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December 28, 2012

Gov. LePage calls for $35.5 million in spending cuts

School districts and the Department of Health and Human Services will bear the brunt of Gov. Paul R. LePage's efforts to balance the state budget.

On Thursday, LePage issued a curtailment order to reduce state spending by $35.5 million in the current fiscal year, which ends June 30, 2013. The curtailment order will help to ensure that the state finishes the fiscal year with a balanced budget, as required by the Maine Constitution.

The Bangor Daily News reported that almost three-quarters of the cuts will come from DHHS programs and reduced state aid to public schools. The newspaper reported that $13.43 million in DHHS reductions include subsidies families receive for child adoptions and contracts that haven't been issued yet. The $12.58 million in education cuts will mean lower monthly payments to school districts across the state.

The newspaper reported that the University of Maine System will be reducing administrative expenses to meet its $2.5 million funding cut, while the Maine Community College System will take $724,000 in cuts that are expected to require reductions in faculty and course offering. The Legislature will have to cut $333,000 in operating expenses.

The Legislature's Appropriations Committee is expected to review the spending cuts within the governor's curtailment order next week, ahead of the full Legislature's new session that begins on Jan. 8.

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