“Today, I am here to say to Maine people: help is on the way. You are our greatest asset – and this budget delivers for you.”
One day after successful the overwhelming assist of the Legislature, Governor Janet Mills signed the supplemental finances into legislation immediately.
The finances delivers $850 direct reduction funds to Maine individuals to assist with the excessive prices of inflation– one of many strongest reduction proposals within the nation. It offers tax reduction to working Maine households and two years of free neighborhood school to pandemic-impacted college students, amongst different necessary initiatives.
In complete, the finances give again is anticipated to ship $1,700 in reduction to the typical Maine family.
“We have shown once again that through hard work, Democrats, Republicans, and Independents can come together to do what is right for Maine people — and that we can do so without the rancor or bitter partisanship that has divided Augusta in the past,” mentioned Governor Mills. “We may not be able to control inflation or global markets, but we can make sure that Maine people have what they need to grapple with these rising costs – and that is what we are doing. Today, I am here to say to Maine people: help is on the way. You are our greatest asset – and this budget delivers for you.”
With Governor Mills’ signature, the emergency laws takes impact instantly. At the route of the Governor, the Department of Administrative and Financial Services (DAFS) will challenge the funds as rapidly as attainable to an estimated 858,000 Maine individuals – with a goal date of June 1, 2022 to start supply. The funds will likely be delivered by way of mail, which is essentially the most dependable technique of distribution, to make sure that the cash is delivered with out important error.
“Thanks to the partnership between this Administration and the Legislature, we have once again achieved a budget that balances Maine’s spending as required by law while also delivering much-needed relief to Maine people in a way that protects both our citizens and the State’s fiscal stability against future economic downturns,” mentioned Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services. “We will begin the work immediately of getting $850 checks into the mailbox of every Maine adult who qualifies, and, as always, will continue to carefully monitor the Maine economy, the wellbeing of Maine people, and Maine’s fiscal health, investing in long-term solutions while maintaining the State’s solid financial position.”
Highlights of the supplemental finances embrace:
- Inflation Relief: Gives again greater than half of the State’s surplus – $729.3 million – within the type of one-time $850 checks on to an estimated 858,000 Maine individuals. Delivering reduction on this means offers Maine individuals with the liberty to determine for themselves how greatest to make use of the cash, whether or not or not it’s for groceries, fuel, heating gas, electrical energy, or different bills. Recipients should file a Maine particular person revenue tax return as a full-time resident by October 31, 2022 and never be claimed as a depending on one other’s tax return. Eligible Maine individuals should have a Federal adjusted gross revenue (FAGI) of lower than: $100,000 if submitting single or if married and submitting individually; $150,000 if submitting as head of family; or $200,000 for {couples} submitting collectively.
- Tax Break for Maine Retirees: Exempts further Maine retirement pension from revenue tax, bettering the deductions for residents from $10,000 to $25,000 in tax 12 months 2022, to $30,000 in tax 12 months 2023 and to $35,000 in tax years 2024 and past. This will present $36.8 million in revenue tax reduction for Maine retirees in 2022, with a median tax reduce of $560 in simply the primary 12 months. Retirement pension revenue from any supply will likely be tax exempt in Maine as much as $35,0000 per particular person by tax 12 months 2025, offering an annual common tax reduce of roughly $795. Military pensions and annual social safety revenue stay absolutely exempt in Maine.
- More Property Tax Relief: Provides $7 million in ongoing General Fund {dollars} to make sure secure housing by growing the utmost advantage of Maine’s Property Tax Fairness Credit. An estimated 100,000 low- and middle-income property homeowners and renters who pay greater than 4 p.c of their family budgets on property taxes or lease will likely be eligible for a refundable tax credit score valued at as much as $1,000 annually, with an much more beneficiant $1,500 in most reduction prolonged to seniors.
- Increased Tax Relief for Low- and Middle-Income Working Maine Families: Provides $27.6 million in ongoing General Fund {dollars} so households can afford requirements and struggle poverty by growing the worth of Maine’s Earned Income Tax Credit (EITC), which offers a refundable tax credit score to working Maine individuals and households. This enhance is estimated to assist 100,000 Maine individuals, primarily working households with incomes of lower than $57,414, by growing the utmost profit by a median of $400 per household, bringing the whole EITC profit per household to a median of $764 per 12 months.
- Two Years of Free Community College: Dedicates $20 million in one-time General Fund {dollars} to supply as much as two years of free neighborhood school for all college students from the highschool graduating courses of 2020, 2021, 2022 and 2023 who enroll in a Maine neighborhood school full-time.
- Overhauls Student Loan Debt Repayment Program: Provides an annual $2,500 or as much as $25,000 lifetime refundable tax credit score profit for scholar mortgage debt reduction. The supplemental overhauls the Education Opportunity Tax Credit and transforms it into a strong, nation-leading instrument to retire scholar debt for graduates and assist employers to attract individuals from all walks of life to work and reside within the State of Maine.
- Prevents Tuition Hikes Across University of Maine System: Provides practically $8 million in one-time General Fund {dollars} to assist the University of Maine System maintain tuition flat for in-state college students and offers ongoing funds for the System to put money into updating and renovating its campus buildings.
- Increases Pay for Child Care Workers and Early Childhood Educators: Provides greater than $12 million in ongoing General Fund {dollars} to extend pay for baby care staff and early childhood educators to strengthen our baby care system throughout Maine, in line with the objectives of laws sponsored by House Speaker Ryan Fecteau, and along with the numerous investments the Maine Jobs & Recovery Plan makes in increasing baby care and Pre-Ok schooling.
- Fully Funds Free School Meals: Provides practically $27 million in ongoing General Fund {dollars}, to be mixed with the $10 million beforehand put aside by the Governor and Legislature, to completely fund common free meals in public faculties, in line with an initiative spearheaded by Senate President Troy Jackson.
- Expand Children’s Health Insurance: Provides $3.2 million in General Fund {dollars}, which is able to leverage greater than $9 million in Federal funding, to increase the Children’s Health Insurance Program, in any other case generally known as CHIP, to supply complete protection to a further 40,000 Maine youngsters.
- Increases MaineCare Rates: Provides $30 million in ongoing assist from the General Fund to completely implement up to date charges for direct assist employee wages, add and speed up new cost-of-living changes for charges, and lift charges to be adequate to pay direct assist professionals at 125 p.c of minimal wage. This is along with the greater than $500 million funding already being made via the at the moment enacted biennial finances for MaineCare and supplier funds.
- Supports Maine Hospitals and Nursing Homes: Sends $25 million in one-time funding to Maine hospitals, together with $6.8 million from the General Fund, in addition to $25 million in one-time funding to long-term care amenities, together with $7.5 million from the General Fund, to assist these Maine well being care organizations take care of one-time pandemic associated prices.
- Tackles PFAS: Dedicates an preliminary $60 million in one-time General Fund {dollars} to capitalize a Trust Fund to Address PFAS Contamination, in line with the intent of LD 2013 and with the objective of securing further Federal and different sources of funding within the long-term, in addition to roughly $9.3 million for PFAS mitigation and associated efforts in Maine throughout 2022 and 2023, together with for in-state lab capability, wildlife testing, and extra farmers help.
The finances additionally maintains the Budget Stabilization Fund, in any other case generally known as the Rainy Day Fund, at $493 million, the very best it’s ever been. Under Governor Mills, Maine’s Budget Stabilization Fund has greater than doubled.
Read an entire one-pager on the supplemental finances (PDF).
The supplemental finances is balanced and takes a cautious, fiscally accountable strategy, dedicating greater than 75 p.c of the excess to one-time initiatives slightly than ongoing spending after the nonpartisan Revenue Forecasting Committee famous that the long-term income projections are “volatile and susceptible to significant downside risk” within the years to come back.
It constrains web appropriations to only $172 million of the $1.2 billion surplus, dedicating greater than 75 p.c of the excess to one-time initiatives and financial savings as a hedge in opposition to financial uncertainty, slightly than ongoing spending. The proposal leads to a $8.67 billion General Fund finances. The at the moment enacted General Fund finances is $8.5 billion.
It builds off a earlier finances measure – additionally handed practically unanimously by the Legislature – that achieves 55 p.c of the price of schooling, absolutely restores income sharing with municipalities, replenishes the Land for Maine’s Future Program, and offers a complete of $371 million in reduction to Maine individuals and enterprise, together with $285 Disaster Relief Payments to greater than half one million Maine individuals.
It additionally enhances the Governor’s Maine Jobs & Recovery Plan, her Administration’s plan to make use of American Rescue Plan Act funding to enhance the lives of Maine individuals and households, assist companies, create good-paying jobs, and construct an economic system poised for future prosperity.