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August 25, 2011

LePage introduces new budget process

Gov. Paul LePage's administration has unveiled a new budgeting process for all state departments that aims to better prioritize state spending.

The so-called "zero-base budgeting" directs state agencies to examine and justify all expenditures as if they were starting from zero, according to MaineToday Media. The current system, called "incremental budgeting," requires agencies only to justify additions or subtractions to their budgets. LePage said the new process will help departments better identify where resources should be allocated, instead of simply working off a previously established baseline. Department heads are being asked to begin using the new system as part of next year's supplemental budget process.

The process change is not related to the work of a task force ordered to find $25 million in savings to fill a hole in the $6.1 billion biennial budget by Dec. 15. LePage previously asked state agencies to identify $100 million in cuts as the state anticipates cutbacks in federal funds.

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