RADIO RELEASE
For Immediate Release: Saturday, March 19, 2005

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Budget panel putting on finishing touches
Balanced budget will go to full Legislature

AUGUSTA – The Legislature’s Appropriations Committee was still taking votes early Satruday morning, and expected to finalize the two-year budget today.

The balanced budget increases funding to education by $250 million in two years, finds more than $425 million in efficiences, and preserves property tax relief legislation, all without raising broad-based taxes.

“We knew several things”, said Senate President Beth Edmonds. “That we must complete the budget by April 1, as we promised; that we must be fiscally responsible; and that we must make judicious and prudent cuts to state government, but not at the expense of our most vulnerable citizens.” [AUDIO CLIP 1: Edmonds]

Budget writers were faced with a more than $700 million gap between the cost of existing services and expected revenues. They also had to fund $250 million in additional education spending – the largest one-time increase in education funding ever – all in a two-year period.

After days of cordial and productive negotiations, committee members and Democratic and Republican leadership finally agreed to disagree Thursday night, opening the way for final budget drafting by majority Democrats.

“We worked closely with the Republicans and this is a better budget because of it,” said Speaker of the House John Richardson. “This budget removes several significant elements that people were uncomfortable with; it continues to meet the needs of Maine citizens; it funds education and property tax reform as demanded by the people of Maine.” [AUDIO CLIP 2: Richardson]

Senate Democratic Leader Michael Brennan said the budget keeps a promise made in January.

“In January, this Legislature passed LD 1, a measure to provide property tax relief,” Brennan said. “In this budget we fulfilled the promises we made in that legislation.” [AUDIO CLIP 3: Brennan]

“It’s a balanced budget in a difficult year,” said House Democratic Leader Glenn Cummings. “We worked hard to reach an agreement, but our ultimate responsibility is to pass a budget which best serves the interests of Maine people. This budget dramatically cuts spending, and makes a sound investment in the fiscal stability of our retirement system and the future of our state.” [AUDIO CLIP 4: Cummings]

The Legislature’s Office of Fiscal and Program Review will work over the weekend to complete drafting of the $5.8 billion budget. Richardson and Edmonds plan to bring the budget to the full Legislature in time for an April 1 enactment.

Here are some of the elements of the budget plan as of late Friday night:

• Democratic proposal restores $59 million in the General Fund Appropriations to social service and health care programs that the Governor cut by $140 million.

• Rejects Sunday hunting and non-resident first-day dear season hunting proposals.

• Reduces the Governor’s original hunting, fishing, and other recreational fee increases proposal from $3 to $2, raising over $7 million for the Department of Inland Fisheries & Wildlife.

• Provides additional funding to the University of Maine system, including an additional $6 million over the biennium.

• Restores $900,000 to Adult Education programs.

• Increases transportation adjustments for large rural schools with student enrollments exceeding 1,250 students, by over $1 million.

• Rejects PNMI Tax and Match on private pay residents: The original proposal to draw federal dollars with tax and match on Private Non-Medical Institutions was rejected by the Appropriations Committee.

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Contact:
David Connerty-Marin (Richardson) 207-287-1307 / cell: 831-3313
Roger Fenn (Edmonds) 207-287-1558 / cell: 841-5291
Kaylene Waindle (Cummings) 207-287-1433 cell: 615-4187
Michael Johnson (Brennan) 207-287-1528