PORTLAND — A new analysis released today by the Maine Center for Economic Policy, a liberal advocacy group, concludes that a “cuts only” approach to the state’s projected $1.17 billion revenue shortfall could undermine economic recovery.
The publication, “Maine’s Balancing Act: Maintaining Services, Investing in the Future,” was written by MECEP Associate Director Garrett Martin and MECEP Fiscal Policy Analyst Dan Coyne.
“The last thing our economy needs is more people out of work,” the authors said. “Slashing over $1.1 billion from the budget for 2012-13 could cost as many as 25,000 lost jobs. With more than 100,000 people already unemployed or underemployed in Maine as a result of the recession, such additional job losses would be devastating and take years to recover.”
Because most state revenues fund salaries, contracts and purchases, drastically reduced state spending during a recession will have a “ripple effect” of private sector job losses, the report warns.
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