AUGUSTA — Democrats on the Legislature’s budget-writing committee on Tuesday proposed using $24 million of an anticipated surplus to boost funding for “priority” programs while directing $31 million into the state’s Rainy Day fund.

All told, Democrats are proposing to spend roughly $44 million – including more than $20 million from other sources – to fund about one-half of the 50-plus funding requests submitted by lawmakers from both sides of the aisle that are still in play.

But while Democratic members on the Appropriations and Financial Affairs Committee described their proposal as the starting point for negotiations, Republicans quickly voiced concerns about the amount of additional spending. The plan is also unlikely to pass muster with Gov. Paul LePage, who has called for directing more of the estimated $72.7 million surplus to the Rainy Day fund.

The Democratic proposal includes:

• $7 million to increase the salaries of state police, game wardens, marine patrol and other state-employed law enforcement officers.

• $4.9 million in additional funding for county jails.

• $1.1 million for programs to help police departments place drug users in treatment programs instead of jail.

• $750,000 to improve broadband Internet services in rural areas.

• $900,000 for Maine’s public campaign financing system.

All of the funding proposals were based on bills or requests already heard by the Legislature. Democrats also pointed out Republicans were the authors behind the majority of the funding requests included on the Democratic list, a fact that they hope will sway some of their Republican colleagues.

“We have tried to address the needs that seem to be of concern to folks on both sides of the aisle,” said Rep. Peggy Rotundo, D-Lewiston, the House chairwoman of the committee. “We have tried to do that in a fiscally responsible way, making sure that there is a significant chunk of money that does go the Rainy Day fund. So this is just the beginning. This is our attempt to start a conversation.”

ENTHUSIASM UNEVEN

Members of the Maine Revenue Forecasting Committee said last month that they expect $72.7 million in additional General Fund revenue through the end of the current two-year budget cycle in June 2017. LePage initially called for funneling all of that money into the state’s Budget Stabilization Fund – also known as the Rainy Day fund – which is used to cover revenue losses during economic downturns but is also frequently tapped by politicians to pay for other budget priorities.

Lawmakers already dipped into that projected surplus to pay for the “tax conformity” bill that passed earlier this year, reducing the size of the anticipated surplus to about $55 million. But while Democrats have been calling on the LePage administration to offer a supplemental budget, the governor and his Republican counterparts have thus far expressed little to no interest.

Several Republican members of the appropriations committee were less than enthused after reading the Democrats’ list of priorities.

Sen. Roger Katz, R-Augusta, pointed out that Democrats are actually proposing $44 million in additional spending after adding up programs funded by other sources, including the federal government.

“Clearly we need to do a modest amount of spending,” Katz said. “This package calls for $44 million of what I see as new spending at a time when we have a one-time revenue projection increase. And this $44 million in new spending will go on indefinitely into the future.”

MORE OPPOSITION

Rep. Jeffrey Timberlake, R-Turner, bristled at suggestions that he should support the additional spending requests because they were originally suggested by Republican lawmakers. Timberlake said House Republicans have made clear that they will not support new spending and that any surplus should go into the Rainy Day fund – a point also made by House Minority Leader Kenneth Fredette on the chamber floor Tuesday.

“I don’t care if (requests) were put in by me or by anybody else,” Timberlake said. “I don’t think this state … has the money that it should be wasting at this point in time.”

LePage’s office did not respond to a request for comment on the Democratic proposal Tuesday evening.

But the Department of Administrative and Financial Services accused the Democratic committee members of attempting to “raid” $9 million in education funds by tapping into $11 million in surplus general purpose aid for education. Rather than a surplus, that money is used to cover financial obligations carried across fiscal years, including the education costs borne by the state for children in foster care.

“The LePage Administration is currently reviewing the AFA Democrats’ proposal to identify other careless misrepresentations and verify the existence of identified funding mechanisms,” the department said in a press release.

 

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