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January 14, 2013

LePage unveils $6.3B budget of cuts, patches

Gov. Paul LePage on Friday unveiled a $6.3 billion budget proposal that Finance Commissioner Sawin Millett has called one of the most difficult he's worked on in decades of state service.

Cuts and reserve funds make up a large portion of the strategy to balance the state's books over the next two years, according to the Bangor Daily News.

Education funding would remain flat over the next two years, at a level set by a $12.4 million cut LePage made in December as part of a $35.5 million curtailment order to cover the state's short-term deficits.

The proposed budget also includes a complete suspension of the revenue sharing program for Maine municipalities, which would save the state $98.9 million in funds usually distributed to cities and towns. The governor's budget proposal will move on to the Legislature following Friday's debut.

In a written statement, LePage attributed the revenue sharing cut to the tough economy and committed to restoring the assistance to municipalities as the economy improves.

The budget also aims to plug a $112 million hole in the Department of Health and Human Services budget through a plan that includes tapping $40 million in budget stabilization funds and $17.1 million in other state funds, according to the Kennebec Journal.

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