State reserves drained, unemployment up
The state has exhausted its budget reserves and the recession is continuing to drive up Maine's unemployment rate, state officials told a legislative panel yesterday.
Revenues were $43.4 million under budget for fiscal year 2009, forcing the state to use up the $26.2 million remaining in reserves, the Bangor Daily News reported. Controller Edward Karass urged the Legislature's Appropriations and Financial Affairs Committee, and Gov. John Baldacci in a separate letter, to make replenishing the reserves a top priority. Yesterday's meeting was the first of two the committee is holding this week as it seeks to find at least $80 million in savings in the current two-year budget.
Also Wednesday, Laura Fortman, commissioner of the Department of Labor, said Maine's unemployment numbers continue to rise but the rate appears to be slowing, consistent with national trends, the paper reported. Maine's jobless rate was 8.5% in June, compared to 5.2% in June 2008. Fortman said her agency has also improved its handling of the large volume of calls from people seeking unemployment assistance.
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