Governor Prepares Budget Curtailment Order

As the budget battle continues, the AP is reporting that  Governor Baldacci has ordered state government to prepare for $27 million in spending reductions. This latest order follows a $38 million curtailment on December 18. This curtailment is somewhat unusual because the Legislature is actually in session and should be dealing with this issue directly.  It would not be a far stretch to assume that the Blaine House team has taken the curtailment route because they need swift action, which is something the Legislature usually avoids.

Although the details of the order have not been made public, I think it is safe to say, since there are really on only two big pots of cash – school aid and services provided by DHS ---that these are the places that the Governor will have to go.  In the Governor’s press release he noted, “The struggling national economy is taking a terrible toll on most states,” Governor Baldacci said. “According to the New York Times, at least 25 states are facing budget shortfalls. Unemployment is creeping up, energy prices are sky high and the national economy is either in a recession or on the edge. We must be prepared.”

These “curtailments” will send a jolt through the Legislature, as the reality of cuts become all to clear. This will add another element of angst, uncertainty and acrimony to an already difficult Legislative session.