Maine Governor Presents Plan to Address Revenue Decline

June 9, 2009 -- AUGUSTA – Maine Governor John E. Baldacci today released the details of his plans to close a projected revenue decline for the remaining two months of fiscal year 2009.

“Last month, I signed into a law a State budget that reduced spending by $500 million and that made important structural changes to Maine’s government,” Governor Baldacci said. “The budget also left us in a position to deal with the further erosion of State revenue for the current year. When we passed the budget, we knew that our work wasn’t done. We will continue to meet the challenges before us and take responsible actions to ensure that State has a balanced budget.”

Article continues below...

According to preliminary revenue estimates for May from the State Controller, State revenue for May was under budget by $21.2 million. Analysis of the shortfall by Maine Revenue Services and the Department of Administrative and Financial Services attributes roughly half of the amount to timing issues that should resolve this month.

The Governor’s proposal, which was presented to the Joint Committee on Appropriations and Financial Affairs today, would:

• Transfer $24 million in the Budget Stabilization Fund reserve account from fiscal year 2010 to 2009;

• Capture $1.6 million in unobligated funds from across State government; and

• Utilize $2 million of the approximately $2.7 million revenue balance in fiscal year 2011 created by the State budget, which was signed May 28.

Revenue projections for June are not available.

“While it is too early to project our revenue picture for June, the steps I am proposing today will give the State the flexibility to respond quickly to further, potential declines,” Governor Baldacci said. “We will continue to keep a close eye on the economy, and we will continue to make adjustments as necessary.”

The proposal balances the fiscal year 2009 budget without significant program changes or reductions in services.

“The national economy is facing unprecedented challenges, but we are seeing some positive signs,” Governor Baldacci said. “If we continue to work together in a bipartisan and cooperative way to put the best interests of the State first, I know that Maine will weather these challenging times and be prepared for future prosperity.”

Source: Maine Governor