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State Facing A Major Spending Gap

State Facing A Major Spending Gap

Photo: 560 WGAN Newsradio


AUGUSTA, Maine (AP) — Maine’s next governor could face a half-a-billion dollar spending gap.

Maine estimates revenues won’t cover $504 million in potential spending between mid-2019 and mid-2021. Lawmakers and Republican Gov. Paul LePage’s successor will ultimately make spending decisions.

LePage entered office facing a $774 million gap. That gap shrank to $165 million for the two-year budget cycle ending June.

His administration estimates voter-approved Medicaid expansion will cost $180 million and denies projected annual savings of $25 million.

LePage says it’d cost $213 million to send five percent of tax revenue to municipalities starting July. Maine under LePage temporarily cut municipal revenue sharing to two percent.

He says it’ll cost $180 million to finally cover 55 percent of school costs as voters demanded in 2004.

LePage warns surplus revenue won’t close the gap.

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