AUGUSTA -- Gov. John Baldacci signed a $63 million order to cut state spending Friday to address continued revenue shortfalls that have resulted in a $93 million gap in the current budget year.

Most of the order cuts spending in the state's two largest budget accounts -- kindergarten-through-12th-grade education and the Department of Health and Human Services.

The order, which legislators could modify when they return to Augusta in January, cuts $38 million from subsidies given to local schools and $11 million from health and human services.

"We have not seen times like this in our lifetimes," Baldacci said during a State House news conference. "This is, for all intents and purposes, our Depression."

Despite that, Baldacci repeated his pledge not to raise taxes to cover the deficit.

The curtailment cuts everything from library books to funding for homeless shelters, and requires some state vehicles to be driven until they reach 125,000 miles.

Augusta schools Superintendent Cornelia Brown said she estimates the education cuts could mean $463,000 less in the current school year, although she had yet to see final numbers from the state.

"We closed a school last year," she said. "We are pretty frugal. We will have to have in-depth conversations about what to do and what will cause the least impact on students."

Baldacci put the education funding cuts in context by saying the state has increased funding for local schools by $526 million since he took office, even though there are 19,000 fewer students.

Voters in June 2004 approved a measure requiring the state to fund 55 percent of the cost of education, a percentage that has now dropped to about 49 percent, Baldacci said.

The cuts come as the state continues to deal with decreasing revenue.

The Revenue Forecasting Committee, which is made up of economists and state officials, considered on Friday a $383 million projected deficit for the two-year budget. A final report from that group is expected by Dec. 1.

Baldacci noted that the two-year $5.8 billion budget approved by the Legislature earlier this year is $500 million less than the one before it, which is the first time that has happened in at least 35 years.

"We have 1,000 fewer state employees, and we have made important structural changes to stretch dollars," he said. "Government is leaner, more efficient and more effective; but we have to do more."

Most of the health and human services money, $6.8 million, is covered by an increase in federal funds. Beyond that, Baldacci's curtailment cuts spending on programs that help the elderly, family planning, and room-and-board costs for those who are developmentally disabled.

Kate Brogan of the Family Planning Association of Maine said the approximately $90,000 cut to the association comes on top of a $300,000 reduction the state already had made.

In total, that's an 11.5 percent reduction in state funding this year, she said.

"This is going to be tough to take on top of that," she said. "We don't know what impact it's going to have on our system."

Brenda Harvey, commissioner of health and human services, said the state did not cut programs that draw down federal matching money and has followed federal guidelines for continuing "maintenance of effort."

She said service providers should be able to manage the reductions to programs over the next six months.

"We think agencies will be able to use those resources, perhaps a little less intensely, but to continue to serve people to some degree," she said.

The curtailment also cuts $6 million from the University of Maine System and $1.7 million from community colleges.

The university system anticipates reductions in instructional materials, laboratory equipment, library acquisitions and facility repairs, according to budget documents. It also may have to reduce security and student employment on some campuses.

The community college system does not anticipate the cuts affecting academics, the budget document states.

Legislators called the curtailment only a first step in what's likely to be a painful process of cutting the budget by at least $400 million between now and April.

Assistant Senate Minority Leader Jonathan Courtney, R-Springvale, said Democrats and Republicans will work together to address the budget crisis.

"I think everything is going to be on the board," he said. "It's tough times. We all understand that. That job is bigger than any one of us."

Rep. Emily Cain, D-Orono, House chairwoman of the Appropriations Committee, said there were no surprises in the curtailment, much of which will be rolled into a supplemental budget to be released next month.

"Someone is going to be upset about any proposal the governor puts forward," she said. "There's no fluff. We are talking about real programs, real people and real services."

Susan Cover -- 620-7015

scover@centralmaine.com