Governor John Baldacci says he will consider using money reserved in a budget stabilization fund to offset the revenue shortfall this fiscal year, according to a press release.
On Monday, the state’s Revenue Forecasting Committee doubled their projections of a revenue shortfall from $95 million to $190 million. State reserves in the budget stabilization fund are roughly $160 million.
Baldacci mentioned he spoke with President George W. Bush, asking him not to change Medicaid policies that reduces funding to states. “In the past, increased funding for Medicaid and flexible block grants have helped to stabilize the economy and protect vulnerable people during downturns,” he said in the release.