Governor Releases Biennial Budget
Initial review leaves Republicans concerned with the use of one-time funding.
For Immediate Release For more information contact:
January 7, 2004 Jason Fortin 287-1445 (office)
AUGUSTA, MAINE – Republican Leadership was briefed this morning by Governor John Baldacci on the contents of his biennial budget for the FY06-FY&07. The Republican briefing came two days after the Governor met with Democratic Leadership and a member from the State Employees Union. An unfortunate tone was set when the Governor revealed his willingness to accept a majority budget.
Republicans left the budget briefing concerned with the Governor resorting to one-time revenue enhancements, as he did in the last biennial budget, rather than addressing the core issue of state spending out pacing revenue growth.
“It is our hope that there is opportunity for Republican input during the budget process,” said Senator Paul Davis, Senate Republican Leader. “It would be a great failure of the citizens of Maine if the Governor and the Democratic Majorities resorted to the same simple majority budgets from last session.”
“The contents of this budget reflect the same old ‘solutions’ that plagued the last budget.” said Representative Josh Tardy, Assistant House Republican Leader. “The more budget detail that is revealed the more concern grows over this document.”
The FY04-FY05 budget relied heavily on one-time revenue enhancements to close a structural gap. Those actions helped to perpetuate the current structural gap by removing revenue sources as occurred with the sale of the wholesale liquor business. The Governor proposed a similar action with the most notable being the sale of the State Lottery Business to the Maine State Retirement System in the current budget. Republicans are concerned such an action will lead to future structural gaps.
A re-amortization of the Maine State Retirement Fund is also included within the budget. The fund is scheduled to be paid off by 2028, but current statute requires that the schedule be accelerated. The Budget eliminates that accelerated pay off in order to capture additional one-time revenues.
“This budget seems to reflect a continuation of a credit card spending mentality that has wreaked havoc on past the state budgets,” said Representative David Bowles, House Republican Leader. “Mortgaging our children’s future with the use of one-time revenue instead of dealing with the unsustainable spending levels is not a viable long-term solution.”
“The sale of the lottery and a restructuring of the payment schedule for the State Retirement System don’t seem like long-term solutions,” said Senator Carol Weston, Assistant Senate Republican Leader. “I simply don’t see how selling a paycheck and spending a portion of the state’s savings account will put Maine onto the path of fiscal stability.”
###
