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October 14, 2013

Politics & Co.

While the next legislative session remains months away, lawmakers and the governor recently provided a glimpse into impending political issues. As new staff in the governor’s office proposed millions in cuts to state government, lawmakers chimed in with bill titles targeting a wide range of issues.

Bill bulletin

Bills outlining tax changes and modifications to certain state economic development programs are among the list of 401 bill titles published by the Legislature earlier this month. Lawmakers will meet later in October to figure out which proposals will make the cut and be added to a list of 213 bills carried over from last session. The proposed bills include measures that would exempt taxes on fuel used in off-road commercial and construction equipment; impose a requirement that any state tax changes require a two-thirds majority; and require that companies disclose the amount and reason for legal settlements.

Budget cuts

The Governor’s Office of Policy and Management outlined nearly $33.8 million in cuts in a report issued in late September. The office recommended the deepest cuts in education spending, suggesting the state could save $9.6 million in the next two years through changes to the formula that determines the state’s share of education costs. In total, the report identifies $11.3 million in cuts that could be made with legislative approval this fiscal year and another $24 million for fiscal year 2015. See the full report at mainebiz.biz/opmcuts.

Let the bidding begin

The state is seeking bids for two, 10-year wholesale liquor distribution contracts, one for warehousing and distribution of liquor and another for marketing and advertising. Those deals will replace the current contract with Maine Beverage Co. The state expects the new deals will generate more than $592 million in gross profits. The state has set a Nov. 14 deadline for proposals.

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