AUGUSTA

Gov. Paul LePage’s administration on Friday
presented a proposed $6.3 billion budget that eliminates more than 200
state positions, seeks to share the state’s teacher retirement costs
with local school districts and makes changes in the state welfare
system to address an expected $40 million reduction in federal matching
funds.

While Republican LePage said his two-year budget takes steps toward
‘‘rightsizing state government’’ amid ‘‘challenging and difficult
times,’’ Democrats and teachers were quick to pounce on portions they
see as a tax shift from state to local taxpayers.

‘‘This budget is a giant shell game. It shifts the cost and the
burden to towns and local school districts, hurting middle class
homeowners,’’ said Lois Kilby-Chesley, teacher and president of the
Maine Education Association. She said the shift would be a result of
having school districts pay for teacher retirements among other
provisions.

LePage did not appear at the State House budget briefing, but
released a statement saying his spending plan ‘‘balances priorities for
the people of Maine by maintaining the crucial safety net for our most
vulnerable while holding the line on our already too high tax burden.’’
The budget, which covers the fiscal cycle starting July 1, now faces
legislative review in the months ahead.

It seeks to increase property tax breaks for older Mainers in two
programs, and temporarily suspend municipal revenue sharing. It also
proposes rollbacks in some social programs, such as discontinuing
state-funded cash assistance for legal non-citizens who are not entitled
to Social Security Income benefits. The budget seeks to maintain
funding for state colleges and universities, a provision that pleased
University of Maine System Chancellor James Page.

‘‘The appropriation levels recommended by Governor LePage, if
approved by the Legislature, position the University of Maine System to
again freeze tuition, this time for each of the two next academic
years,’’ Page said in a statement.

The budget, just a under $6.3 billion, is slightly larger than the
current budget, which now stands at $6.1 billion. Eighty percent of the
total is consumed by two departments — Education and Health and Human
Services — with Education accounting for 45 percent and Human Services
taking 35 percent. Of the 200 state positions targeted for elimination,
nearly 57 percent are in the Transportation Department.

During a briefing for legislative leaders and reporters, Finance
Commissioner Sawin Millett, who’s been in state government or close to
it for several decades, called the proposal ‘‘one of the more difficult
budgets I’ve dealt with.’’

‘‘The difference here today is we don’t have those low-hanging fruit
options. … We’re basically out of the easy-button options,’’ said the
commissioner, who faced a volley of questions from legislative leaders.
While the easy options are gone, administration officials also are faced
with diminishing federal stimulus money and increased use of human
services programs by people already enrolled in them.

Senate President Justin Alfond was focused on what he estimated would be a tax shift of about $400 million to local communities.

‘‘That is obviously a concern to all of us around the table because we
all come here representing our communities, and that’s a tremendous
amount of money to be taking from them in this budget,’’ the Portland
Democrat said.

Republican lawmakers acknowledged that the budget would force painful
choices, but it would protect the disabled and elderly and makes
investments to move the economy forward.

‘‘I appreciate that you are bringing forward a budget that does not
include a tax increase,’’ House GOP Leader Ken Fredette of Newport told
Millett.

Legislators’ immediate challenge will be revising the spending
outline for the fiscal year that will end June 30. The supplemental
budget accounts for nearly $90 million in extra obligations for
Medicaid, shrinking federal matches for social programs and revenue
estimates showing $35.5 million less than anticipated due to the
sluggish economy.