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December 21, 2009

Budget plan tackles $438M shortfall

By The Mainebiz News Staff

Cuts to education and health and human services are planned as part of Gov. John Baldacci's proposal to close a $438 million state budget gap.

The plan, announced Friday, addresses a $209 million gap in fiscal year 2010 and a $174 million gap in 2011, according to a press release from the governor's office. Cuts were biggest for K-12 and higher education, at $73 million and $16 million, respectively, and the Department of Health and Human Services, which will lose $67.8 million, according to the Kennebec Journal. Other cuts are planned for all state agencies and departments, municipal revenue sharing, and the Legislature and Judiciary, and it also reduces MaineCare reimbursement rates at critical access hospitals from 109% to 101%. The plan adds three government shutdown days to the 20 already approved and eliminates 44 state positions, most of which are currently vacant.

With the latest cuts, the state budget now sits at $5.5 billion, according to the release. The Legislature will review the budget plan next month.

Go to the article from the Kennebec Journal >>

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