State depts to cut $200M from budget
State revenues in September came in $28 million below estimates, prompting Gov. John Baldacci to order state departments to cut $100 million a year from the two-year state budget passed a few months ago, according to Capitol News Service.
Sales and individual income taxes continued to be well under budget, according to a memo from State Budget Officer Ellen Schneiter. Ryan Low, commissioner of the Department of Administrative and Financial Services, has given departments two weeks to come up with suggested cuts, according to the Kennebec Journal. The deepest cuts are expected in the health and human services and education departments, the paper reported.
Low acknowledged that the $200 million agencies are being asked to cut from the biennial budget may not be enough if revenues continue to fall below estimates. After three months, state revenues are $42.3 million below projections, according to Capitol News Service. "We are very carefully watching the October revenue numbers to see if there is a trend," Low told the news service.
The Revenue Forecasting Committee is scheduled to meet at the end of November to update their April revenue projections.
Go to the Capitol News Service item, via the Bangor Daily News >>
Go to the article from the Kennebec Journal >>
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