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Budget proposal would put $3M in UMaine coffers

New projects close gap in state budget

Posted on March 18, 2010, at 3:34 a.m.

Roughly $3 million will be restored to the University of Maine’s coffers if the Legislature approves Gov. John Baldacci’s proposal to restore nearly $125 million to the state budget.

Because of new state revenue projections, additional money for Medicare prescription drug benefits and the extension of Medicaid funding from the federal stimulus bill, Maine is looking at a rosier budget for the next two years. As a result, Baldacci has proposed giving $6 million back to the University of Maine system as part of the unexpected revenue increase, roughly half of which will go to UMaine.

The approximate $3 million is only for the coming two years and won’t affect the current 2009-2010 UMaine budget, but it will have a “significant impact” on the fiscal 2011 budget, according to Janet Waldron, vice president of administration and finance at UMaine. What parts of the budget the funds restore will be up to President Robert Kennedy, who will likely decide within the next two weeks.

Despite the restored state appropriation money, UMaine isn’t completely in the clear for next year.

“We’re still $6.8 million below the appropriation level that the system had in fiscal year ’08,” Waldron said.

State Rep. Emily Cain, D-Orono, said the university shouldn’t back off from its money-saving plans because of the restored money, and UMaine isn’t likely to disagree — not with $5.9 million left to cut from the fiscal Year 2011 budget due to low enrollment and decreased gift revenue.

“We will still have to make significant budget reductions” to the FY11 budget, Waldron said.

The revenue increase will most likely be used for restoring parts of next year’s budget, but Kennedy may decide to use it to focus on increasing enrollment. That option would involve buying new databases and paying to put UMaine into more out-of-state college fairs to reach more students, Waldron said.

Additionally, the governor proposed a second restoration to state agencies March 11, which included $470,000 in debt services for UMaine to remove asbestos and mercury from UMaine facilities. This proposal is separate from the governor’s earlier restoration, according to state finance commissioner Ryan Low. The $470,000 will be distributed annually and amount to a total of $7 million over several years.

The Legislature still has to approve the governor’s proposal, and the Appropriations Committee will likely finalize the state budget sometime before Sunday, March 21.

“While it does abate some of the pain, it does not mean that the budget is going to be easy,” Cain said. “I’m happy to be able to provide some relief in 2011, but I don’t think anyone should think somehow things have gone back to pre-recession [levels].”

Waldron, along with Kennedy and Provost Susan Hunter, will hold public hearings March 30 and 31 to provide information and gather community input on the FY11. The first hearing will be held 1:30 – 3:30 p.m. and the second will be 10 a.m. – noon. Both will take place at the Wells Conference Center.

UMaine has faced repeated reductions in state appropriation during the past few years. UMaine cut $9.9 million from its current 2010 budget and lost another $5 million in private gift money.

“It was a strong case to make that even with tough times, higher education is exactly where we should be putting these resources,” Cain said.

This entry was posted on Thursday, March 18th, 2010, 3:34 am. You can follow any responses to this article through the RSS feed.