Due to what many are calling a “rosier” economic outlook, Governor Baldacci has released a proposal for a revised budget. Baldacci restored $78.7 million in cuts today. “From the beginning, I have been committed to presenting a fiscally responsible plan to balance the State budget,” Governor Baldacci said. “The slight improvement in the economy and the increased assistance from the federal government allow us to address legitimate concerns in human services and education while also making investments in Maine’s long-term financial health.” Where does the money for the cuts come from? $50.9 million come from a Revenue Forecasting Committee forecast 
upgrade. Changes in the federal Medicare program make up the other $27.8 million. Two of the departments that faced the largest cuts, Health and Human Services and Education, received the greatest funding increases. DHHS received $37 million, while K-12 $20 million.
Governor Baldacci praised the bipartisan effort in finding budget solutions. Baldacci assured Mainers he would continue to find money saving efficiencies and again vowed not to raise taxes. “Maine families and businesses cannot afford a greater burden,” said Baldacci. A plan from Baldacci focusing on job creation will be unveiled next week. “We have an opportunity to put people back to work, to create jobs and grow our economy,” Governor Baldacci said. Since government can only create government jobs, it will be interesting to see where this investment plan is targeted and what impact it will have.
Republicans were pleased by the budget adjustments, manly because the budget changes alleviate the need for local property tax hikes. Education Commissioner Susan Gendron was pleased by the changes as well. “They asked the governor to put all of whatever he could do for general purpose aid in FY ’11 to help them prepare for a significant clip that we’re projecting in FY ’12, which is where I think we will see the most significant changes,” Gendron said.
Others are still unhappy with the budget. Lizzy Reinholt of Maine Can Do Better believes the government should take a a look at revenues (ie. raising taxes) along side cuts to balance the budget. Maine Education Association President, Chris Galgay, told WCSH6 he is, “happy to see that the Governor will move heaven and earth to save [the sardine cannery workers] jobs, but we’d like to see him put a little more effort into saving dedicated educators’ jobs in this state.
As we have stated many times, there is no money. Somehow the state continues to find hidden blood in the turnip. Once federal money dries up, any spending based on those funds will need to be cut as well. If economic times were actually rosey, raising taxes to fill budget holes might be a viable option – or not needed at all. In this relatively poor state and in this economic climate, the political will to raise taxes is nearly non-existent. For the time being, this is the way things are. Governor Baldacci is dealing with the issue as best as he can. Those looking for even a greater reduction in cuts will likely go wanting, despite the impact of less funds.
Baldacci assured Mainers he would continue to find money saving efficiencies and again vowed not to raise taxes. “Maine families and businesses cannot afford a greater burden,” said Baldacci. That is a bold faced lie. He is raising taxes. Just not state taxes. Instead he is raising property taxes. Cities and town are faced with the decision of plowing the roads or educating the children. By not considering revenues, he is pitting the senior citizen against the young family, creating divisions within towns as they struggle with the impossible choices. Do you want thirty students in your child's class, or would you like your road fixed? What kind of choice is that? He is out of touch with the reality of the fiscal responsibilities of government.