LePage signs $35.5M curtailment order

2:22 PM, Dec 27, 2012   |    comments
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AUGUSTA, Maine (AP) - Maine Gov. Paul LePage has signed an order cutting state spending by $35.5 million.

The curtailment order, signed Thursday, has been anticipated because of lower state revenues forecast in November. Finance Commissioner Sawin Millet planned to provide details later Thursday afternoon.

The reductions were necessary to ensure the state finishes the fiscal year with a balanced budget, as required by the Maine Constitution. The administration is also preparing a supplemental budget to close a projected shortfall in the two-year budget that ends June 30. That gap is caused by a projected $100 million shortfall in Health and Human Services.

Even after the cutbacks are made, serious fiscal challenges will confront the governor and Legislature as they put together a budget for the next two-year cycle in the months ahead.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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