State Budgets: Maine Awaits Proposals to Address Looming Shortfall
December 29, 2008
To balance the current $6.26 billion 2008-09 biennial budget, Gov. John Baldacci (D) has proposed $140 million in budget cuts including $27 million in education, correctional officers, and drawing on $45 million in reserves. On January 9, Baldacci will discuss ways of addressing an estimated $838 million shortfall in the $6.82 billion 2010-11 biennial budget. He has said he wants to avoid broad based tax increases but businesses nevertheless worry that they will be targeted for tax and fee increases. A recent editorial notes that Maine has anemic population growth and is about to be surpassed by New Hampshire in number of residents. In November, Maine voters rejected a beverage tax to fund health care expansion.
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