Governor Reacts to Revenue Forecasting Committee
Press Release
Governor Reacts to Revenue Forecasting Committee
Governor John E. Baldacci today released the following statement regarding the Revenue Forecasting Committee's findings.
"The news today from the Revenue Forecasting Committee confirms our concerns. The national economy continues to slow, and Maine has not escaped the impact," Governor Baldacci said.
"We began a process earlier this month in preparation of a downturn. I asked every department and agency in State government to prioritize the programs and services they provide. Next week, I will submit a plan to the Legislature that will make adjustments to balance the budget," Governor Baldacci said.
"I know many people are asking about higher taxes. I believe we must first have a comprehensive discussion about spending and our priorities as a State. We must be cautious about adding to the burden that Maine people and businesses must carry."
"I have been reluctant to consider using money from the budget stabilization fund to offset the earlier $95 million revenue downturn. Using one-time resources to resolve what appears to be an ongoing problem is not a real solution. However, with only a few months remaining to bring the current fiscal year back into balance, this option will be considered."
"The State faces a difficult budget, but we must not forget that every Mainer is facing increasing financial pressures. I will continue to work with the Legislature on a budget that protects the State's most vulnerable people and sets us on a path toward sustainable economic growth."
"I also spoke today with President Bush and the chairman of the Federal Reserve, Ben Bernanke, and stressed the importance of a strong response from the federal government to the weakening national economy. In the past, increased funding for Medicaid and flexible block grants have helped to stabilize the economy and protect vulnerable people during downturns. At the very least, the federal government shouldn't change policies or rules that shift costs onto states or impose new unfunded mandates."
The Governor spoke with the President and Bernanke during the National Governors Association Winter Meeting in Washington, D.C., where a bipartisan group of governor's requested additional federal assistance in responding to the national economic downturn.
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