Maine news, sports, weather from Waterville Morning Sentinel

March 22

Budget commitee holds late session

By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- The Legislature's budget committee continued to work late into the night Sunday on a $310 million supplemental budget that brings the state's $5.7 billion two-year budget into balance.

What started out as a $438 million budget in December has changed significantly since then, thanks in part to additional federal funds and a more favorable revenue outlook.

The budget still cuts human services by an estimated $23 million, education by $48 million, and cities and towns by $16 million. The rest of the budget is a combination of smaller cuts in a variety of areas, a tax on hospitals and the addition of a new lottery game to bring in more revenue.

The Appropriations Committee approved adding Megamillions -- which is similar to Powerball -- to the state's array of gambling options, which will generate about $1.5 million a year. The committee rejected the addition of keno terminals to bars and restaurants.

On Sunday, the committee discussed some of the finer details of the Department of Health and Human Services budget. Those talks included changes to state regulations to reduce costs for nursing homes and a 4.5 percent cut to agencies that oversee home placements for adults with mental retardation.

Although many human services cuts have been reduced or eliminated, one group that provides services for those with mental illness remains concerned.

Carol Carothers, executive director of the Maine chapter of the National Alliance on Mental Illness, said her agency could still see a $100,000 cut. Also, case management services for the mentally ill would see a 4 percent cut in funding under current budget proposals.

"Mental health services have been cut over the last six years again and again," she said. "The restorations are wonderful, but you're restoring to a system that is so fragile and compromised."

Cuts are also proposed for residential services for those with substance abuse problems.

In an earlier round of voting, the committee also changed a proposal from Gov. John Baldacci that would have required the state's four natural resource agencies to merge certain functions.

Lawmakers instead favor requiring the next governor to take action to move oversight of all state boat launches to a single agency; have agency staff move to central offices to improve communication and try to align districts to increase collaboration.

Lagging revenues and cuts to cities and towns mean Augusta and Waterville are each expected to receive $600,000 less in funding for fiscal year 2011, a number that grows to $2.2 million in Portland, according to the Maine Municipal Association.

The proposed state budget does not increase the sales or income tax.

It does include a one-time 0.12 percent assessment on net operating income of hospitals to generate $4.2 million in revenue for the state.

Items that remained on the table late Sunday included whether to restore longevity pay for state workers, a controversial cut imposed last year. Also, the governor recommended the elimination of three additional unpaid days off for state workers, but the committee had yet to act on that late Sunday.

Still pending are votes on how much money to set aside for debt service, and how much money to put into the state's rainy day fund.

Once voted out of committee, the bill will move to the House, where votes could come later this week.

Susan Cover -- 620-7015

scover@centralmaine.com