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Gov. LePage Unveils "Jobs Bill" Budget
02/10/2011   Reported By: A.J. Higgins

The details were fuzzy, but the central theme of Gov. Paul LePage's budget address was crystal clear: Maine can no longer afford to draw up budget plans based on borrowing and promises. LePage hopes to fund transportation projects by reducing benefits to state employees, while increasing aid to education and reforming the state's pension system. And while the governor touted his budget as a "jobs bill," some Mainers are skeptical that it will help those who are struggling the most.

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Gov. LePage Unveils "Jobs Bill" Budget Listen
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First and foremost, Gov. Paul LePage says his budget plan will provide welfare protections for the elderly, the disabled, the mentally ill and veterans. But as far as everyone else is concerned, "Those who can work, we will simply ask them to get a job," Lepage said.

At times sounding more like a campaign stump speech than a budget address, LePage used much of his 40-minute address to the Legislature to reinforce his long-held assertions that Maine makes it too easy get on welfare, and stay on welfare.

In addition to requiring welfare recipients with drug offenses to undergo random drug testing, LePage says he will end the state's policy of providing state benefits to newcomers the moment they arrive in Maine.

"Maine is one of just a few places in this country that offers welfare on day one for legal non-citizens," he said. "Our budget saves $20 million by eliminating instant eligibility for welfare benefits and sends the message that work and independence are what we expect and what we want in the state of Maine."

But the governor's message also provided some surprises. He plans to provide $63 million more for local k-12 education and for higher education too. He will continue to pay down the state's debt to hospitals.

His plan includes no large-scale lay-offs of state employees, which many expected, and the governor went as far as to include a plan to reduce the top income tax bracket from 8.5 to 7.9 percent. But what surprised even some Republican lawmakers was LePage's stated opposition to any and all bond packages for the next two years.

"We plan to use savings out of the Department of Transportation and General Fund rather than bonds to make infrastructure investments," he said. "And we have no plans to borrow in order to finance land acquisitions, facility improvements or anything else in the next two years."

"I'm willing to take a look to see if there might be room for modest bonding on basic infrastructure, such as roads and bridges," says state Senate President Sen. Kevin Raye. "If the governor doesn't support it, frankly, in the end, he's not going to sign it and it's not going to happen. But I'm hoping that we can have a conversation about all these areas in the budget."

Despite the governor's carte blanche opposition to bonding, Raye, a Washington County Republican, gave LePage high marks for setting the right tone by providing a plan to lower the state's pension costs by a half-billion dollars over the course of the budget cycle.

Raye and House Speaker Bob Nutting were also pleased with the governor's pledge to provide more money for local schools. Nutting says LePage struck just the right balance.

"I thought the governor's speech went very well," Nutting says. "I thought it was a balance between informing the citizens of Maine that we've got some tough times ahead, but giving us hope for the future, at the same time preserving education and increasing jobs and protecting the people who are truly needy."

'It's unfair, I think, to be overly critical at this point," said Sen. Barry Hobbins, of York County, who serves as Senate minority leader. Democrats like Hobbins were muted in their criticism of the governor's budget. He and House Minority Leader Emily Cain hope the current spirit of bipartisanship in the 125th Legislature will continue into the deliberations over the tax and spending package to allow minority Democrats an opportunity to help shape the plan so the Legislature can pass it with two-thirds support.

Cain says all sides should refrain from drawing lines in the sand at this stage of budget process.
"Just like it's not responsible for the governor to be throwing down ultimatums on day one, it's not responsible for us to be doing that either," she says. "That being said, we're going to keep a careful eye on issues related to the safety net, issues related to protecting the vulnerable people in the state of Maine, and also really digging in beyond the rhetoric on the tax proposals that he put forward. Again it sounds good, the things he said, but Democrats have been pushing for comprehensive tax policy changes for a long time."

Precise details on the governor's budget are expected to be released Friday.



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