Highlights of the FY08-FY09 Biennial State Budget
The
$6.3 Billion two-year budget will fund state operations beginning on July 1, 2007
through June 30, 2009. The FY08-FY09 was passed with strong bipartisan
support in the House and Senate, easily exceeding the two-thirds requirement. The budget was balanced without raising taxes
and remains under the spending cap.
It
is important to note that most increases within the budget go to K-12 education. This means local voters can now use
this money either to reduce local property taxes, or to improve local schools. These limited increases also help offset
skyrocketing health insurance and energy prices, which impact government services even more than most other sectors of the
economy.
This
budget upholds our Maine values and:
Ø Promotes long-term fiscal stability by streamlining government overhead while maintaining services
Ø Ensures opportunity through a quality education
Ø Protects our public's health and shared quality of life
Promoting Long-term Fiscal Stability:
Controlling spending, increasing accountability, and streamlining government systems.
This
Budget:
Ø Controls spending by flat funding nearly 25 state agencies.
Ø Cuts funding for the Legislative budget by $1.35 million.
Ø Establishes a commission to find greater efficiencies in state government and in state contracts.
Ø Increases enforcement for tax evaders to ensure that everyone pays their fair share.
Ø Controls spending in MaineCare by the adoption of managed care, clinical care management and standardization
of rates.
Ø Increases enforcement of “Third Party Liability” to ensure that private insurance pays
before MainCare.
Ø Supports the “PHIP” program to ensure that more people receive employer based rather than
MaineCare, where this is cost effective.
Ø Takes steps to replace the MeCMS computer system for the MaineCare program with a fiscal agent.
Ø Reorganizes Maine’s school administrative units
to cut unnecessary spending and improve classroom results.
Ø Requires the Department of Corrections to create a sustainable plan for Maine’s
prisons system.
Ø Consolidates all information technology purchases and maintenance.
Ø Reorganizes the Department of Health and Human Services and the Department of Education to improve
efficiency.
Investing in Maine’s Future: Ensuring opportunity through a high quality
education and investing in Maine’s small businesses.
This
Budget:
Ø Meets Mainer’s highest priorities by providing an additional $256 million for K-12 education
and will reach 55 percent of statewide education funding by FY09.
Ø Increases Higher Education funding in order to allow 500 students to enroll in the Community College
Ø System and reduce the tuition rate increase at the University
of Maine System to less than 10 percent.
Ø Invests in the Maine Economic Improvement Fund, affiliate with the University System.
Ø Accepts the Center for Deaf and Hard of Hearing, as part of GPA
Ø Accepted a reorganization of the Department of Education
Ø Provided additional funding for the Maine Downtown
Centers, Small Business
Development Centers, and Pine Tree Zone Expansions.
Ø Invests $4 million in the Maine Technology Institute to target cluster development.
Ø The budget enacted by the legislature also rejected several changes in school funding put forward by
the Governor:
o Rejected a proposal to increase Student to teacher ratio
o Rejected a proposal to expand laptops in high schools
o Rejected proposal to cut extra and co-curricular activities
Protecting the Health and Safety of Maine People: Maintaining
a strong social safety net and improving health of Maine people.
This
Budget:
Ø Addresses critical needs for Maine’s long-term
care, home based care and nursing homes.
Ø Increases funding for domestic violence prevention efforts.
Ø Increases funding for school based healthcare and school breakfast programs.
Ø Rejects further cuts to the “Non-Cats” population in MaineCare – Preserving health
insurance coverage for 19,300 of Maine’s poorest residents.
Ø Rejects a proposal for co-pays and premiums in MaineCare, that would have effectively denied coverage
Ø Rejects a proposal to take $20M out of State Employee Health Care.
Ø Approves funding for the low-cost drugs for the elderly program [DEL].
Ø Rejects proposals to raid the Fund for a Healthy Maine
Ø Accepted a proposal to institute a new clinical management program to ensure that clients are following
preventative health measures by monitoring treatments.
For an editorial commentary on the budget, please visit
http://bangordailynews.com/news/t/viewpoints.aspx?articleid=150737&zoneid=34
