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March State update

The March issue of the Fiscal News is now available on the Office of Fiscal and Program Review’s web page through the following link: http://www.maine.gov/legis/ofpr/other_publications/fiscal_news/FiscalNews_2012_02.pdf.

This month’s issue includes the usual revenue, cash, heating oil price and MaineCare updates.  This issue also includes a summary of the Governor’s Second Supplemental Budget, LD 1903.

Posted in News.

Rep. Duchesne’s ‘parable’ speech on House floor livens debate over tax relief bill

AUGUSTA, Maine — Rep. Bob Duchesne, D-Old Town, has the perfect voice for giving speeches. He’s like a radio DJ on an oldies station. (which isn’t surprising given that he has an extensive radio background).

So you have to imagine in your head a smooth booming voice delivering the following remarks, which were made Tuesday night during debate on the House floor over LD 849, a tax relief bill championed by Republicans that failed to get enough support in the House.

“The fiscal conservatives in my district think we’re crazy. Currently, if there is an end-of-the-year surplus, the money is used to stabilize our Rainy Day Fund, which protects our bond rating, and pay down our $2-1/2 Billion Dollar unfunded actuarial liability, plus a few other long term obligations. This bill skims 40% of that money – 40% of the money that would pay down our debt…is swept.

So I took this debate to my town meeting in Hudson this weekend, and I put it to some of my conservative friends. It turns out if you ask constituents what we should do with a budget surplus – pay our debts and protect our bond rating…or lower taxes – every one of them said we should pay our bills first and defend our credit.

Men & women of the House, this is a parable of the three majorities.

There once was a story told that the majority party doesn’t pay its debts and jeopardizes Maine’s bond rating. The legend was that if there was ever extra money left over, that majority would spend it on partisan priorities. And, lo, the people were angry and elected a new majority.

But the second majority heeded not its own words, and swept 40% of the money that would have been used to pay its debts and stabilize the budget, and spent it on other priorities. And, lo, the people were amazed, and they were sore afraid, for they thought it unwise to reduce revenue before paying the bills.

And it came to pass that a third majority was elected, and it looked very much like the first. And when a budget crisis fell upon the land because of LD 849, the third majority erased the law, rebalanced the tax code by lowering the income tax and broadening the sales tax, only this time the reform package didn’t include car repairs. Then a feast followed. There was a fatted calf.

Seriously, everyone may want to check with their own constituents. We often say that government should be like households and not spend what we don’t have. But a responsible household pays its bills first. Mainers are now wondering if either party is capable of keeping its hands off a surplus.

I don’t want to tell my fiscally conservative friends in the body what to do, but you might want to table the bill long enough to discuss it back home and find out what the people really think. Then you can quietly commit this bill back to committee next week, where it can be ge…

Posted in News.

5th Graders from Thomaston Grammar School visit the State House

Lynn Snow’s class from TGS visited the Capitol today.  They asked interesting questions and seemed to enjoy it.  Sen. Rector and I certainly love having students see where we work.

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At the back is Ron Jones, Gov. Baxter, and me.

Posted in News.

Girls’ Day at the State House

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A terrific group of young women spent much of the day today at the Maine State House, learning about state government at the source, and plotting to get rid of us old guys.  Not a minute too soon.

Posted in News.

Gen. Libby

Adjutant General Bill Libby gave a terrific address to a joint convention of the 125th Maine Legislature on Thursday.  He’s retiring, and he will be missed. 

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Thanks are due him for his outstanding service during a long and distinguished career.

Posted in News.

Outrage over MaineCare

MaineCare is Medicaid in Maine.  In much of the program, there is 2-1 match of federal to state dollars.  An excellent editorial from the Lewiston Sun-Journal offers an alternative narrative from much of what has been in the news.

Posted in Issues, News.

Transparency, please!

Talking to you, Governor!  You PROMISED “the most transparent administration in Maine history” and now you want to block access to most all the documents created by your office while you are working for the people of the State of Maine.  Shame.

Posted in Issues, News.

Budget deal done. Next one will be scarier — and nastier.

I voted for the Governor’s supplemental budget to resolve a $100 million-plus shortfall in the MaineCare area.  There were a number of things wrong with his approach, but I supported it because of the incredible work of the Appropriations Committee and to make certain that providers were paid.

The Governor’s bullshit about closing schools or shutting down agencies was cruel and stupid.  But unlike him I believe in the idea that Government can make positive change.  A good summary of the situation can be found here.

But that’s behind us, now.  We have the rest of the current biennial budget to fix, and it won’t be fun.  My plea would be for honesty from the Governor in the next rounds.  I know, good luck with that.

Posted in Issues, News.

Health care: it’s not the same as welfare.

My friend and colleague Andy O’Brien from Lincolnville has written a piece in the Free Press on his experiences living in Taiwan and reflects on the Gov. LePage’s State of the State speech.  Well worth a read.

Posted in Linkage.

Maine Office of Program Review Summary

The Office of Fiscal and Program Review has produced a summary of the Streamlining Recommendations and FY 12 MaineCare Supplemental Budget (LD 1816).  The summary is posted on OFPR’s website and can be found under “Recent Releases” at this link:  http://www.maine.gov/legis/ofpr/.

Posted in About, Issues, News.