Maine state budget (2008-2009)

Note: This article was last updated in 2009. Click here for more recent information on state budgets and finances.

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On May 1, 2009 Gov. Baldacci presented his budget to close the $129 million budget gap for fiscal year 2009 and the estimated $440 million gap in fiscal years 2010-2011.

The Maine State Legislature sets a biennial budget on odd-numbered years. The legislature met from December 3, 2008 to June 13, 2009. Gov. Baldacci presented in January a budget plan that reduced General Fund spending for the two-year budget from $6.3 billion in 2008-09 to $6.1 billion for 2010-11.

Budget background

See also: Maine state budget and finances

On or before September 1 of even-numbered years, the judicial branch, the legislative branch and each executive branch department or agency prepare a budget request for the next two fiscal years. Maine's Constitution guarantees that the state’s budget will be balanced in each fiscal year of the biennium, which results from its prohibition on deficit financing. There are two sections in the state constitution that address the issue. Article IX, Section 14 prohibits the state from incurring long-term debt of more than $2,000,000, except for certain specified emergencies, without a vote of the people. In addition, Article V, Part Third, Section 5 prohibits the use of proceeds from the sale of bonds for current expenditures.

The Consensus Economic Forecasting Commission (CEFC) was originally established by Executive Order on May 25, 1992, in order to provide the governor, the legislature, and the Revenue Forecasting Committee with analyses, findings, and recommendations for state economic assumptions to be used in developing state revenue forecasts. The creation of the commission was in response to a recommendation of the Special Commission on Government Restructuring in 1991 to establish an independent, consensus process for state economic and revenue forecasting. Public Law 1995, chapter 368 enacted in statute the Consensus Economic Forecasting Commission, maintaining both the structure and intent of the original Executive Order.

The CEFC is required to develop two-year and four-year economic forecasts for the state. In performing this duty, the commission is required by statute to meet twice each fiscal year. By no later than November 1 and February 1, the commission must annually develop its findings with regard to the economic assumptions or adjustments to the existing economic assumptions for the state. The commission submits its findings to the governor, the Legislative Council, the Revenue Forecasting Committee and the Joint Standing Committee of the legislature having jurisdiction over appropriations and financial affairs. The Revenue Forecasting Committee is required to use the economic assumptions and forecast of the commission in developing its four-year revenue projections.

See also

• Maine state budget and finances