Baldacci repeats pledge: No new taxes

Gov. John Baldacci repeated his pledge not to raise taxes at an afternoon press conference where he outlined what's in his supplemental budget. And, he said the pledge applies to the two-year budget that he'll release on Jan. 9. "We're not going to be able to raise taxes," he said. "People are fed up with taxes." Yet, at the same time, the governor and Legislature must approve a balanced budget. Unlike the federal government, the state can't rack up millions, billions or trillions in debt. For the new two-year budget, there a projected gap of $838 million that will have to be closed. The supplemental budget he released Tuesday afternoon seeks to address a $140 million revenue shortfall in the current budget year. While Republicans say they are still weighing some of the merits of Baldacci's supplemental budget -- they are questioning proposed changes in reimbursement rates for doctors and hospitals -- they are pleased the governor is not turning to taxes to fill the budget hole. Senate Minority Leader Kevin Raye, R-Perry, and House Minority Leader Josh Tardy, R-Newport, put out this joint statement: "We agree with the Governor's refusal to include tax or fee increases in the Supplement Budget and are pleased that he has ruled out tax increases for the biennial budget. A time of economic crisis is exactly the worst time to raise taxes. The people of Maine spoke loud and clear on Question 1 # the people's veto of the ill-conceived tax on health care claims and beverages. Republicans in the Legislature stand with the people of Maine, and agree with the Governor's assertion that Mainers are 'fed up' with tax increases."