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AUGUSTA (AP) – Legislative negotiators sat down Thursday to review proposals put forth by Democrats and Republicans to tighten up a pending state budget so that they can scrap a controversial borrowing provision contained in it.

A melded list of budget-trimming possibilities developed by lawmakers in both parties drew numerous requests for follow-up information from Appropriations Committee members and occasionally stern warnings from department managers who said some impacts on operations and services could be severe.

Budget bargainers looking to replace a $450 million revenue bonding plan in the $5.7 billion state spending package due to take effect July 1 are looking for ways to fill a hole pegged at a net of $250 million.

Some lawmakers have spoken of a need to minimize spending reductions by raising taxes or generating revenue from other sources. But for now, the Appropriations Committee’s focus has been on cuts, ranging from curbs on human services programs to a cap on subsidies to business.

On Wednesday, a divided Taxation Committee offered a plan to broaden Maine’s sales tax and reduce income taxes that proponents said could generate $66.3 million for fiscal 2006 and $80.6 million for fiscal 2007.

The measure would set those amounts aside in a budget stabilization fund, but such sums of money would make a tempting target for some in the budget-balancing debate.

Gov. John Baldacci said Thursday he appreciated the work of the Taxation Committee but characterized the package as “premature.”

For negotiators, time is running short. Legislative leaders have been hoping to have lawmakers wrap up this year’s business in the Senate and House of Representatives next week.

Also still on many to-do lists are bond proposals for highways, environmental projects and research and development.

As the legislative sessions moves toward a finale, bargaining sessions occur sporadically with lawmakers and Baldacci administration officials snatching time in between House and Senate floor action to trade lists and discuss deals.

With taxes and program funding on the line, lobbyists and other advocates swarm State House hallways, trying to monitor developments and win opportunities to state their case.

The Appropriations Committee attracted a standing-room-only crowd Thursday.

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