Public Hearing schedule and defining the challenge

This week the Appropriations committee met and caucused to produce an outline of how to address the various funding challenges confronting the Legislature in the face of the Governor’s continued unwillingness to produce a supplemental budget.

Next week the committee holds a series of public hearings on initiatives or potential funding sources under consideration for inclusion in a possible supplemental budget for FY2014.  A similar series of hearings will be held next week for FY2015.

The committee worked together in public to produce the lists you will find below.  The lists are neither comprehensive nor exclusive.  Items that do not appear on the lists may be part of the final product.  Items that are on the lists may not be part of the final product.  The list is a bipartisan effort to cast a wide net and hold a productive discussion.  It should also be noted that these lists are intended to be internal documents and as such may not contain the level of detail or context all may wish.  Please direct questions to my office or to members of the committee.  In the interest of providing you with as much timely information as possible, the lists appear in their current forms.

Expenditure Items for the FY 2014 General Fund Budget

All FY 2014 Items in the Spreadsheet prepared by the Office of Fiscal and Program Review are to be included in the FY 2014 Budget

Additional Expenditure  Items and Changes

Longevity Pay for state employees
Creation of a One-time Reserve Fund in the FY 2014 Cascade to cover disallowed Disproportionate Share Funding for Riverview Psychiatric Center

Funding Sources for the Legislature’s FY 2014 Supplemental Budget

Transfers from All other Special Revenue Funds to the General Fund
Transfer of unencumbered “Carried Forward” Balances in the General Fund to address the shortfall
Apply a 1% Across the Board Cut to “All Other” for all programs in the General Fund, except GPA, debt service, and Retirement
Additional revenue from applying the temporary increase from 5% to 5.5% in the Provider Tax to begin on June 1, 2014.
Increase the Cigarette Tax by $1.50
Equalization of the Tobacco Tax at the new rate of $1.50
Increase the Attrition rate from 6% to 10%.

Draft Proposal – Subject to Change

Draft Proposal –  Subject to Change

Expenditure Items for the FY 2015 General Fund Budget

All FY 2015 Items in the Spreadsheet prepared by the Office of Fiscal and Program Review are to be included in the FY 2015 Budget

Additional Expenditure  Items and Changes

Merit and longevity pay for state employees
Restoration of the Sales Tax Exemption for publications
Funding for Liquor Enforcement [Inadvertently omitted from the Biennial Budget]
The Rosen Report
Reclassifications of positions [Most are self-funded]
Funding for the Chairs of the Medical Malpractice Panel
Increase the Budget Stabilization Fund to $60 million
Restoration of the Income Tax relief Fund in the Cascade
Provide Gap Funding for Clean Water until proceeds from liquor bonds become available
Removal of the tax credit cap on Medical Deductions
Funding for the Criminal Justice Academy

Funding Sources for the Legislature’s Supplemental Budget for FY 2015

Additional Revenue from applying the temporary Increase in the Provider tax from 5% to 5.5%
3% Across the Board cut to “All Other” General Fund programs, except GPA, Debt Service, and Retirement.
Exclude retail personal property from BETR and BETE
Exclude Professional Services from BETR and BETE
Increase the Cigarette Tax by $1.50 [Effective June 1, 2014]
Equalization of the Tobacco Tax at the new rate of $1.50 [Effective June 1, 2014]
Repeal of the Super Research and Development Tax Credit
Increase the attrition rate from 6% to 10%

New/Additional Funding Sources

Increased Surveillance and Utilization Review of Medicaid programs to produce a total of 1% in savings.
Implementation of the Internet Sales Tax
Reduce the Historic Preservation Credit ap from $7.9 million to $5.9 million
Remove the sales tax exemption for purchases made by hospitals
Remove the Sales Tax exemption for purchases made by Private Colleges
Funds from the Fund for A Health Maine Tobacco Settlement [$1 million remains]
Reduce Maine Yankee Damage Award by 50 percent
Transfer the higher than expected Oxford-Hollywood slots revenues from the Maine Community College System to the General Fund Unappropriated Surplus
Transfer the higher than expected Oxford-Hollywood slots revenues from the University of Maine System to the General Fund Unappropriated Surplus
Transfer the higher than expected Oxford-Hollywood slots revenues from Maine Maritime Academy to the General Fund Unappropriated Surplus
Funds from Efficiency Maine Carbon Credits Fund
Funds from Dirigo Health Insurance Fund
Available funds from Debt Service
Funds from the Legislative Council
Tax Amnesty
Funds from improvements in the Records Check Process – Judicial Branch fee increase
Use of unspent funds in the Statewide Radio Network fund
Limit Suboxone and Methadone to 6 months.
Renegotiate Departmental Contracts
Additional Revenue generated by the Revenue Forecasting Committee
Rebasing of the hospital tax

Schedule

As noted above, AFA will hold a series of public hearings next week.  The full schedule is available here: http://www.maine.gov/legis/ofpr/appropriations_committee/schedule_agendas/index.htm

As always please join the committee in Room 228, listen online at: http://www.maine.gov/legis/ofpr/appropriations_committee/audio/index.htm or watch MPBN’s Capitol Connection broadcast either here: http://www.mpbn.net/News/MaineCapitolConnection.aspx, over the air or through your cable provider.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s