SENATOR SMITH SUPPORTS REPUBLICAN BUDGET AND SEEKS GREATER CUTS IN FUTURE

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 dealing with a deficit, Senator Douglas Smith calls the Republican proposal a responsible plan that deals with the immediate budget issues, long-term budget shortfalls, and positions Maine for future financial success.

Maine’s Republican legislators believe a successful budget should contain three key elements, and have created a budget that reflects those principals. The Republican principles; limited state spending, no new taxes and a framework in which to build a stronger future; have led to their responsible affordable funding plan.

In 2005, the Legislature passed LD 1, a measure that limits government spending at all levels. The Republican budget, in keeping with the first budget principle, 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-the Republican plan recognizes and addresses that fact.

As the second highest taxed state in the country, Maine simply cannot afford a tax increase. The Governor’s budget proposal calls for $131 million in tax increases with the Democratic proposal including $103 million. The second Republican principle, no new taxes, supports the Republican belief that there is no reasonable argument in favor of a tax increase.

The biggest budget priority for Maine Republicans, and the third budget principle is to create a framework in which to build a stronger future. Over the last few years, spending on certain government programs has rapidly increased, causing government to grow in order to keep pace. The Maine Republican plan looks to address the three largest areas of spending; education, Medicaid and taxpayer funded benefits for state employees; and identifies ways to keep them affordable for Maine taxpayers.

With a 2/3rds of the Legislature needed to pass the budget, Republicans are in position to influence the outcome of the budget process, and have taken up these issues as a way to ensure a more affordable and sustainable future for Maine’s citizens. Their budget proposal would change the way state employee benefits are handled and bring them more in line with their private sector counterparts. The current benefit structure has created over $7 billion in debt. The Republican budget also reforms Maine’s Medicaid system by making it more affordable, but ensures benefits and services for Maine’s neediest people. Finally, the Republican proposal would realize additional savings with a procedure to rein in high administration costs in education without compromising education quality or local control.

“The cost of education is far too high given the declining student enrollment, but some of the school consolidation proposals that have been offered are too drastic. By consolidating administrative services, we can achieve efficiencies, save money and retain local control,” Sen. Smith said. “Our plan provides a balanced approach to the school administration issue.”

As Republican legislators move forward with the budget process they remain committed to these principals; limited state spending, no new taxes and to put Maine on track to a secure financial future. “This plan puts us in a good position going forward,” explained Sen. Smith. “But, my hope is that in the near future we will be looking at cutting taxes, not just staving off increases. When we begin cutting taxes Maine will truly be poised for economic growth and job creation.”

Sen. Smith represents Senate District 27, which includes all of Piscataquis County and several towns in Penobscot and Somerset Counties. He can be reached in Augusta at 287-1505, at home at 564-8819 or by email at dsmith@kynd.net.

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