BUDGET PANEL HEARS REVENUE IDEAS FROM GOVERNOR

Posted: March 07, 2014 | Appropriations and Financial Affairs, Senator Hill

Dems reject LePage’s faulty logic of holding bonds hostage

 

AUGUSTA—Today, Governor LePage’s top budget officer identified two new revenue sources before the state’s budget writing committee following four days of public hearings on measures to address a shortfall in the two-year budget.

 

 

“The committee has been working for weeks on putting together a budget with very limited access to information and no input from the governor,” said Senator Dawn Hill of York, the Senate chair of the Appropriations and Financial Affairs committee. “It was helpful today to learn about new revenue sources from the governor’s office. This is why the committee wants to work with the governor and his staff.”

Commissioner Millett presented a measure on behalf of Governor LePage that would tap $10.1 million from a lapsing unencumbered balance forward from the state’s general purpose aid (GPA) to local schools from fiscal year 2013 and $11.4 million from additional savings in the Retiree Health Insurance as a result of an updated actuarial projection. According to Governor LePage’s bill, the $21.5 million would replenish the state’s budget stabilization fund, also known as the Rainy Day Fund.

Earlier this week, at a press conference, Governor LePage doubled down on his threat to hold jobs hostage by reneging on voter-approved bond investments he gave the go-ahead to last July, until and unless the Legislature passes his bill.

“It is incredibly frustrating to hear the governor link the funds in the rainy day account with releasing jobs bonds. There is no linkage. It wasn’t a factor for the governor when he used it for his supplemental budget three years ago and it’s not a factor now,” said State Representative Peggy Rotundo of Lewiston, the House chair of the Appropriations and Financial Affairs committee. “If the governor wanted to give the go-ahead for these bond projects, he could sign off on them today. The funding level of the rainy day account should not be an excuse to delay critical investment.”

Governor LePage originally agreed to release the bonds in June when the budget stabilization fund contained $17 million–short of the $60 million benchmark claimed by the governor.

The Appropriations Committee is continuing to work on a budget solution for the shortfall for fiscal years 2014 and 2015 on Sunday, March 9.

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