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Facts show state spending really is down

Published on Wednesday, Sep 1, 2010 at 12:12 am | Last updated on Wednesday, Sep 1, 2010 at 12:12 am 24 Comments

We all know that numbers can be used to prove just about any point you are determined to prove.

We came across an excellent example several weeks ago in a essay appearing in another newspaper.

Rep. Ken Fletcher, R-Winslow, complained in the Kennebec Journal that Democrats running Maine continue to spend more and more money.

"The people of Maine have been told that state government has cut spending 'to the bone,'" he wrote.

"Recently released expenditures for the fiscal year ending on June 30 actually showed that total state government expenditures increased by $193 million compared to 2009," Fletcher wrote.

"Only in Augusta can a 2.6 percent spending increase be spun as a spending cut."

He went on to say that during the last eight years of Gov. John Baldacci's control, total expenditures have increased by $2.3 billion, or 43 percent.

This struck us as remarkable, considering all the furlough days for state employees and cuts to local governments and schools.

So, we checked the numbers. There's a bit more to the story.

Fletcher apparently chose to lump together state and federal revenue.

The Recovery Act approved by Congress resulted in a $1 billion increase in federal spending in Maine in 2009 and 2010. The lion's share of which went to boost Medicaid spending, to extend unemployment benefits and for worker retraining, all meant to help people affected by the recession.

In effect, the only way the Baldacci administration and the Legislature could have kept total spending flat, as Fletcher seems to be suggesting, would have been to turn down the extra federal money for those people.

Of course, no governor or Legislature in the country — or in their right mind — has chosen to do so.

Generally, what the governor and Legislature are responsible for controlling are the General Fund, Highway Fund and Other Special Revenue Funds, all of which are down year to year.

The only thing that pushed overall spending higher was a 13.4 increase in federal funding triggered by the recession.

According to the Office of Fiscal and Program Review, General Fund spending between 2009 and 2010 is down in just about every category, from Aid to Education to Judiciary, to Marine Resources to Environmental Protection.

As Fletcher noted, total spending is up 43 percent during the eight years of the Baldacci administration. What he fails to note, however, is that practically all of that is due to increased federal revenue.

The argument can be made that federal spending is out of control, and it is. Or it can be argued that General Fund spending in Maine would have increased apace had it not been for the recession. It probably would have.

Or, finally, it can be argued that many of the state budget cuts were passed along to other levels of government.

All good arguments. But to infer that Maine state government didn't trim its wings between 2009 and 2010 is just plain wrong.

editorialboard@sunjournal.com

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Displaying comments, from newest to oldest

darthcyclonis's picture

Fact is SPENDING IS UP! It

Fact is SPENDING IS UP! It does not matter where the revenue comes from. Just because we have it we should not spend it. Got to love the Spendocrats.

dlaurels's picture
verified

Thank you

This just goes to show that accounting figures can be used whichever way one wants. The important part is what makes up the numbers. I am glad the Sun Journal decided to investigate the figures.

jmyoung's picture
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Yet another great post Bob.

Yet another great post Bob. My question is......what happens to people? there is NO more money, the state/Fed gravy train is over. And, you only described the tip of the ice berg to the fiscal difficulties coming. Can you say California? I think Mayor LePage should bow out, I cannot believe ANYONE would willingly walk into that mess. We should just close Augusta, start over. I wonder if anyone would notice?

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BobStone's picture
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Spending is pushed higher by Federal Revenue?

This editorial either illustrates an ignorance of basic public sector finance or is an attempt to mislead the readers in an effort to provide cover for the Democrats. Take your pick.

Spending is spending, whether the state funds an EBT (welfare) card or cuts a check to a paving contractor. Spending is "cash out."

Revenue, used to generate "cash in", really has little to do with spending other than to fund it.

If I walk up to the register at Wal-Mart and buy $100 worth of groceries, I need to fork over $100 to Wal-Mart. If I take $75 bucks out of my right hand pants pocket and $25 bucks out of my left hand pocket, I can't say that I only spent $75. That is the argument that the editorial seems to be attempting to make.

I would also note that the State spent hundreds of millions more that is now being carried as a payable to Maine's health care providers. I think the amount the Democrats owe (they control the spending) is now over $300,000,000 and is approaching $400,000,000. And this balance is on top of the hundreds of millions of dollars in "American Recovery" funds (some recovery we are having, heh?) they have applied to the outstanding balance in the account before the "Recovery" funds were sent down to Augusta by Obama and cabal. Let's not let that drop down the "memory hole" while carrying the legislature's water.

The real interesting stuff will play out next year. The legislature will need to stop the spending train created by the Democrats over the last 40 years. They are now an estimated $1 billion short and Baldacci just accepted $39 million in the teacher job preservation funds offered as a sacrifice to the teacher unions by Obama. There is a string attached to the $39 million. Baldacci locked educational spending at the same level as last year. So, now the legislature will have to find $1 billion without touching educational spending. Good luck. Looks like the taxpayers are going to have to fork over even more in taxes as the Great Recession deepens.

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tron's picture
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There should be a disclaimer after each of your posts:

"this message bought and paid for by the LePage for Governor committee."

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BobStone's picture
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You Bet I Support Paul LePage, Tron

Four years of Libby Mitchell would mean fiscal disaster for Maine. She's been in Augusta since 1974 and look at the mess we are in. The piece about the $4.4 BILLION pension debacle is all about Libby and friends. The writer avoided blaming anyone but Democrats, but they have been in charge for most of the past 40 years. In fact, they re-financed the debt to make matters worse several years ago.

Those are the facts, Tron. Now, go back to arguing with your brother in law.

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thinkingman's picture

Mr. Stone with all due

Mr. Stone with all due respect, he is my wife's god father and uncle, please don't make it seem our relation is any closer than that thanks, I'd have to disinfect if it were any closer...

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WideStanceRepublican's picture

Thats a Republican for you

"Fletcher apparently chose to lump together state and federal revenue."

Repeat a lie enough and you are a Republican. Plus it looks like Mr. numbnutz can't do basic math. The stupid - it burns..........

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thinkingman's picture

Bottom line - the state HAS

Bottom line - the state HAS NOT reduced spending, they've simply reduced the amount of spending undertaken with state dollars - they simply spend federal dollars instead...this is the stupidist editorial yet!

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Ron's picture

Same Pocket

OK, if I give you that the State has reduced spending, will you give me that it has done so by reducing revenue sharing with the municipalities and school districts? So, the State has reduced spending (but NOT reduced taxes) and then the municipalities increase property taxes to make up for the reduced State funding for towns and schools. Shifting. That's all it is. So I don't view the State as being a big hero because it has reduced (shifted) spending....and I won't, until I see reduced State and local taxes.

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Pirate's picture
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Good post.

Good post.

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Ron's picture

Reasons?

Thanks Pirate. For those that disagree with me (which is fine), I'd be curious to hear, factually, why you believe what I said is incorrect.

thinkingman's picture

Turd Alert!

So the budget is higher and growing but because its federal dollars and not state dollars, suddenly its okay and the world is perfect? What a load of crap! Dear Sun Journal - you need to remember one important fact - at the end of the day, whether its federal or state dollars being paid at the state level, it still comes out of my pocket. While its easy for the state to make claims of saving taxpapyers its a bunch of shallow promises as the current administration and democrats in power don't know how to cut spending! Oh wait here comes Mr. Albrecth when he awakens at noon to tell us the democrats had a smaller budget this past year than in the past 6 years, but he'll make no mention of the truth - which is that the budget was actually much larger than previous years until the Maine Constitution rules kicked in and revenues did not match projections and they were FORCED to make cuts to have a balanced budget.

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veritas's picture
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So who'se the Biggest 'Suck' on the Taxpayers of all???

Let's see what's out there: FEDERAL AID TO STATE AND LOCAL GOVERNMENTS PER CAPITA, 2007

Back in 2007, Maine ranked 11th out of the 50 States, bringing in $1,936/per capita from the Feds to State and Local Govt.

And Number #1?? Wyoming brought home $3,626 per person. Woo-hoo!! Kind of a mixed bag politically out there, but don't imagine having Home Boy Whistle Dick Cheney as Veep hurt at all.

Who's next? Ah, Alaska!! Even with all that oil hemorhagging off of the northern slopes, and each Alaskan receiving a yearly 'Dividend' check of what's close to a thousand dollars, Momma Grizzly Palin still hit old Uncle Suger (that's you and me!) up for $3,568 for every Alaskan in 2007. Whadda Racket!!!

If suckin' on the Federal Teat makes one Presidential Material - then by all means - she's yer Grizzly!

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Pirate's picture
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All depends on who's gettin'

All depends on who's gettin' it and doin' it, right?

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veritas's picture
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Palin would rather rob us to pay her citizens......

"When oil and gas prices went up dramatically and filled up the state treasury, I sent a large share of that revenue back where it belonged - directly to the people of Alaska." - Sarah Palin

- But she still milked the Federal taxpayers for $3,568/per person - over $1,600 more per capita than Mainers receive.

And you're OK with that???

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Pirate's picture
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The parrot sez he's ok with

The parrot sez he's ok with anything Sarah does. Sez she's a "hottie". The Pirate, on the other hand, stands in amazement at the undue attention she gets from the left. What we fear, we hate? Is that what it's all about? She isn't going anywhere. Won't ever be president, will drag down anyone who chooses her as a running mate. Nothing to fear, so why all the hatred?

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thinkingman's picture

Are you angry or jealous? Im

Are you angry or jealous? Im confused?

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veritas's picture
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Merely pointing out the 'Double Standard'

BTW -

Why aren't all you Rightous 9/11 types up in arms about the new 9/11 Movie Musical??

That's gotta be a real bundle of joy to sing and dance to!!!!

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Pirate's picture
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Who's in it besides Bush?

Who's in it besides Bush?

Lil's picture
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and?

So, another politician with an (R) next to his name is just making sh*t up about spending? And that's news?

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Pirate's picture
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We all new Lil would be the

We all new Lil would be the first to sign on.

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tron's picture
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Rep Fletcher is probably running for reelection or is running

a gubernatorial campaign from a fellow republican. That's politics, and that's fine, but I am ecstatic that the misrepresentations by the wacko right is being exposed. People can decide whether it makes a difference or not, but only if the truth is out there. This illustrates that the LePage republicans are going to 'cook' the figures. Voters beware, if you care.

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Pirate's picture
verified

When have you ever allowed

When have you ever allowed the truth to stand in the way of your fantastic rants?

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