Panel Unanimously Backs Bill to Address Budget Shortfall
Lawmakers reach compromise on budget, rainy day fund
AUGUSTA — Early this morning, lawmakers on the state’s budget-writing committee unanimously endorsed a proposal to address a shortfall in the state’s two-year budget. The committee also reached an agreement on replenishing the state’s rainy day fund.
“We were pleased to be able to come to an agreement that will both pay our bills and prevent cuts to our schools and young children,” said Representative Peggy Rotundo of Lewiston, the House Chair of the Appropriations Committee. “We were able to find common ground and solve our problems despite the challenges we faced with a Governor who refused to collaborate for the good of our people.”
The proposal closes a $40 million gap in fiscal year 2014 and a $18 million gap in fiscal year 2015. The committee also unanimously endorsed Governor Paul LePage’s proposal, LD 1807, to replenish the budget stabilization fund, also known as the “rainy day fund,” by $21 million. Initially, LD 1807 included a compromise amendment that would have restored LePage’s proposed cuts to K-12 funding, Head Start, higher education, and merit and longevity pay increases for state employees previously negotiated but unfunded by the Governor. The committee unanimously agreed to fold in the amendment to the budget bill.
“Together, Democrats and Republicans worked to solve two major problems. This budget pays our bills for 2014 and gives us a good jump-start on 2015,” said Senator Dawn Hill of York, who serves as the Senate Chair of the Appropriations Committee. “In spite of a lack of cooperation from the Governor, lawmakers persevered. Legislators were able to put politics aside and do what’s right for the people of Maine.”
The bill restores $12.8 million of the $22.5 million cuts proposed by Governor LePage in the Rosen Report presented by the Office Policy and Management. Those cuts are restored with casino revenues, reductions in the Pine Tree Zone tax credit, and unspent funds for Dirigo Health program. The bill also reduces the Governor’s curtailment authority from $22.5 to $9.7 million.
The measures now heads to the House and Senate for a vote.
The committee will continue to work on a separate measure to close the remaining gap in 2015.
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Audio from the committee vote can be found here: https://soundcloud.com/
Follow the House Speaker’s Office Budget Blog, where you can finde extensive budget details www.mainebudget2013.wordpress.