Budget changes tackle $164M hole
A package including $250 million in budget changes released Friday aims to fill an expected $164 million budget shortfall for the next two years.
Included in the package is eliminating health care coverage for about 28,000 Medicaid-eligible adults as of Jan. 1, which is expected to save $37 million, according to MaineToday Media. It also includes repealing collective bargaining rights for child care workers, cutting the Maine Clean Election Act funds and proposes a number of changes to Gov. Paul LePage's tax cut plan. Cutting 259 vacant state positions would save $7.7 million. About $29.7 million would be taken from the state's rainy day fund, and another $16.8 million is anticipated in federal aid for a computer billing system, according to the news site.
The changes address a budget hole caused by lower-than-anticipated state revenues, increased demand for Medicaid, money owed to the federal government for improper Medicaid reimbursements and recalculated debt of the state retirement system.
LePage's administration released the package Friday, and the appropriations committee will hold a public hearing on Wednesday. The Legislature has until its June 15 adjournment to pass a budget for the next biennium, which begins July 1.
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