AUGUSTA — Republicans are pouncing on a new state budget report that shows a projected $1 billion gap between state revenues and expenditures.
Every two years, the Department of Administrative and Financial Services issues a report to start the new two-year, state budget process.
In a letter accompanying the report, Commissioner Elaine Clark explains that the “structural gap” shows the difference between funding requirements in state law and projected revenues.
She cautions that “this report should not be considered an accurate reflection of an actual budget shortfall facing state government.”
But Republicans see it differently.
“This billion-dollar budget hole is exactly what Republicans warned about — Democrat control of Augusta the past eight years has led to out-of-control spending through partisan budgets and now the bill has come due,” Senate Minority Leader Trey Stewart (R-Presque Isle) said in a statement.
The report comes as Republicans and Democrats battle for control of the Legislature and governor’s mansion. Gov. Janet Mills, a Democrat, is leaving office after eight years and all 186 seats in the state Legislature are up for grabs.
Mills’ office did not respond to a request for comment on the GOP criticism of the state budget.
In her report, Clark also projects a $256.7 million gap in funding for road and bridge projects.
She notes that an updated revenue forecast is due out Dec. 1, which will likely change the baseline number the new governor has to work with. After taking office, the new governor has until February to present a new two-year budget to the state Legislature.
Unlike the federal budget, the Maine Constitution requires the state budget to be balanced. It will cover July 1, 2027-June 30, 2029.
In her analysis, Clark said the general fund shortfall is being driven by the two most expensive budget lines in state government — education and health and human services.
“Major cost pressures include the 55 percent education commitment, preschool special education, and MaineCare costs, including provider rates, hospital and community-based services, Medicare Part D and changes in the state’s Medicaid share,” she wrote.
Her projections assume the continuation of the state’s commitment to funding 55% of the cost of local education and allocating 5% of taxes collected to local cities and towns.
She notes that the new governor and new Legislature will have the power to decide “the policy choices that may ultimately be made.”
Source: spectrumlocalnews.com
