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March 18, 2008

Guv orders $27 million spending cut

Governor John Baldacci yesterday evening said his administration was developing a second budget curtailment that would require lawmakers to reduce state spending by $27 million before April 1, the beginning of the current fiscal year's fourth quarter.

Baldacci said this budget curtailment, the second in recent months, is necessary for the state given current economic challenges nationwide, according to a press release. The first curtailment order, in December, required the state to cut $38 million.

A governor's curtailment can only be overridden by the Legislature passing a new budget, which lawmakers expect to do by April 1, according to the Bangor Daily News. Maine is bracing for an anticipated reduction in state revenues this year of $190 million.

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