Governor John E. Baldacci today issued an executive order directing State agencies to cut the rate of spending in the current fiscal year by $63.1 million.
According to Baldacci’s office, the order, called a curtailment, will help ensure that the State finishes the fiscal year with a balanced budget. Owing to the national recession state revenues have not met expectations during the current fiscal year, falling roughly $93 million below budget to date for fiscal year 2010.
Early estimates suggest State revenues for fiscal years 2010-2011 could be under budget by $400 million or more. The State’s Revenue Forecasting Committee meets today to revise its projections. A final report is due by Dec. 1.
“Earlier this year, we passed a bipartisan budget that reduced State spending by $500 million, making it the first budget in at least 35 years that was less than its predecessor,” Baldacci said. “It’s clear now that we will have to do even more.”
“Today’s curtailment is another step to reduce State spending. In December, I will submit budget revisions to the Legislature that will make the additional cuts necessary to keep the budget balanced, as required by Maine’s Constitution and law,” Baldacci said. “I will not support increased taxes to close the budget gap.”
Under State law, the Governor has the authority to reduce spending on programs approved by the Legislature with a curtailment order. The curtailment order is temporary and serves to reduce the rate of spending until a supplemental budget can be passed to address the predicted revenue shortfall. The curtailment order applies only to the current fiscal year.
Like Maine, at least 42 states have had to make additional spending cuts after passing their budgets. Even as the recession has begun to end on the national level, States continue to struggle.
In 2009, States had to close budget gaps of $72.7 billion dollars. In 2010, the number is already $113 billion dollars – and growing.
