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AUGUSTA (AP) – A battle may be brewing over Gov. John Baldacci’s $5.7 billion spending package for the two-year cycle that begins on July 1, but on Thursday legislative budget writers got a look at financial adjustments proposed for the final months of the current fiscal year.

The supplemental budget proposal for fiscal 2005 looks to cover shortfalls in a variety of departments and programs, including $17 million in tax reimbursements for businesses.

Enabling the administration to offer most of the restorations is a $72 million upward revenue reprojection for the year.

Administration officials led by Commissioner Rebecca Wyke of the Department of Administrative and Financial Services outlined a list of proposed adjustments for the Appropriations Committee at a session that also featured discussion of the biennial budget blueprint that Baldacci unveiled last week.

In that package, the governor is calling for a $250 million boost in school aid.

The package envisions the elimination of 69 state employment positions and puts 46 other slots under review.

Capitalizing up to $40 million of lottery revenue for 10 years could generate $250 million from an investor for the biennium, according to the administration, which is also proposing to stretch out a state timetable for reducing Maine’s unfunded pension liability. Moving from a schedule of 14 years to 23 years could be worth more than $135 million through fiscal 2007.

Both items are already raising questions.

The Baldacci package also recognizes $94 million in higher than anticipated state revenue that was projected for the upcoming budget cycle by the Maine Revenue Forecasting Committee in its Dec. 1 report.

The 13-member Appropriations Committee has nine new members this session, including all but one of its five Republicans.

Among the returning members are House Chairman Joseph Brannigan, D-Portland, and Sen. Margaret Rotundo, D-Lewiston, who moves in as Senate chairwoman.

Others are Sens. John Martin, D-Eagle Lake, and Richard Nass, R-Acton, and Reps. Benjamin Dudley, D-Portland, Margaret Craven, D-Lewiston, Jeremy Fischer, D-Presque Isle, Arthur Lerman, D-Augusta, Janet Mills, D-Farmington, Sawin Millett, R-Waterford, Robert Nutting, R-Oakland, Stephen Bowen, R-Rockport, and Darlene Curley, R-Scarborough.

Dudley and Millett are holdovers.

AP-ES-01-13-05 1841EST


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