Guv orders $150M in cuts in one week
Gov. John Baldacci yesterday ordered state agencies to cut $150 million from current spending in one week, as state revenues continue their decline.
After the state's Revenue Forecasting Commission and Consensus Economic Forecasting Commission on Monday projected state revenue would fall by as much as $150 million for fiscal year 2009, Gov. Baldacci issued the curtailment order, which is temporary and allows the governor to reduce the rate of spending until a supplemental budget can be passed to address the predicted revenue shortfall this fiscal year.
Gov. Baldacci will consider whether to convene a special legislative session this month to make cuts he cannot under the budget curtailment law, or to wait until December for the newly elected legislators to tackle the cuts, according to Capitol News Service.
Last month, Baldacci also asked the Legislature, state agencies and the judicial branch to identify ways to cut spending by 10% to help close an anticipated budget gap of $500 million for the 2010-2011 biennial budget, which begins July 1, 2009, according to the Kennebec Journal. Baldacci said some of those ideas could be passed to take effect this year, the paper reported.
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