Lawmakers balance budget, but programs have to be cut
By Rebekah Metzler
,
Staff Writer
Wednesday, April 2, 2008
AUGUSTA - Maine lawmakers settled on a budget late Monday night that makes about $130 million in cuts in state spending. The budget bill relied on increased revenue from the sale of unclaimed securities by the state treasurer and fee increases to make up the rest of the $190 million projected shortfall needed to keep the state in the black.
After lengthy public hearings and heated debates among legislators, the dust has begun to settle.
"We have worked diligently to gather the best possible consensus for all Maine people," state Senate President Beth Edmunds said Monday.
Major sticking points along the way to a balanced budget included proposed cuts to the Office of Program Evaluation and Government Accountability, or OPEGA, cuts to the Maine Clean Elections Fund and the continued inclusion of childless adults in MaineCare.
The Appropriations Committee included cuts in its budget that would have eliminated five of the seven OPEGA employees and combine it with the State Office of Fiscal and Program Review, as part of a streamlining initiative to close the structural gap in the state budget.
But lawmakers on both sides of the aisle protested the cuts and the OPEGA language was removed from the overall budget.
"OPEGA is an invaluable tool for the Legislature, offering the benefits of logical and reasoned decision-making on behalf of the taxpayers," wrote Reps. Mike Vaughan, R-Durham, and Andrea Boland, D-Sanford, in an op-ed piece printed in the Sun Journal last Friday. "So far, in its short existence, OPEGA has sifted through $630,892,590 of annual expenditures and shown a potential for cost avoidance of $20,321,040, plus another $2 million in reduction of current expenses."
Some legislators also mentioned the Maine Clean Elections Fund as a place ripe for cuts. First available to state legislative candidates in 2000 as a means of weaning the politicians from depending on private interest fundraising, the fund now supports the majority of legislative candidates. According to the Maine Citizens for Clean Elections, 84 percent of legislators used Clean Election funding.
Although deeper cuts were proposed, the Legislature decided to only cut allocations to Maine Clean Elections candidates in the 2008 legislative races by 5 percent, creating $270,000 in savings.
Lawmakers also sought compromise when it came to continuing MaineCare coverage for childless adults, or "non-categoricals." The "non-cats" consist of adults aged 19 to 64 who do not have minor children at home, are not fully disabled and have income below 100 percent of the federal poverty limit, or $10,400 annually. Twenty-five percent of "non-cats" are between 50 and 64 and earn an average of $5,300 annually.
Gov. John Baldacci's budget proposal included the elimination of prescription drug coverage to the "non-cats" and the Republican budget plan proposed cutting about half of the approximately 18,500 "non-cats" enrolled in MaineCare. But Democrats rejected both proposals, and in the budget passed late Monday, no enrollment cuts were made and the prescription drug coverage to "non-cats" was amended to reduce costs, but maintained access to the benefit.
Ultimately, the state budget cuts left virtually no program untouched as lawmakers sought to mitigate the burden by spreading it around.
"A lot of the cuts are very small, taking $5,000 out of various office accounts and then it adds up," said Tim Feeley, spokesman for House Speaker Glenn Cummings, D-Portland.
More than 70 state employee positions were eliminated. Cuts
$34.1 million cut in state funding to local schools
$5.7 million in cuts to child welfare and foster care services
$3.5 million in cuts to prescription drug benefits to childless adults in MaineCare
$3 million cut to the University of Maine System
$1.8 million in cuts to clinical services provided to children in state custody
$1 million cut to Maine Community College System
$1 million cut to the court system
$560,000 cut to Attorney General's Office
$500,000 cuts to Temporary Aid for Needy Families Increased revenue or savings
$28 million in expected savings on state employee health insurance through preventative health care and wellness steps
$9 million in sale of unclaimed securities by the state treasurer
$356,200 from an account at Department of Conservation that was set aside for a helicopter New fees
$1,000 license fee on certificate of approval for malt liquor and for wine for out-of-state alcohol manufacturers (was $600)
$200 fee assessed by courts for fulfilling summary judgment requests
$31 fee for criminal background checks (was $25)
$25 enrollment fee for parents of children in the State Children's Health Insurance Program
Statistics on the budget were provided by the House Speaker's Office and reflect the biennium. |
CLICK HERE To Show/Hide Discussion Thread - (27 Comments)
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Posted By:Kate at April 2, 2008 5:27 AM (Suggest Removal) Smoke and mirrors.
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Posted By:Mainah47 at April 2, 2008 5:34 AM (Suggest Removal) If you have a better solution, why aren't you in Augusta helping dig us out of this hole?
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Posted By:John at April 2, 2008 6:04 AM (Suggest Removal) Quote "$28 million in expected savings on state employee health insurance through preventative health care and wellness steps" unquote. This is NOT real money. This is a pipe dream.
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Posted By:Independent Voter at April 2, 2008 6:41 AM (Suggest Removal) Please note, despite all of the hand wringing from the Maine media and Democrats, that the legislature will still spend $300 million MORE this budget cycle than in the last budget cycle. And this is just in the General Fund budget....there are other spending budgets in Augusta. Why do you never see that reported by the AP or the Maine dailies? The Maine media is not giving Mainers the full story. All we hear about is whining by the well-entrenched teat suckers who depend upon taxpayers for their salaries.
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Posted By:DJ at April 2, 2008 6:45 AM (Suggest Removal) This will be just the beginning. More cuts are going to be needed. You can be certain that another shortfall is around the corner. Until the leadership in Augusta is changed we will keep having these problems. We cannot keep spending and taxing at the levels we have and expect things to turn around. The current legislature doesn't have a clue and needs to be replaced in November.
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Posted By:Anne at April 2, 2008 6:49 AM (Suggest Removal) The expected health and wellness savings seem extraordinarily high, so I must doubt this savings is possible without more detail. Also, there was no mention that our top-heavy administrative costs were part of the budget cuts. I don't understand why programs are cut first and salaries of state administrators continue untouched.
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Posted By:Joe at April 2, 2008 7:09 AM (Suggest Removal) No one mentions that more than half of the states are in similar financial crisis. No one mentions that the irresponsible spending by Republicans has anything to do with the states' problems. No one mentions that this country is 9 trillion dollars in debt. If you cannot see the connection, that is our problem right there. You.
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Posted By:horsefeathers at April 2, 2008 7:35 AM (Suggest Removal) What a farce! Adding $300 million in new expenses and not paying hosptials and other care givers $300 million. This sends a message to the people of Maine that, "It is okay if you screw hospitals and caregivers out of money, that you really don't have to be responsible for your bills, to hell with credibility and honesty". Good job Augusta! And BTW .. Maines one million plus people have been in debt many billions of dollars long before the Iraq war or even the war in Afghanistan . Maine has been on FDR's 'buy now pay later--lend lease plan' for years. The rocks are right here folks, not in DC. Cutting one penny from a watch dog operation like OPEGA sends another "screw the people of Maine" message. Cutting welfare for politicians via clean elections is another joke (keep in mind Merrill who got away with feeding her own pocket and others who were not caught by the the "random" checking). I would like to suggest that, since Baldacci is paid a relatively low salary, compared to other fat cats in Augusta, that he would send a message "screw our state government payroll, I am going to cut salaries by a comparable amount to my income level." Once again--- the greatest cut would be to reduce the number of self serving legislators by at least 50%. Both cuts would bring a lot of chickens home to roost.
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Posted By:helga at April 2, 2008 7:44 AM (Suggest Removal) Joe, democrats have never seen a program they dont like. How about we stop paying for people to have kids they cant pay for from the time of conception. How about a program on how not to have kids if you cant pay for them. 30 years of democrats in control, its time for a change.
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Posted By:Jaba at April 2, 2008 8:19 AM (Suggest Removal) "...rest of the $190 million projected shortfall needed to keep the state in the black." --- In my mind the word shortfall here seems to indicate that there is not enough money, when we all know that there is. It's not a revenue shortfall, it's financial overspending.
Fees ARE Taxes - so let's not keep saying that there is no new taxes.
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Posted By:sheesh at April 2, 2008 8:37 AM (Suggest Removal) Why should ADOPTIVE parents get any funds from the State of Maine? When you adopt a child your saying that is YOUR child and your willing to accept full responsibiity for them. This should be totally cut. Healthy adults with no children should not get any state benefits unless they do a work program. This alone would save the state a lot of money. I also feel that there should be a limit on how many children a person can get benefits for. I know people who keep having children and collecting welfare benefits so they do not have to work. This is wrong and it's time that is stopped. I also feel that all the aliens being brought in to the state is wrong too! IF we CAN'T take care of the people in our own state, how come they keep letting others in and collecting benefits? We NEED to take care of what is in our OWN countries before bringing in others or helping other countries. Another big cut should be the pay that highter ups in the governemtn get. I'd like for them to try to live off of under $700 a month......
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Posted By:David Hughes at April 2, 2008 8:53 AM (Suggest Removal) Joe, you're thoughts might carry more water for the Dems if it wasn't for the simple fact that Maine is getting more federal dollars now then ever before. We made this mess. Republicans in Washington aren't helping any but they haven't had control for 18 months now. Bottom line, we decided to spend over a half billion more and now we're finding out we only have a quarter billion more to spend. We made the mess the Joe. You can blame any one you want but it won't change the simple fact that we did it to ourselves.
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Posted By:Bob at April 2, 2008 9:52 AM (Suggest Removal) Think it's bad now? Wait till you start hearing the trouble the Maine State Teachers Retirement Fund is in. The Democrats have been using it as their private ATM for years and it's payback time.
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Posted By:Skip at April 2, 2008 10:45 AM (Suggest Removal) Aaaaaah!McKernan,the biggest joke in the history of Governors.
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Posted By:Have Mercy at April 2, 2008 10:57 AM (Suggest Removal) What a joke! We have people moving here because we take better care of our people who need help. That should be stopped. No benefits for 6 months before they qualify. Disabled and low income seniors should be a prority before providing health care for children who have two working parents and then it should be on a sliding scale according to income. After all seniors and the disable are human too. I know of people who have waited a long time to be able to afford to have there children. Some responsibity needs to placed upon parents. Having children shouldn't be linked to entitlement. Link help to those that need it not just because they have children. Our state government is way out of control. Cuts should be made to all departments and when I say cuts I mean jobs as well. We could do as well as other states who have less employees. We are Mainers and we can do better. We need to reinvent our programs, our prorities, our State of Maine Goverment. In these tough times we shouldn't hurt those who need the help the most. Even if they are over 65, disabled, or under 18, we need to proceed
carefully. Even postpone so pet projects to get our people through.
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Posted By:helga at April 2, 2008 11:20 AM (Suggest Removal) As a household of two adults and two kids without health insurance, I dont enjoy paying for others in our same situation to have insurance, just because they can get doesnt mean they should where are peoples morals? Maybe with their lack of self responsibility. Why will they take an elderly persons home to pay back their medicare, but the people who are on medicaid get a free ride? They dont pay back a penny
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Posted By:sheesh at April 2, 2008 11:33 AM (Suggest Removal) Helga, do some research. Maine care WILL take the home owners property IF they have been on the system and got benefits once the person turns 55 years of age. Go to: http://mainegov-images.informe.org/dhhs/bms/pdfs_doc/mainecare%20member%20handbook/summer_06_rev4.pdf page 21 Estate Recovery
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Posted By:helga at April 2, 2008 12:20 PM (Suggest Removal) Angry Citizen, I think what Helga is trying to say is to take care of our elderly with no penalty to them. I also believe that the recipiant of medicaid, just like welfare is not paid back by the one who used it but instead the absent parent is responsible even if they pay child support. Maybe you should be aware of how things really work, not how the state says they do
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Posted By:Bob at April 2, 2008 12:34 PM (Suggest Removal) "T" - you're in denial re: Maine Teachers Retirement.
"Maine State Retirement System Annual Report describes all state, teacher and local pension systems administered by MSRS (287-3461) including investment returns on $8 billion of assets. Annual payments to state employee and teacher pensions cost about 10% of the General Fund. The state's unfunded liability is $3 billion, more than an entire year of revenue for the General Fund."
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Posted By:sheesh at April 2, 2008 1:08 PM (Suggest Removal) Helga stated: the people who are on medicaid get a free ride? They don't pay back a penny. I stated to her that is untrue IF the person owns real estate. I agree that the absent parent should be paying the bills, this part is true. The whole welfare system needs an over haul and lots of people agree with me. I think (maybe I shouldn't think?) that we should go back to vouchers for food instead of food stamps card where people can buy junk food instead of the healthy foods.
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Posted By:sheesh at April 2, 2008 2:10 PM (Suggest Removal) In reference to what Helga said. I can not divulge who this person is because of client confidentiality issues. I personally know of one woman that is disabled and raising two children, or was at the time of this incident. Her ex husband lived out of state and paid child support when he felt like it. The state went after him telling him that he had to pay the back due child support. Mean time the woman was on disability, receiving TANF, food stamps and medical. When her ex husband took a second mortgage on his home in another state, he sent the state of Maine a check for over $12,529. and the mom got $120 of those funds. When her ex husband was paying child support she would get $120 a month for two children. The months he did not pay she got $50 more in food stamps per month. She asked the state for a portion of the $12,529. and they told her that when you first sign up for benefits that you give permission for the state of Maine to retain all monies paid in for child support. OK so those of you who say the state does not get their money back rethink what your saying because I feel that this person should of gotten more then $120 of all that money. Does it seem fair to you? How would you feel? Who benefited from the state keeping all the money? NOT the mother and the children it was suppose to go to. So lesson learned that no matter what you sign, be sure to READ THE FINE PRINT FIRST.
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Posted By:Distressed at April 2, 2008 2:49 PM (Suggest Removal) It is my understanding that all the Senators and Legislators get total health benefits. They do NOT pay a cent. This is wrong and should be stopped. Most of them have other part or full time jobs. They should pay at least 20% of their health care. Any policy I've ever seen does not pay the total care. Even Medicare doesn't pay the total amount for any care.
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Posted By:John at April 2, 2008 2:52 PM (Suggest Removal) Angry Citizen.....me thinks you have your info wrong. If the state was covering this women while the ex-husband was not paying, then the state should be entitled to the money when he finally does pay it up. Now, what happens when she continues to exceed expenditures that the ex is not responsible for? The State (meaning us) continues to pay. I feel your argument is invalid.
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Posted By:sheesh at April 2, 2008 3:09 PM (Suggest Removal) John - the money paid in by the ex husband was more then the funds the woman recieved from the state. What part do you see is invalid?
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Posted By:John at April 2, 2008 6:21 PM (Suggest Removal) Angry.....why did the state go after him if they were not already paying for her and her children? Again, I say, your info is wrong. The state does not chase dead beat dads unless they are entitled to something.
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Posted By:sheesh at April 2, 2008 7:58 PM (Suggest Removal) John - please go re read my first posting on this subject because I think your missing part of the story. It was court ordered through DHS that he was to pay child support. He paid it when he felt like it. He was behind in the child support, state wanted the money so they asked the state he lived in for help. He got a second mortgage on his property to pay the money BUT the mother only got $120 of the full amount he sent in. She did NOT get the FULL benefits for the amount the state wanted him to pay. They wanted him to pay monies in advance so there would not be any chasing. Do you get it yet?? The state should of given this mother the amount of a little over $2000 out of the over $12,529 he paid in. The state took that $70 a month from the mother that should of been paid to her. If you still don't understand, please get a calculator and put in $12529 - $120 = $12,409. That is the amount the state of Maine kept. She had not gotten $12,409 in benefits from the state at that time it was a lot less. End of story
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Posted By:dr. dosh at April 3, 2008 2:49 AM (Suggest Removal) ...just robbing Peter to pay Paul. What about the Highways Division ? They seem to have come out unscathed, huh , Kate ? Ports , travel , tourism , & airport usage fees , maybe ¿ / signed, a former budget analyst , Steve *
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