“In the simplest terms, we have a serious revenue shortfall because there isn’t enough money coming into the state to pay for all the programs and services that we offer.”

That is Gov. Baldacci’s take on the looming $1.1 billion shortfall.

He’s right, but it’s also fair to say taxpayer dollars aren’t used efficiently.

What Baldacci has done in his quest to bridge the budget gap is to effectively force state government to examine financial practices.

In so doing, the office of Medicaid found that, through some accounting changes, it could squeeze $165 million more a year from the federal government. Another $30.9 million in that office will be saved over the next two years by greater enforcement of Congress-approved prior authorization for prescription drugs.

Millions more in “savings” has shown up as various departments as 2002 balance adjustments are returned to the general fund.

The governor said he would balance state finances, maintain essential services and keep taxes steady — all without gimmicks, shutdowns or furlough days.

His budget plan has merit, but it is not perfect.

The governor is right to increase sportsmen licensing fees. He might also consider increasing court costs — civil and criminal.

He’s right to merge the departments of human services and behavioral and developmental services. Other mergers might also be appropriate, such as state, county and local corrections.

He’s right to ask schools and towns to join with their neighbors to reduce costs, putting the emphasis on service, not administration.

He’s also right to go after tax scofflaws and — finally — get Maine out of liquor sales.

But nabbing $6 million in tobacco settlement funds is wrong.

This money is not derived from tax revenue, but from a court settlement. If we chop $6 million from that fund to pay Medicaid bills we endanger prevention programs designed to improve the health of all Mainers.

Also questionable is charging certain Medicaid patients for care. Higher premiums and co-payments will encourage people to put off health care until they’re really sick and care is more expensive.

What may make more sense is to develop a better triage system for Medicaid patients, diverting them from expensive emergency room treatment for routine colds and other minor ailments.

And, despite Baldacci’s assertion about gimmicks, there is smoke and there are mirrors.

The governor has cut 182 jobs, or 1.5 percent, of Maine’s 12,500 executive branch. He hopes to transfer about half of these out-of-work employees into other state jobs. The real job reduction isn’t 1.5 percent. It’s half that.

Baldacci has also tinkered with the Homestead Exemption, reducing tax benefits for homeowners with property valued over $125,000. That is a de facto tax increase in a state where the average price of a home in 2002 was $144,000.

In the coming months as Baldacci’s plan is aired, lawmakers have to take a look at the Medicaid and Homestead Exemption elements. The former is a burden on the poor; the latter a tax increase for the rich.

The greater challenge, though, will be changing government’s mindset to one where every tax penny is leveraged for the greatest possible gain and used in the most miserly fashion possible.

The fact that hundreds of millions of dollars are now being squeezed from a supposedly bare bones budget is proof that, until Baldacci applied pressure, our money has suffered from inefficient government.


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