Info from House Speaker Hannah Pingree on the Governor’s Budgetary Curtailment and What It Means…..
In addition to the Governor’s decision this week to curtail spending, Maine’s Revenue Forecasting Committee recently met. It appears they will lower the revenue forecast for the FY 2010 -FY 2011 biennium by $383 million. The Governor is expected to present a supplemental budget in mid-December that will address that shortfall.
Unfortunately, this is not the first curtailment order the Governor has issued in the last year, but for many, the process is new. The use of his legal authority, through the issuance of an Executive Order, to curtail allotments allows the Governor to act without legislative approval to reduce spending in a manner that does not require changes in law. This authority is meant to only be used in extraordinary times.
The governor curtails without legislative approval and these were decisions of the executive branch. The Legislature will be reviewing his curtailment decisions and cuts as part of the supplemental budget that they will receive in mid-December. Public Hearings will be held in early January. But with today’s more bad news on revenues, the Legislature’s task of balancing the budget will not be easy.
Below you will also find background information on curtailments. As more information becomes available, I will pass it on to you.
Basics of Curtailments
Today the Governor reported to the Presiding Officers that he will issue an Executive Order curtailing allotments for the first year of the biennium. The amount of funding available to programs and agencies will be reduced between now and the end of this fiscal year, June 30, 2010.
Maine is required to have a balanced budget, with expenditures not to exceed anticipated revenues.
When the Commissioner of Administrative and Financial Services determines that anticipated revenues will not be sufficient to meet the expenditures authorized by the Legislature, the Governor has the statutory authority to curtail allotments so that government “expenditures will not exceed anticipated income and other available funds.”
All curtailments must be done equitably, and “must insofar as practicable, be made consistent with the intent of the Legislature in authorizing these expenditures.”
“Equitable” does not mean “equal” and the Governor has discretion with regard to the percentages of curtailments he imposes on various agencies and programs.
The Governor is prohibited from eliminating an allotment through curtailment; this includes the elimination of a position.
Curtailment is a temporary budgetary device, and the curtailments may be changed or made permanent by the Legislature.
The Governor may not curtail allotments for debt service on bonds issued by the state.
