State revenues in July come up short
Gov. John Baldacci wants state agencies to tighten their belts this fall to close a $23 million budget gap after July revenues fell $1.2 million below projections.
Baldacci on Friday ordered Acting Finance Commissioner Ellen Schneiter to send out new cost-cutting goals to all state agencies, according to Capitol News Service. Schneiter told the news service the new budget memos are due Sept. 1, and the governor will decide later that month whether to use his budget curtailment authority to reduce spending until state lawmakers can address the budget shortfall.
The state was originally looking at a $100 million budget gap until Congress earlier this month released more Medicaid funds to the states. Sen. Bill Diamond, D-Windham, the co-chairman of the Legislature's appropriations committee, told the news service that state agencies should hold onto the original $100 million in cuts they were told to make in case they are needed before the current budget year ends on June 30, 2011.
Go to the article from Capitol News Service >>
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