Budget Panel Backs Proposal to Help Close Shortfall

Committee Passes Governor’s Plan to Replenish Rainy Day Fund and Restores Critical Education Funding and Merit Pay

AUGUSTA — The state’s budget-writing panel today endorsed a $42 million proposal to replenish the state’s budget stabilization fund, while also restoring critical funds for local education and Head Start, student aid for higher education, and pay for state employees, including state police.

The measure retains all original aspects of Governor LePage’s budget bill to replenish $21 million to the state’s budget stabilization fund, also known as the Rainy Day Fund.  The committee amended the bill to also restore the Governor’s proposed cuts for fiscal year 2015, including $9.6 million for local education, nearly $500,000 for Head Start, more than $600,000 for student scholarship funds, $200,000 for the Baxter School for the Deaf, and $4.5 million for merit and longevity pay for state employees.

“We gave the Governor what he wanted in a timely way. We also included a compromise to support education, young children, and hardworking state employees like our police,” said Rep. Peggy Rotundo, co-chair of the Appropriations and Financial Affairs Committee. “In divided government, you must work together in good faith. You can’t expect to get all or nothing.”

The restorations are funded primarily through surplus casino revenues, a balance in the Dirigo health fund, and a reduction in Pine Tree Zone tax credits.

“Government works best when we all work together. This measure incorporates all that was important to the governor and it gets us one step closer to solving the state’s budget issues,” said Senator Dawn Hill of York, co-chair of the committee.

The committee voted party line 8-5 in support of the amended measure, LD 1807. It will now head to the House for further votes.

###