State Budget

Gov. John BaldacciGranted, it’s little. Given all the budget woes the state went through this year, however, a small budget surplus was something for Gov. John Baldacci to brag about Monday.

According to a release from Baldacci’s office, the state finished the 2008 fiscal year with a General Fund surplus of $56 million, and a Highway Fund surplus of $2.5 million.

Of the General Fund surplus, $47.4 million was surplus revenue, $7.1 million resulted from lapsed account balances, and $1.5 million came from other adjustments.

“The year-end surplus is the result of a disciplined budget approach,” Governor John E. Baldacci said. “Maine faced a grim economic picture earlier this year that required the State to make many difficult decisions. That hard work has allowed us to finish the year in a good position. Unfortunately, high energy prices and a still-struggling national economy could further erode revenues in the next fiscal year.”

The House approved the Democratic version of the state budget 82 to 63 Wednesday evening. There are about 50 amendments being printed which will be taken up Thursday.

Republicans and Democrats have parted ways on the budget, which means…..well it could mean just about anything

As the budget battle continues, the AP is reporting that  Governor Baldacci has ordered state government to prepare for $27 million in spending reductions.