Understanding the basics of the state budget
Understanding the basics of the state budget
By Rep. Kathy Chase
As the Legislature takes up Governor LePage’s $6.1 billion budget proposal, the State House has been packed by union members, teachers and other public sector employees concerned about changes to the pension system. Consequently, we are seeing more media attention than usual, and I’ve been asked by many constituents about the details of how the process works.
As a member of the budget-writing Committee on Appropriations and Financial Affairs, I will try to explain some of the basics.
The State of Maine budgets its finances on a two-year plan known as the biennial budget. It’s created by the governor, and for each of the two fiscal years it shows all proposed expenditures, interest, debt, redemption charges, capital expenditures and the estimated revenues to fund all of those expenditures and obligations.
Although it’s referred to as “the governor’s budget” and advances his program priorities and objectives, it’s submitted to the Legislature the same as any other bill. The governor cannot implement the budget by himself. It must navigate through the legislative committee process and then be passed by both the House and Senate – twice each – before it can be signed into law by the governor.
Despite all the hype, rhetoric, spin, outrage or delight you may currently read in the papers or see on the news about Governor LePage’s budget, rest assured that by the time it goes through the full process and eventually becomes law, it will be a different document.
Why is that? Because there are two mandates that neither the governor nor the Legislature can avoid. The budget must balance and the budget must pass.
The governor presents the initial balanced budget based on his chosen priorities. Any changes, even the smallest, alter the balance.
For the Legislature, the budget process begins in the Appropriations and Financial Affairs Committee. This 13-member panel is responsible for review of the budget through a series of public hearings, followed by committee workshops. All of the Legislature’s 15 policy committees appear before Appropriations with reports and concerns regarding their sections of the budget. Proposals for changes are negotiated, participation by legislators is encouraged and adjustments are made to keep the budget balanced.
This is an intense and lengthy process spanning more than six weeks. It’s the responsibility of the Appropriations Committee to deliver a fully vetted, reviewed and recreated budget. The committee itself votes on the final product and then passes the document to the full Legislature.
There are two ways the budget can pass. A so-called simple “majority budget” that occurs rarely, and the most common, a 2/3’s majority. Difficulties arise because all 186 legislators have their own ideas about what should or should not be in the budget and feelings can run hot.
Either way, it means that of the 186 legislators, at least 76 House members and 18 senators – plus the governor – must agree to pass the budget.
It is an incredible experience, and serving on the Appropriations Committee is a great honor for me and one of the best educations I have ever had.
State Rep. Kathy Chase (R-Wells), a third term legislator, serves on the Appropriations and Financial Affairs Committee
By Rep. Kathy Chase
As the Legislature takes up Governor LePage’s $6.1 billion budget proposal, the State House has been packed by union members, teachers and other public sector employees concerned about changes to the pension system. Consequently, we are seeing more media attention than usual, and I’ve been asked by many constituents about the details of how the process works.
As a member of the budget-writing Committee on Appropriations and Financial Affairs, I will try to explain some of the basics.
The State of Maine budgets its finances on a two-year plan known as the biennial budget. It’s created by the governor, and for each of the two fiscal years it shows all proposed expenditures, interest, debt, redemption charges, capital expenditures and the estimated revenues to fund all of those expenditures and obligations.
Although it’s referred to as “the governor’s budget” and advances his program priorities and objectives, it’s submitted to the Legislature the same as any other bill. The governor cannot implement the budget by himself. It must navigate through the legislative committee process and then be passed by both the House and Senate – twice each – before it can be signed into law by the governor.
Despite all the hype, rhetoric, spin, outrage or delight you may currently read in the papers or see on the news about Governor LePage’s budget, rest assured that by the time it goes through the full process and eventually becomes law, it will be a different document.
Why is that? Because there are two mandates that neither the governor nor the Legislature can avoid. The budget must balance and the budget must pass.
The governor presents the initial balanced budget based on his chosen priorities. Any changes, even the smallest, alter the balance.
For the Legislature, the budget process begins in the Appropriations and Financial Affairs Committee. This 13-member panel is responsible for review of the budget through a series of public hearings, followed by committee workshops. All of the Legislature’s 15 policy committees appear before Appropriations with reports and concerns regarding their sections of the budget. Proposals for changes are negotiated, participation by legislators is encouraged and adjustments are made to keep the budget balanced.
This is an intense and lengthy process spanning more than six weeks. It’s the responsibility of the Appropriations Committee to deliver a fully vetted, reviewed and recreated budget. The committee itself votes on the final product and then passes the document to the full Legislature.
There are two ways the budget can pass. A so-called simple “majority budget” that occurs rarely, and the most common, a 2/3’s majority. Difficulties arise because all 186 legislators have their own ideas about what should or should not be in the budget and feelings can run hot.
Either way, it means that of the 186 legislators, at least 76 House members and 18 senators – plus the governor – must agree to pass the budget.
It is an incredible experience, and serving on the Appropriations Committee is a great honor for me and one of the best educations I have ever had.
State Rep. Kathy Chase (R-Wells), a third term legislator, serves on the Appropriations and Financial Affairs Committee
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