SENATOR HASTINGS SUPPORTS REPUBLICAN BUDGET

AUGUSTA –Maine is once again facing a budget shortfall and lawmakers are looking for ways to fill the gap. As one of only two states in the nation addressing a deficit, Maine legislators are struggling to create a budget for fiscal years 2008-2009.

With a two-thirds vote of the legislature needed to pass a budget, Republicans and Democrats will have to come to a compromise. At this point, the sides are about $100 million apart on a two year budget of over $6 billion. Republicans propose to balance the budget with reductions in spending. The Democrats are proposing about $103 million in new taxes to put the budget into balance.

Maine’s Republican legislators believe a successful budget should contain three key elements and have created a budget that reflects those principals. The Republican plan limits state spending, raises no taxes and creates a framework in which to build a stronger future.

In 2005, the Legislature passed LD 1, a measure that limits government spending at all levels. The Republican budget plan adheres to this cap and only allows for moderate growth of state spending. Given Maine’s current financial crisis, the State cannot afford to spend beyond its means and the Republican plan recognizes and addresses that fact.

As the second highest taxed state in the country Maine cannot afford a tax increase of any kind. Maine Republicans feel there is no reasonable argument in favor of a tax increase.

The biggest budget priority for Republicans is to create a sustainable budget framework with which to build a stronger economic future for Maine. Over the last few years spending on certain programs has rapidly increased causing budgets to inflate in order to keep pace. The Maine Republican plan looks to address the three largest areas of spending; education, Medicaid, and benefits for state employees and identifies ways to keep them affordable for Maine tax payers.

The budget proposal would change the way state employee benefits are handled and bring them more in line with their private sector counterparts, reducing the State’s share of State employee health insurance from 100% to 85%. The budget also reforms Maine’s Medicaid system by making it more affordable, but ensures benefits and services for Maine’s neediest people.

Realizing that all parts of the budget need to participate, the Republican plan eliminates raises for legislators and reduces the legislative budget by $1.4 million. And finally, the Republican proposal realizes additional savings by creating a procedure to rein in high administration costs in education without compromising education quality or local control.

“The Governor has proposed savings in education expenses of over $35 million through school consolidation. I believe we should take up the challenge to realize these savings, but not by the heavy handed mandated approach suggested by the Governor,” Senator Hastings said. “I’ve become convinced that the mandated –one size fits all – approach will not work, especially in rural Maine. We are working on an alternative proposal that provides more flexibility, allows for a greater local voice, and encourages consolidation where possible, through financial incentives.”

As Republican legislators move forward with negotiations they are poised to adhere to the three guiding principals in an attempt to craft a budget that will create a sustainable framework. According to Senator Hastings, “closing the budget gap is not going to be easy, we are at a point in the budget process where Democrats and Republicans need to compromise. There has to be some give and take on both sides. However, it is my sincere hope that we can find a way to put our finances in balance without yet another tax increase.”

Senator Hastings represents Senate District 13, which includes 14 towns in Western Maine. He can be reached in Augusta at 287-1505, at home at 935-3175 or by email at dhastings@hastings-law.com

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