By Francis X. Quinn,Associated Press Writer

AUGUSTA – A Sunday session of discussions demonstrated that state budget talks are approaching crunch time.

Looking to conclude deliberations by the end of next week, Democrats and Republicans on the Legislature’s Appropriations Committee sat down briefly in mid-afternoon, only to have Sen. Peggy Rotundo announce that they would break immediately for private consultations.

The Lewiston Democrat, who is a committee co-chair with Democratic Rep. Joseph Brannigan of Portland, encouraged the hearing room audience of department officials and lobbyists to stay put even as the panel disappeared.

“If you would be willing to stay around, we would appreciate it,” Rotundo said.

Interested parties had been put on notice that committee members might have questions to ask about portions of Gov. John Baldacci’s $5.7 billion budget proposal for the two-year cycle that starts on July 1.

Earlier, four panelists who had been named to an ad hoc subcommittee spoke with legislative staff and Baldacci administration officials about one of the most controversial elements in the Baldacci budget package – a $250 million plan to trade future lottery revenue for an upfront payment.

The subcommittee includes Sens. John Martin, D-Eagle Lake and Richard Nass, R-Acton, and Reps. Sawin Millett, R-Waterford, and Janet Mills, D-Farmington.

Despite or perhaps because of skepticism over the lottery proposal, the Baldacci administration late last month asked four financial firms if they would be interested in helping to structure and price a deal.

“The state of Maine is considering capitalizing up to $40 million/year of revenue from its lottery program for a period not to exceed 10 years. Currently Maine’s lottery generates nearly $50 million per year,” Administration and Finance Commissioner Rebecca Wyke wrote.

One investment option that has been outlined by the administration would involve the Maine State Retirement System, while another would look for a private investor. Administration officials have also used an example of revenue bonding and say similar financing schemes have advanced in Texas, Florida and Oregon.

“We’re looking at all of them,” Martin said Sunday.

Majority Democrats, if in agreement among themselves, could act by approximately April 1 to take advantage of constitutional provisions and enact budget legislation by themselves.

Asked Sunday if the outcome of committee deliberations was a foregone conclusion, Millett replied: “I hope not.”

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