Maine’s Baldacci plan eases budget cuts | Kennebec Journal

Despite increased revenues,

next year will still see reductions

AUGUSTA – Gov. John Baldacci proposed to alleviate some of the deepest cuts in the state budget Wednesday by providing additional funds to support human services and education.

A revised state revenue forecast that projects a $51 million increase in receipts this fiscal year and next, and additional federal money, combined to give the governor and the Legislature $78.7 million of breathing room.

“Despite today’s good news, we know that our economy is fragile and recovery is far from certain,” Baldacci said during a news conference in his office.

Baldacci continued to characterize state spending as frugal, saying the current two-year budget will be $5.6 billion – a modest increase from his first budget, seven years ago, that was $5.4 billion.

Even with the increased revenue, state lawmakers face a $360 million shortfall.

Click on the link for the rest of today’s story by Susan Cover in the Kennebec Journal.

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