Matt Jacobson for Governor | Jacobson tells Press Herald: Budget Proposal is Fundamentally Dishonest

Jacobson tells Press Herald: Budget Proposal is Fundamentally Dishonest

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Date: December 21, 2009
Author: Matt Weickenheiser; Portland Press Herald

Baldacci's budget fix frustrates candidates

Some say the governor's action fails to make needed structural changes in state government. By MATT WICKENHEISER, Staff Writer December 21, 2009Gov. John Baldacci has proposed a plan that plugs a $438 million hole in Maine's current two-year budget.

The midpoint for that biennium is July 1, 2011. Before that, in November 2010, voters will elect a replacement for Baldacci, who is barred by term limits from running for re-election.

So whoever is elected out of what today is a broad field of candidates will have to contend with how Baldacci's proposed budget cuts affect state government.

A number of those candidates commented on Baldacci's plan, which also must be worked on and approved by the Legislature.

Many, regardless of party, were unhappy that the budget plan didn't make structural changes in state government.

"What is missing from the budget is any thoughtful analysis – public analysis – of which programs are worth preserving and which are not," said Sen. Peter Mills, a Republican candidate from Cornville.

Methods to evaluate the effectiveness of programs and agencies within state government are lacking, Mills said, and the directive to establish them "really has to come from the chief executive."

Rosa Scarcelli, a Democratic candidate from Portland, also noted what she saw as a lack of a measuring stick for programs.

"As a result, we really have no idea if we're cutting good programs or services and leaving bad ones on the books, or are we just guessing?" said Scarcelli. "This is why we need better fiscal management so we know what's working and what needs to be cut."

Matt Jacobson, a Republican candidate from Cumberland, said he was disappointed in the proposal because of the "fundamental dishonesty" inherent in the process. First, he said, the revenue projections the budget is based on appear flawed. And Jacobson, like several candidates, took issue with the plan to rely on $35 million in federal money for Health and Human Services.

"We've budgeted for the federal government to come and give us more money. There is no bill before Congress to come and do that," said Jacobson, adding that he believes that a federal health reform bill would actually add to Maine's costs, but there was no recognition of that in the proposed budget fix.

Scarcelli also opposed using federal stimulus money to plug holes or "support programs that are likely unsustainable." The one-time money, she said, should be used for one-time purposes.

Bruce Poliquin, a Republican candidate from Georgetown, said to rely on possible federal assistance was irresponsible and the "financial equivalent of keeping our fingers crossed and hoping for the best."

"This was maybe a once-in-a-generation opportunity to really restructure how we govern ourselves, and our elected officials really missed the boat," Poliquin said.

A number of candidates said they were unhappy with what they saw as budgetary tricks to move money around. Eliot Cutler, an independent candidate from Cape Elizabeth, called the plan "really problematic."

"This budget just pushes the snowball down the road," Cutler said.

Making transfers between cash pools, delaying payments to towns and transferring money from one fiscal year to the next and then back again are all examples of "gimmicks," he said.

Cutler pushed one of his proposals: examining which programs in state government should be cut by using a process similar to the federal government's method for determining which military bases to close.

That would take politics out of the process, he said, and provide clear direction of what needs to be taken out of state government.

Lynne Williams, a Green Independent candidate from Bar Harbor, said she has proposed basing the annual budget on a five-year moving average. The average would be based on actual income, not unpaid taxes or fines – just what the state takes in. And that average would be the ceiling for the next year's budget.

"What that does is it evens out the cyclical, up-and-down nature of the thing," Williams said.

John Richardson, a Democratic candidate from Brunswick, said he sees the need for the cuts but would have done it differently. He would have set targeted budget numbers and asked state workers to reach those numbers. They are on the front lines and intimately understand their jobs, he said.

"They hold the keys to a better way of doing business," Richardson said.

Richardson and others also said any budget proposal also needs to include thoughts on growing the state's economy.

"The single biggest tax we're missing in the state is income tax," said Les Otten, a Republican candidate from Greenwood.

The state, Otten suggested, has been focused on trying to maintain jobs in the public sector, not create jobs in the private sector. The state needs to look at what's standing in the way of job creation, Otten said, including tax policy, health insurance costs, the lack of an energy policy and burdensome rules and regulations.

Steve Rowe, a Democratic candidate from Portland, raised the importance of maintaining the investments in critical state programs.

"While we must live within our means, we must also meet our constitutional commitment to protect the public, educate our children and care for our most vulnerable," Rowe said.

Senate President Elizabeth Mitchell of Vassalboro, a Democratic candidate, said the Legislature would closely examine the budget proposal and hold extensive public hearings. Throughout years of budget cuts, the Legislature has tried to maintain investments in research and development, energy, education and targeted work force development. That's still the case, she said.

It's important to look at the recession in the national and international light, she said, and figure out how to help small businesses here succeed and how to generally make the state prosper.

"We've got to position ourselves so we're stronger coming out of this recession than we were going in," she said.

Jacobson tells Press Herald: Budget Proposal is Fundamentally Dishonest

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