AUGUSTA, Maine — The Baldacci administration proposed restoring more than $60 million to public schools and to programs that serve the disabled and elderly Wednesday in the wake of slightly rosier economic projections and increased federal funding.

Gov. John Baldacci’s latest “change package” to the two-year budget would restore $78.7 million in cuts that had been proposed for state agencies and municipalities as part of efforts to close a $438 million revenue shortfall. That gap has since shrunk to roughly $360 million, according to state officials.

“Despite today’s good news, we know the economy remains fragile and our recovery is far from certain,” Baldacci said during a press conference.

Under the proposal, which must be vetted by state lawmakers, the administration would restore:

• $20 million in kindergarten through 12th-grade funding for public schools and $8 million for Maine’s public colleges and universities, including $6 million for the University of Maine System.

• $37 million to Department of Health and Human Services programs serving nursing homes, the disabled, home-bound individuals and the mentally ill.

• $6 million in revenue sharing for municipalities.

• $1.75 million to cover the state’s share of disaster assistance from severe flooding and ice events in 2007, 2008 and 2009.

Later Wednesday, in a presentation to the Appropriations and Financial Affairs Committee, Commissioner Brenda Harvey with DHHS said her agency took seriously concerns raised about cuts to services for the disabled, the mentally handicapped and children with special needs. Referring to the proposal, Harvey said the department in some instances was able to blunt — but not eliminate entirely — the cuts in reimbursement rates for service providers, hopefully allowing them to continue to serve more clients.

Harvey gave one example of additional money to support community-based and home-based care for autistic or mentally handicapped individuals now on a waiting list.

“These are 100 people who, without state support, are likely to end up on the streets or in a shelter or in some sort of crisis situation,” Harvey said.

The proposal would also soften the financial blow in fiscal year 2011 for kindergarten through 12th-grade schools bracing for a steep reduction in general purpose aid from the state. Under the latest proposal, schools can expect a $16 million drop in state subsidies in 2011, down from the original proposal of $36 million.

In some cases, money is being shifted to one area from another. That is the case with Dorothea Dix Psychiatric Center in Bangor, which will see its General Fund appropriation drop by more than $800,000 next fiscal year.

Those savings result from the elimination of 22 vacant positions at the facility, including three licensed practical nurses, eight mental health workers and a chaplain.

Linda Abernethy, acting superintendent at Dorothea Dix, stressed that the cuts will not affect care services provided by the facility, which has a staff of less than 250 people.

“Almost everything has been vacant for at least six months or longer,” Abernethy said. For instance, the psychiatric hospital has been trying to fill an occupational therapist position for three years now without success.

“We are able to function and provide the services that patients need,” she added.

Baldacci’s proposal also includes $2.6 million to pay the debt service on a $79 million bond package that the administration plans to roll out early next week. Without going into specifics, Finance Commissioner Ryan Lows said the administration wants to ask voters this June to approve a “job creation bond package” targeting largely transportation and infrastructure projects.

The Legislature’s Democratic leadership unveiled a proposed $99 million bond package Tuesday. But both proposals are likely to encounter opposition from Republican lawmakers.

Sen. Richard Rosen, a Bucksport Republican who serves on the Appropriations Committee, said Wednesday evening that he will have to be convinced that the state can afford to take on additional debt at this time. Three other bond proposals totaling nearly $69 million are already slated for the June ballot.

Rosen pointed out that the Legislature already has agreed on $150 million in bonds, spread over three elections. There weren’t supposed to be any more bond packages proposed this soon. The Appropriations Committee had also worked hard last year and earlier this year to lower the state’s bond debt service as part of an effort to fill a $30 million budget hole.

“I thought we had an understanding with the Democratic leadership, with the governor and with this committee about what we are going to borrow,” Rosen said.

Rosen said he was also disappointed that the administration did not choose to eliminate a $35 million “place holder” built into the current budget that anticipates passage of an additional federal stimulus bill.