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March 29, 2011

State lays out plan to fill budget hole

Officials from Gov. Paul LePage's administration yesterday released details on how the state will fund the $65 million shortfall in the current fiscal year budget.

The LePage administration has submitted a $64.9 million second supplemental budget bill to address the shortfall, according to Capitol News Service. Sawin Millett, commissioner of the Department of Administrative and Financial Services, yesterday outlined the state's plan to the Legislature's appropriations committee, according to MaineToday Media. The majority of the budget shortfall, about $61.7 million, is in the Department of Health and Human Services budget and is related to rising MaineCare enrollment and $30 million owed to the federal government for overbilling for MaineCare services. To fill the hole, Millett told lawmakers the state plans to use about $14 million in savings from unspent or leftover DHHS account balances, as well as $9.7 million in federal reimbursements for running the State Children's Health Insurance Program. Another $11 million will be paid off with funds found from existing programs across state government, according to the news company.

The federal government has agreed to waive reimbursement of the $30 million in MaineCare payments until after the fiscal year ends June 30. That money will come from the state's rainy day fund, and will be transferred in early July. A public hearing on the proposed supplemental budget will be sometime in April, according to Capitol News Service.

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