AUGUSTA, Maine (AP) Democratic Gov. Janet Mills on Thursday signed a curtailment order to address a projected revenue shortfall caused by the pandemic.
Her order curtails the General Fund by $221 million and the highway fund by $23 million but avoids deep program cuts and layoffs of state workers, and keeps the state’s $259 million “Rainy Day Fund” intact, Mills said.
Congress and President Donald Trump must act immediately, the governor said, to provide additional aid to state and local governments “to preserve critical services for Maine people and chart a full economic recovery.”
In July, the revenue forecasting committee projected a $528 million revenue shortfall in the General Fund for the two-year budget ending June 30, 2021.
The curtailment order replaces $97 million in state spending with one-time federal relief and adopts about $125 million in savings and efficiencies across departments. The latter includes savings from higher Medicaid reimbursement rates included in the CARES Act.
In 2021, the governor would seek legislative approval for $130 million from efficiencies and higher Medicaid reimbursements, while also requesting $70 million in proceeds from the state liquor store operation.
Also included in the curtailment order is approximately $23 million in savings to address the shortfall in the highway fund. An additional $17 million of highway fund savings would require legislative approval.
