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July 2, 2010

Budget hole leads to hiring, expense freeze

By The Mainebiz News Staff

An anticipated budget hole of up to $100 million has led Gov. John Baldacci to freeze state hiring and curtail expenses.

Yesterday, the first day of the state's 2011-2012 budget cycle, Baldacci signed an emergency order to freeze hiring on vacant positions and limit overtime, travel and other state expenses, according to a press release. Baldacci has signed similar orders every year since 2003.

The order comes on the heels of a U.S. Senate vote last week that nixed $85 million in expected Medicaid contributions to Maine, money already allocated in the state's budget. The budget hole could grow to as much as $100 million, state officials said this week. State agencies next week will begin recommending budget cuts that will be implemented if Congress does not approve the funding this summer or fall, according to the Kennebec Journal.

Go to the article from the Kennebec Journal >>

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