AUGUSTA (AP) – Aides to Gov. John Baldacci have opened talks with Republican critics about the controversial $450 million revenue bonding provision in the pending biennial state budget that has sparked efforts to force a people’s veto referendum.

With other borrowing proposals on hold and public hearings on follow-up budget legislation slated to open today, State House discussions on fiscal matters are proceeding on multiple fronts.

One venue is the Appropriations Committee, which split along party lines in late March over the details of a two-year spending plan for state government.

But with the governor and legislative leaders exploring available resources and possible ways to strike a new balance between spending and savings, the Education Committee, the Health and Human Services Committee and even the Taxation Committee could have roles to play.

Heading into the weekend, Baldacci aide Lee Umphrey said top advisers to the governor had met not only with ranking House and Senate lawmakers from both parties but also with two of the most prominent GOP opponents of the revenue bonding plan – Sens. Peter Mills of Cornville and Karl Turner of Cumberland.

“We’ve got some ideas and we want to work with the legislators,” Umphrey said.

A key topic, he added, was the potential for “a revised borrowing plan.”

Proposing a set of spending adjustments earlier this month, Baldacci spoke of the need for a contingency plan “as a precautionary measure” in the face of a potential people’s veto of a major portion of the $5.7 billion two-year state spending package.

House Minority Leader David Bowles, R-Sanford, has said he believed Democrats and Republicans were “getting close to some kind of framework where we can sit down and negotiate a replacement for the borrowing piece in the budget.”

The net amount that could be needed is about $250 million – roughly the amount of new state aid for local schools that was approved in the aftermath of a referendum promoted by the Maine Municipal Association last year.

Senate Majority Leader Michael Brennan, D-Portland, echoed by Democratic Rep. Jeremy Fischer of Presque Isle, has played a lead role in demanding concrete alternatives from Republican lawmakers while expressing a willingness to work with them.

Parrying such arguments have been Republican Sen. Richard Nass of Acton and Republican Rep. Sawin Millett of Waterford.

Amid the private talks, people’s veto advocates say they continue a petition drive for a November referendum vote. Outside the State House, the Maine Education Association has been involved with other parties in discussing how the push for a people’s veto might be countered.

The Appropriations Committee plans to conduct its new round of public hearings on budget items from Monday through Thursday.

Facing a $73 million federal aid shortfall, the governor has proposed a tightening of prescription drug access for Medicaid beneficiaries that could save $19 million and an expansion of service provider taxes to cover mental retardation services that could raise another $12 million.

The administration would also draw on some of $95 million previously earmarked for hospitals – $29 million.

AP-ES-05-22-05 1305EDT