AUGUSTA – The Appropriations Committee has approved a $5.8 billion, two-year spending plan that contains changes in the state tax code to help balance the budget, though no broad-based taxes were raised.

The new biennial budget package represents an overall reduction in state spending from the previous biennium.

Several property tax programs would be affected, such as the Circuit Breaker, Homestead Exemption and Tree Growth programs for a total savings of more than $24 million.

The Circuit Breaker program, which allows eligible Mainers to receive a partial refund of property taxes or rent, would be reduced by 20 percent across the board; the Homestead Exemption, which used to allow eligible Mainers to exempt $13,000 from their property taxes, would only allow for a $10,000 exemption beginning in 2011; and the Tree Growth program, which applies to Mainers with at least 10 acres of commercially forested property, would see a cut of 15 percent, said Mike Allen of Maine Revenue Services.

“These are programs that are important to people throughout the state, particularly those who are on fixed incomes, but this is a difficult period we’re going through,” said Rep. Peggy Rotundo, D-Lewiston, a committee member.

Lawmakers also agreed to a partial freeze in the indexing of individual income tax brackets, which would generate almost $14 million.

Allen said typically the state’s income tax brackets, which dictate the percentage of income filers pay based on their earnings, are adjusted for inflation each year.

The move is aimed at preventing inflation from pushing filers into a higher bracket, he said. The freeze would result in an average annual increase of $12 or $13 for each Maine income tax filer affected.

“Indexing doesn’t affect everybody, but it affects four out of six returns, or about 450,000 filers,” Allen said.

Further revenue is expected from ramped-up state tax collection efforts, estimated to total $14.6 million.

Rep. Sawin Millett, R-Waterford, who serves on the Appropriations Committee, said four approaches would be authorized if the budget plan is enacted.

One provision would allow the state to hire outside debt collectors to go after money owed. Another would create a three-month amnesty during which people who owe back taxes and haven’t paid in full because of mounting penalties would get a 90 percent break on those penalties.

Two other methods of collection rely on increased data collection and enhanced technology.

One would add delinquent taxpayers to the program used to go after delinquent child support payments, by allowing the state to match data with financial institutions electronically. If people have repeatedly ignored Maine Revenue Services collection requests, those people’s information could be sent out to banks to freeze personal accounts.

The other method would create a state data warehouse that would allow for cross-referencing of certain information provided by individuals to state or municipal agencies, potentially revealing tax fraud previously unnoticed by revenue officials. Millett said one example might be someone with a contracting license working under the table.

“And if those folks are found to be not reporting any income, and there’s data supporting the fact that they were working, the connecting of the data would allow the state revenue services to approach them and engage in either an audit or a filing,” Millett said.

Other states are using this approach with increasing success, he said.