30-06-2025
Gov. Mills signs budget addition into law
Maine House Speaker Ryan Fecteau, Senate President Mattie Daughtry and Gov. Janet Mills listen to the State of the Judiciary address on Feb. 25, 2025. (Photo by James Neuger/ Maine Morning Star)
Gov. Janet Mills signed into law on Monday the budget passed by the Democratic majority of the Maine Legislature last week.
After initial conflicting votes, both chambers Wednesday night approved a roughly $320 million budget addition to the $11.3 billion biennial budget passed in March.
'The budget bill enacted by the Legislature, like all lawmaking, is the product of various tradeoffs and compromises,' Mills said in a statement on Monday. 'Although I might not agree with every single provision, I appreciate the diligence and hard work of the Appropriations Committee to produce this bill, which makes important investments in Maine families, children, and seniors, our higher education institutions, housing, and more.'
With Mills' signature, the budget bill will take effect 90 days after the adjournment of the legislative session, a date that is not yet known as lawmakers are planning to return this week to finish work.
The budget the Legislature passed defied several of the proposals Mills put forth earlier this year, including rejecting the governor's proposed cuts to childcare programs and low-income food assistance, as well as proposed taxes on ambulances and pharmacies. The budget also effectively stops the state's free community college program for future graduating classes, against the governor's request to make it permanent.
However, the plan includes Mills' proposed tax additions on streaming services, cannabis, pensions and cigarettes — the latter at an even higher amount than the governor requested. Read about more of the details of the plan here.
Committee sets budget plan with party-line vote
'At a time when so much feels uncertain, this budget offers something solid: a commitment to the well-being of our communities and a hopeful vision for a stronger, more resilient Maine,' senate President Mattie Daughtry (D-Brunswick) said in a statement Wednesday night.
Her counterpart, Minority Leader Trey Stewart (R-Aroostook), offered a different perspective.
'We began the first regular session of the 132nd Legislature six months ago with news of a severe budget shortfall. It is truly concerning that legislative Democrats are continuing with this reckless path,' Stewart said in a statement Wednesday night. 'The Democrat majority has seized every opportunity to spend more at the expense of Maine's taxpayers. I have a very simple question for my Democrat counterparts: at what point will you wake up and realize enough is enough?'
While added appropriations total about $320 million, the bill has a lower fiscal note, $117 million, due to a range of cost cutting measures — taxes, some cuts, and transferring unexpected surpluses. The net cost is also lower than the roughly $127 million that remained after the initial budget passed in March, which had continued funding for state services at the same level while also providing one-time funding to fill the MaineCare deficit and other urgent needs.
The Democratic majority also pushed through that two-year budget plan in March without Republican support and formally adjourned in order to start the clock for those funds to become available in 90 days, which was Friday.
While the continued party-line divide in Augusta remains clear, the initial votes on the budget addition last week illuminated some divisions within the Democratic majority.
Six progressive Democrats in the House initially voted against the budget, arguing for their colleagues to reject regressive taxes, which have a greater impact on people with lower incomes, and instead push for a model that taxes the wealthy more — even if the governor, who has opposed any income-based tax reform, ultimately vetoes it. But five of the six representatives later backed the budget, allowing it to pass.
There is a bill currently in limbo that proposes such a change. Referred to as a 'millionaire's tax,' LD 1089 would place a tax surcharge of 2% on the portion of a resident's taxable income beyond $1 million for single filers to be used to fund public K-12 education. After both chambers rejected the bill in initial votes, the Senate reversed its stance last week, sending the measure back to the House to reconsider. It remains tabled.
There are several bills that similarly remain in a state of uncertainty between the chambers — including proposals for a comprehensive data privacy law — that lawmakers could consider when they return sometime this week to finish work.
About 300 bills that have passed both chambers are also in limbo on what's called the appropriations table. The appropriations committee, which manages this table, will ultimately decide which proposals to fund with any remaining unappropriated money.
Some of those proposals are bills to establish a task force to suggest reform to the real estate property tax, ensure the already required teaching of Wabanaki and African American studies are effectively taught in Maine schools, provide more funding for family planning services, fund proper disposal of syringe litter and expand testing for forever chemicals in private wells, among others.
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