Maine state revenues down, cuts expected

Bangor Daily News, March 27, 2007

(excerpt) State revenues for this year and for the next two years are being reprojected downward by about $75 million, and Gov. John Baldacci says the change in expected income means cuts in state spending.

"This is challenging news, "Baldacci said, "but it is not unexpected."

The governor said he has ordered Finance Commissioner Rebecca Wyke to review all planned state expenditures for the rest of this budget year, which ends June 30, to see which ones can be reduced, delayed or eliminated. He said the current budget includes $30 million appropriated to the state budget reserve, which will be tapped "as a last resort" to balance the budget.

The revenues are projected at $34 million below estimates for the rest of this year, down by $21 million in 2008 and by $20 million in 2009.

"We will have a change package for the [Appropriations] committee within two weeks to make up the $41 million," Baldacci said. "We will be proposing cuts to make that up."