AUGUSTA — Democratic Gov. Janet Mills signed a curtailment order Thursday to address a projected revenue shortfall caused by the pandemic.
The governor said the order curtails the general fund by $221 million and the highway fund by $23 million but avoids deep program cuts and layoffs of state workers. She also said this measure leaves the state’s $259 million rainy day fund alone.
Mills said Congress and President Donald Trump must act immediately to provide additional aid to state and local governments
In July, the Revenue Forecasting Committee projected a $528 million revenue shortfall in the general fund for the two-year budget ending June 30, 2021.
The curtailment order replaces $97 million in state spending with one-time federal relief and adopts about $125 million in savings and efficiencies across departments.
The latter includes savings from higher Medicaid reimbursement rates included in the CARES Act.