- Associated Press - Wednesday, March 19, 2014

AUGUSTA, Maine (AP) - Maine’s budget-writing committee agreed Wednesday to advance a plan to fix a multimillion dollar shortfall in the state budget as well as Gov. Paul LePage’s proposal to replenish the rainy day fund by $21 million.

The Appropriations Committee compromise unveiled around 3 a.m. cools a skirmish over the last several days between the Republican governor’s administration and Democrats, who initially attached to the governor’s proposal about $18 million in funding for programs such as Head Start. LePage’s administration accused Democrats of being “addicted to spending” and playing politics with the governor’s bill.

But Rep. Kathleen Chase, of Wells, the committee’s ranking House Republican, said Wednesday that Republican members convinced their Democratic colleagues of the importance of moving forward the governor’s proposal on its own so that bonds LePage is withholding can be released. The governor has refused to sign off on voter-approved bonds, saying he wants lawmakers to first approve his proposal to replenish the rainy day fund.

The initiatives that Democrats had originally attached to LePage’s bill will move forward in a separate measure that closes a $40 million budget gap and addresses an $18 million shortfall in the fiscal year that ends June 30, 2015. The bill appropriates $4.5 million in merit and longevity pay for Maine state employees and restores $500,000 for Head Start and $9.5 million for schools.

Democrats applauded the committee’s efforts in agreeing to move the proposals forward separately.

“We were very pleased that we were able to reach a unanimous bipartisan agreement that does protect so many of those things that are important to the people of Maine,” said Rep. Peggy Rotundo, a Democrat from Lewiston and co-chair of the committee.

Among other uses, the rainy day fund is tapped for revenue sharing money for cities and towns. LePage has insisted the reserve be replenished to bring its total to $60 million before he will release the bonds. The condition has drawn criticism from Democrats who say his refusal to sign off on the bonds is stalling job-creating projects and putting the state’s finances at risk.

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Follow Alanna Durkin on Twitter at https://www.twitter.com/aedurkin

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