AUGUSTA — Gov. John Baldacci signed an executive order Wednesday to cut spending by nearly $80 million to help close a shortfall in the $3 billion budget.
Of the $79.8 million, the deepest cuts are to the Department of Health and Human Services, which will lose $31 million, and to the Department of Education, which will lose $28 million.
"We're in a very difficult national recession," Baldacci said at a news conference at the State House. "All states are going through this. Maine is not immune."
Four workers at Health and Human Services will lose their jobs due to the cuts. Because the governor's powers are limited in a curtailment, he could eliminate only jobs that are directly affected by cuts to programs, said Ryan Low, commissioner of the state Department of Administrative and Financial Services.
Many state jobs will be left vacant to save money, Baldacci said.
DHHS Commissioner Brenda Harvey said $25 million of the $31 million in cuts to her department was not related to services or programs. The state did reduce funding for home-care services for the elderly, which will increase time on a waiting list for help, she said.
"We're not taking people off services," she said.
Betsy Sweet, a lobbyist who works on behalf of several social service agencies, praised the department for not cutting services.
"The department did a yeoman's job to mitigate the impact on individuals who need help in this terrible year," she said. "We somehow have to deal with the fact that people need services more when the economy is bad."
On the education side, Baldacci cut $27 million in aid to local schools and $1 million from other parts of the state Department of Education budget. He also cut more than $8 million from the University of Maine System and $3 million from the community college system.
In a statement, Sen. Elizabeth Mitchell, D-Vassalboro, the Democratic nominee for Senate president, said 41 states are facing budget shortfalls.
"As dire as the situation is in Maine, prior efforts to trim the state budget appear to have left state finances in a better position than they may otherwise be," Mitchell said. "Maine is not alone facing the effects of the Wall Street meltdown, but the work done last session has put us in a more competitive position."
Virtually all state agencies will see cuts as part of the curtailment. Baldacci said he tried to preserve "public health, safety and the economy."
Baldacci said the curtailment order, which does not require legislative approval, is the first in a three-step process the state will take to address falling revenue. Earlier this month, state revenue forecasters predicted a $100 million to $150 million revenue shortfall in the budget that covers state spending through June 30.
By immediately cutting spending by $80 million, Baldacci took the first step to close that gap. On Friday, forecasters are expected to refine the shortfall projection.
In mid-December, Baldacci will present lawmakers with a supplemental budget that will include the curtailment order and additional cuts necessary to close the gap. In January, he will present lawmakers with a new budget for the two-year cycle that starts July 1 that he says will include cuts as well.
Baldacci described a curtailment as "a blunt and limited tool" that does not allow him to cut budgets for the legislative or judicial branches of government. They will be notified later this week that they are to submit cuts for consideration in the supplemental budget, he said.
Rep. Hannah Pingree, D-North Haven, said legislators are prepared to trim their own budget.
"These are very tough times and the Legislature will be making sacrifices as well," Pingree said in a statement.
On the Republican side, Assistant Senate Minority Leader Jonathan Courtney, R-Springvale, said lawmakers from his party are prepared to deal with a difficult budget year.
"We're going to be open-minded to working in a bipartisan way to solve the problems of the day," he said.
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