Baldacci orders $80M in immediate cuts
Gov. John Baldacci today issued an executive order directing state agencies to cut the rate of spending in the current fiscal year by almost $80 million.
The order, called a curtailment, is necessary so that the state finishes the fiscal year with a balanced budget. Earlier this month, the state's Revenue Forecasting Committee estimated that state revenue would fall by as much as $150 million below projections. The committee is scheduled to meet again Friday to further refine its projections.
"Our country faces a dangerous recession, and Maine, like a majority of states, must deal with declining revenues," Baldacci said in a press release. "Today's curtailment is the first of a series of steps we must take to bring spending in line with available resources."
Curtailment orders are temporary and allow the governor to reduce spending on programs approved by the Legislature until a supplemental budget can be passed to address predicted revenue shortfalls. Baldacci is expected to present a supplemental budget for fiscal year 2009 to the Legislature in December.
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