| Maine's New Budget Is
Seen As A Breakthrough In School Administrative Restructiuring—
Investing in Education and
Innovation
Governor
John E. Baldacci signs Maine's budget
Ramona du Houx
"Today
marks a new day — a bright day for all of our futures. I am extremely proud of the
work that has been done to craft an exceptional state budget. We have made tough decisions
and set the priorities that will guide Maine for the next two years and beyond," said
Governor Baldacci. "We’ve come together — Democrats and Republicans —
and the result is something we should all be extremely proud of."
On June 7, 2007
Governor John E. Baldacci signed the state’s biennial budget which holds strongly to
the principles he outlined in his inaugural address.
On the day that
the governor submitted his budget to the Legislature in January, Speaker of the House Glen
Cummings took the unusual step of holding a press conference with leaders of both parties
to talk about their initial reactions.
"We have
said it all along that we do our best work when we work together," said Cummings.
"The governor made some bold policy statements this year and tying them to the budget
raised the level of debate in the state around those issues. It ensured that everyone
would come to the table to discuss how we could best use the budget as an agent for change
and to build a stronger foundation for our future."
Last year a
Brookings Institute Report stated that Maine had an unsustainable school administration
bureaucracy that needed to be cut and government programs that needed more efficiency and
streamlining. The report also said that investment in targeted business sectors, known as
"clusters," should be made. Innovation and education would be key for the future
of Maine in the global economy, and Maine needed to build upon those positive changes that
were taking place in these areas and start to implement change in other sectors. The
governor embraced the Brookings report, and his budget reflected some of its
recommendations.
"This
budget gets spending under control. We are reducing unnecessary administration in K-12
education and focusing our resources on the classroom where they belong, while providing
property tax relief," said Governor Baldacci. "We are streamlining state
government, especially in Human Services, and we’re investing in higher education and
innovation. We have improved the way the state does business while providing the tools to
grow our economy and add better paying jobs for our citizens."
"We have
answered the call for more efficient government, better access to quality education and
the improvement of Maine’s quality of life with this bill," said Senate
President Beth Edmonds. "There is great potential to keep moving along this path in
the future."
"The
people of Maine delivered a clear message to each of us: they told us to rein in state
spending — this budget does that by limiting state government growth," said
Senator Peggy Rotundo, Senate chair of appropriations. "They told us to make
government more efficient; this budget does that, with over $250 million in program cuts.
And they told us to protect the safety net for Maine’s most vulnerable citizens
— this budget does that."
The governor
recognized and thanked Senator Peggy Rotundo, Senate chair of appropriations, who worked
all hours of the day and night to finalize the budget
"This
budget makes structural reform in order to achieve a budget that will be
sustainable," said Rep. Jeremy Fischer the House chair of the Appropriations
Committee.
The budget was
enacted with a 112-29 vote in the House and a 28-7 vote in the Senate which exceeds the
two-thirds majority needed. The measure will take effect immediately.
"Last fall
we set out to construct a budget that would set Maine on a better course for the
future," said Becky Wyke, commissioner of the Department of Administrative and
Financial Services. "Our goal was to control spending so it didn’t grow faster
than Maine people’s incomes. Eighty percent of state spending is for education and
health. The budget streamlines administration in these areas, reducing costs and allowing
us to put our dollars where they are most needed, protecting our classrooms and our most
vulnerable citizens. The overwhelming bipartisan endorsement of these efforts is very
gratifying."
The largest
portion of the $6.3 billion budget is nearly $2 billion for state subsidy to local
schools. In 2004 the people of Maine mandated that state education spending be increased
to 55 percent.
"With this
budget, we have kept the promise to increase state aid to local education to 55
percent," said the governor. "This budget contains the first significant reform
in the administrative structure of K-12 education in more than 50 years. People realize
that we need change in order to have better opportunities. This is a firm fist step in
that direction."
"The
governor gave us a bold plan to remake school administration in Maine. It’s important
for people to realize that school administrative consolidation is extremely important for
the future of our children," said Rep. Emily Cain, a member of the Appropriations
Committee and leader of the education subcommittee. "Families want to know we are
providing the best quality education. By taking these steps that’s what we are
achieving. I’m proud of what we all have done. This is not the end — it’s
just the beginning."
The budget
would shrink the number of school districts in Maine from 290 to about 80, with projected
state savings of $36.5 million in the second year of the budget cycle, and ongoing savings
thereafter. New districts will be expected to have at least 2,500 students and no fewer
than 1,200 students. Location, school efficiency, and other mitigating circumstances will
be taken into account during the merging process.
School
districts are required to submit merger plans to the state education commissioner by
December 15th and then seek approval by local voters on January 15, 2008.
Jane Lincoln, the
governor’s Chief of Staff, Becky Wyke, Commissioner of the Department of
Administrative and Financial Services, Susan Gendron of Dept. of Education, Martha Freeman
Director of the State Planning Office, and Jim Rier of the Dept. of Education, all worked
for months to make this balanced budget happen
Approximately
$553 million is invested in higher education, in this budget. The increased funding will
go to the University of Maine System, community colleges and Maine Maritime Academy, aimed
at helping to hold tuition costs down and increase Mainers’ access to college
education.
"This
budget makes good on our commitment to bring education and opportunity within
everyone’s reach," said Speaker Cummings. "A person’s knowledge is the
single greatest asset they can have and their best hope for a bright future. This budget
will promote hope and opportunity for another generation of Maine people."
In many cases
Mainers come together to work out differences and find solutions, regardless of their
political affiliations. It is said that in Maine the people reflect who they elect.
Perhaps that’s why there was such bipartisan support for the budget.
"It's a
bipartisan budget, which I think has demanded the best from us all. We’re glad that
both sides of the aisle came together in good faith to set in place a budget that not only
will provide effective management of the state for the next two years, but also
establishes a new and sustainable path for the long term," said House Majority Leader
Hannah Pingree. "At the same time we protected health care for people who need it
most and boosted funding to higher education."
A major
provision of the final agreement was to preserve health insurance coverage for
Maine’s poorest residents and reduce cost shifts in the health-care system. The
budget also includes $1.2 billion for heath care for Maine’s poor families and the
elderly.
The state will
now pay doctors and nursing homes more to care for people in the Medicaid program, which
insures the poor and disabled. The budget will impose tighter controls on the use of
Medicaid services, capping Medicaid spending on services for childless adults, and
standardizing reimbursements for mental-health services.
Amongst other
measures the budget provides, the Department of Corrections will get an extra $7 million
to relieve a serious prison overcrowding problem. It also increases funding for the Maine
Economic Improvement Fund, and the Maine Technology Institute.
When the
governor’s proposed budget was announced back in January, Baldacci promised the
people of Maine that he would veto any budget that didn’t achieve property tax
relief.
"The plan
achieves substantial savings. That means Mainers will be seeing real property tax
relief," said Baldacci. "The budget invests in innovation, research and
development, and higher education. These investments are absolutely critical if Maine is
going to create sustainable, private sector jobs with good benefits and the highly skilled
workers to fill those jobs. With the $295 million bond investment package passed earlier
in the year, we are laying the foundation for a brighter, more prosperous future."
Commissioner Susan Gendron
of Dept. of Education is thanked by Governor Baldacci
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