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October 14, 2008

Guv orders 10% cuts

The governor Friday asked the Legislature, state agencies and the judicial branch to identify spending reductions of 10% in anticipation of budget shortfalls.

The cuts will help close a budget gap already estimated at $500 million for the 2010-2011 budget, which lawmakers will need to balance in January, according to the Kennebec Journal. The 2010-2011 budget begins July 1, 2009.

The governor has also asked Finance Commissioner Ryan Low to draft an emergency curtailment order that would require further spending cuts in state agencies. In late September, Baldacci ordered state departments to cut their budget requests by 10% after requests came in for $655 million more than the state can afford in its next two-year budget.

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