Democrats presented their plan to get rid of $250 million in borrowing in the state budget Tuesday, making good on a promise to cut about $120 million in expenses and raise the rest through a $1-a-pack hike in the cigarette tax.

Their proposal delayed a cut in the Business Equipment Tax Reimbursement (BETR) program for one year, by instead raising more in income tax from multi-state corporations. In the second year of the budget, BETR – which reimburses businesses for the personal property taxes they pay – would be cut by 10 percent.

The budget was approved, along partisan lines, by the Appropriations Committee on late Tuesday afternoon. Republicans presented their own plan, which included no tax hikes.

It was an amicable process compared to the night before when negotiations between Democrats and Republicans fell apart and committee co-chairmen, Rep. Joe Brannigan, D-Portland, abruptly ended the meeting. On Tuesday, Brannigan apologized for “my lack of decorum.”

The committee had begun negotiating in earnest last week when they released a long list of possible cuts to all departments in state government to make up a $250 million gap in the budget, once filled with borrowing.

Faced with a possible people’s veto referendum – being pushed by Republicans – Gov. John Baldacci announced late last month he was backing away from floating revenue bonds to fill a $250 million hole in the budget and wanted alternatives.

Democratic leadership predicted that hole would be filled with $125 million in cuts and $125 million in new revenue – a goal they essentially met on Tuesday. The full Legislature will now consider the revised budget later this week.

Republicans said they wanted more in cuts and no tax increases. They targeted Medicaid programs that have been expanded to include more parents with Medicaid-eligible children and more childless adults, and eliminated Dirigo funding to help pay for that expansion. Cuts there would produce savings of more than $52 million. They also suggested eliminating the governor’s Office of Health Policy and Finance, which spearheaded the Dirigo Health initiative. They also asked for $11 million in salary savings by eliminating some state positions and a 5 percent decrease in the “all other” accounts in every state department for $13 million.

The Democratic cuts voted in by the majority on the committee include:

• $10.4 million in behavioral health services out of the DHHS budget.

• a 10 percent reduction in the Business Equipment Tax Reimbursement program, in fiscal year 2007 for $7 million.

• $5 million in debt service on school reconstruction projects by delaying six projects for a year.

• $5.9 million in the school renovation account, representing costs recovered after projects were completed.

• $5.5 million from the reimbursement to municipalities for the tree growth tax break program.

• $5 million in revenue sharing for cities and towns.

• $5 million from the Fund for Healthy Maine, funded by the tobacco company settlement.

• $6 million in ferry expenses by paying for ferry services out of the Highway Fund.

• $4.8 million in municipal efficiency funds used to encourage regionalization.

• eliminating the foster care clothing allowance for $1.2 million.

• $2 million in the “all other” account in the University of Maine System.

• $1.5 million from the Medicaid program for adults without children at 100 percent of poverty.

• $2.2 million from the Dirigo Health fund.

• $2 million in yet to be determined “administrative efficiencies” including a review of all state contracts for outside services.

Virtually all departments took some hits that helped bring the total to $120 million.