State Budget 

As promised by Baldacci in his State of the State address, the supplemental budget package would not raise taxes or fees or touch rainy day reserves in the Budget Stablization Fund.

Officials said about $40 million dollars in savings to be applied against the revenue shortfall would come from cutbacks in human services, with a focus on reducing benefits to people whose incomes are too high to qualify for Medicaid.

In an interview with The Associated Press, Baldacci reiterated his State of the State assertion that his budget-balancing plan would not compromise the &quot:safety net&quot: that state government maintains for the needy.

Following up on Baldacci’s vow to pursue new government streamling steps, administration officials said an unspecified merger of natural resource agencies – looking to combine four existing departments into one or two – would be counted on to produce $250,000 in savings in the biennium.