jobs. I have a bridge in Brooklyn to sell to anyone who will buy that. I read this morning that more and more businesses are relocating to the Caymans to avoid paying taxes altogether. In my opinion, business owners who do not care about their community and who look on workers as peons to abuse and discard and who are perfectly happy to see the most disadvantaged in their community suffer needlessly for their misfortune should leave and the sooner the better. We built this country without them and the sooner they leave the sooner we can do it again. During the economic heyday of this country businesses took pride in being American and paid the taxes to support it. Now they just leach off the rest of us making money by the barrelful, in the fast food industry, for example, and paying their workers so little they have to have food stamps to survive and we end up paying for their health care in the emergency room. The next time you buy the dollar meal you should also add the cost of food stamps and emergency room medical care to it because we are paying for it while the company and ceo's rake in outrageous profits. It's high time these companies pay their share and that we plug up loopholes that allow American companies to dodge taxes and still call themselves American.

 's picture

Facts

1. The top 10 percent of evil income earners pay most of the taxes. About 50% of Americans pay nothing.

2. Cayman Islands has a zero percent corporate income tax rate. America has one of the highest corporate income tax rates in the world. Plenty of corporate tax goes to paying for those who choose to stay home and refuse to work.

3. If I don't work a lick, am able bodied, just who is a "leach?"

4. Just what is an outrageous rate of return? 1%? 10% 15%

Your model sounds less like America and more like the USSR. Remember them?

GARY SAVARD's picture

The tax cuts Gov. Lepage and

The tax cuts Gov. Lepage and the Republicans passed helped many Maine WORKING people that do not by any means have "high" incomes. The key word here is WORKING...which people on the dole do not seem to want to absorb.

Steve  Dosh's picture

LePage to announce $35.5M in spending cuts

all 12.26.12 18:30
Something to be proud of, eh ?
Thirty five million . How much does a B I W destroyer co$t these days . ? US$1B ? Simply a m a z i n g . Seems to me we calculated how much it cost to plow public roads in ME over the course of a winter . It was ? US$35 Million . . h t h ? /s Steve

MARK GRAVEL's picture

Don't forget that BIW spends

Don't forget that BIW spends federal dollars not state dollars.

Denis Ledoux's picture

lower tax revenue...

Duh! After the largest tax cut in Maine history. Do I need a PH. D in economics here? Oh, I'm sorry...

Let's blame it on the Department of Health and Human Services. How could I be so confused as think the tax cut may have something to do with the shortfall? Yes, let's take services away from our "have nots."

Isn't that how we judge the greatness of a society: by what it can give to the "haves" and what it can take away from the "have nots." LePage is obviously leading us to greatness.

MARK GRAVEL's picture

We sure live in an upside

We sure live in an upside down world when being allowed to keep more of what your earn is called taking from the have nots.

Now I cannot speak for everyone with similar thoughts as mine, but that kind of upside down talk is desensitizing. That is, Denis, I don't give a damn about your plight or fake cries anymore; the poor in America are not poor by world standards. I and other like minded individuals want to control the money we earn.

Gov. LaPage is doing the right thing and balancing the Sate budget - kudos Gov.

MARK GRAVEL's picture

We sure live in an upside

We sure live in an upside down world when being allowed to keep more of what your earn is called taking from the have nots.

Now I cannot speak for everyone with similar thoughts as mine, but that kind of upside down talk is desensitizing. That is, Denis, I don't give a damn about your plight or fake cries anymore; the poor in America are not poor by world standards. I and other like minded individuals want to control the money we earn.

Gov. LaPage is doing the right thing and balancing the Sate budget - kudos Gov.

Advertisement

Stay informed — Get the news delivered for free in your inbox.

I'm interested in ...