Martin’s inside look at the state of state government
(D-Eagle Lake)
Over the past few months I have heard from many constituents, businesses and organizations about the state’s budget. The range of people who have contacted me include those living and working in nursing homes and hospitals, mental health and substance abuse councilors, teachers, and those receiving home health care services. People are worried and concerned about how the Governor’s proposed budget, which calls for a reduction in spending by $438 million, will affect them and their communities.
As a member of the Appropriations Committee, my colleagues and I are faced with making difficult choices in order to ensure that our government is as cost effective and efficient as possible. With state revenues falling by $1.15 billion dollars in the last 12 months, we have been forced to make significant cuts in order to cope with reduced revenues. These cuts have been painful for everyone involved, and have especially been felt by those receiving services, including children, the elderly and those with disabilities.
This task has been made harder since many state programs and services were substantially reduced during last session, while at the same time, more people need these services due to the failing economy. For example, the Department of Health and Human Services’ caseload in MaineCare, Maine’s Medicaid program, has increased by 120,000 in the last eight years, yet they have 300 fewer employees since 2005.
There has been talk that state government is bloated and that wasteful programs remain. In fact, during the last session, we cut $556 million from the budget, making it the first time since 1974 that a budget was smaller than the prior year’s. As a cost-saving measure we combined state agencies and departments, including the Bureau of Developmental Services and DHHS, school administrations, and county and state corrections facilities.
We have examined state government and during the last seven years, eliminated 1,000 positions, about 9 percent of the workforce. Furthermore, state workers are subject to 10 unpaid days per year for two years, have lost pay raises and are now required to pay a portion of their health care. These provisions will cut spending by nearly $33.8 million over the biennium.
While at the same time we’ve cut state government, we are also working hard to promote economic and job development while managing our tax burden. The Pine Tree Development Zone program was expanded, in order to offer more eligible businesses the chance to significantly reduce or eliminate state taxes for up to ten years. The phase out of the Business Equipment Tax began in 2007 for older equipment and we have continued the Business Equipment Tax Reimbursement Program to encourage investment in Maine.
As a result of these measures, including our expansion of the Circuit Beaker program to help those affected by high property taxes, the Tax Foundation, a conservative organization, found that Maine’s state and local tax burden has fallen from a high of fifth nationally in 2005 to 15th in 2008.
Recently there have been signs that we are slowly beginning to move out of the economic recession, which could lessen the impact of these cuts. My colleagues and I on the Appropriations Committee will continue to work together, to balance the long-term impact of these cuts, while at the same time working to ensure that we are setting policies that will make Maine’s future a better one.
