Cuts to Maine social services fund worry lawmakers

Lawmakers expressed horror over proposed cuts in the state program that helps some of the most desperate Maine residents on Monday as they began reviewing potential social service cuts recommended by Gov. John Baldacci's administration.

The program is called general assistance and it serves as a last resort for the homeless, the hungry and "those out on the street," Sen. Joseph Brannigan said during a hearing before two committees assessing numerous cuts.

The cuts in Baldacci's supplemental two-year budget seek to address a $438 million gap between revenues and expenses.

Monday's hearing helped to set the tone for the new session, in which budget cuts are expected to dominate the agenda. While some advocacy groups have said a tax increase in needed to avoid further cuts in critical state services, Democratic Gov. John Baldacci has taken a firm stand against higher taxes and prospects for hikes are poor in an election year session.

The Department of Health and Human Services is among the hardest-hit, with proposed cutbacks in numerous programs such as state supplements to federal Supplemental Security Income, child welfare services and reimbursements for critical access hospitals, which are the first point of access for many of Maine's rural residents.

But cuts in general assistance generated the strongest reaction from committee members, who also were told that Portland and Bangor × cities that are magnets for people from outlying areas who seek jobs and social services × face most of the burden of cuts.

"When you put it together with school cuts and the revenue sharing cuts, and other responsibilities it's huge," said Brannigan, D-Portland, Senate chair of the Health and Human Services Committee, which reviewed cuts with the Appropriations Committee. Brannigan said that with all of the cuts, municipalities may be forced to raise local taxes.

Portland City Councilor John Anton said the proposed cuts would slash the state general assistance allocation in Maine's largest city by $1.3 million, a third of last year's $3.9 million figure. With the recession raging, Maine's largest city has seen demands on its general assistance program increase by 40 percent, he said. Nearly all of the funds go to food and shelter for recipients.

Those seeking help, he said, include people who have advance degrees, have skilled and professional work experience.

"Many of these first-time applicants own their own homes, have previously been employed and own their own homes, and are not struggling with securing basic necessities," Anton told the lawmakers.

Health and Human Services Commissioner Brenda Harvey told the committees that demands on her department have increased during the past several years while revenues have decreased. Funding has decreased since 2002 by $32 million to $756 million and the department has 300 fewer employees. Yet the caseload in MaineCare, Maine's Medicaid program, has increased by 120,000 in the last eight years.