A proposal has been submitted to Governor Janet Mills to balance the state’s budget and address a projected $528 million budget shortfall caused by the pandemic.
The plan was delivered Wednesday by Kirsten Figueroa, Commissioner of the Department of Administrative and Financial Services. It would utilize $97 million in available federal CARES Act funding, transfer about $70 million in liquor sales tax receipts, and introduce over $255 million in departmental cost savings.
In June, Governor Mills ordered all state departments to identify 10% cuts in spending for the current fiscal year, which ends in June of 2021.
A supplemental budget and related legislation that reserved more than $106 million was passed before the report was released by the Revenue Forecast Committee, which predicted the $528 million shortfall.
“While every state in the nation is facing significant budget shortfalls caused by the pandemic, our early actions have protected Maine’s fiscal stability in the short term and prevented significant impacts to the services that Maine people rely on,” said Governor Mills in a statement on Wednesday. “I will closely evaluate Commissioner Figueroa’s recommendations to further stabilize the state’s budget, and I urge Congress to provide additional aid to state and local governments, along with flexibility for funding already awarded, so that we can continue to preserve critical services for Maine people and chart a full economic recovery.”
The governor will review the proposal before issuing a curtailment order, which is one of the powers the governor has under the state constitution to keep the budget balanced.
