Mills Pitches $10.3B Budget Plan As Progressives Call For Strengthening Of Social Safety Net

By Evan Popp, Maine Beacon:

Gov. Janet Mills released a $10.3 billion budget proposal Wednesday, setting the stage for negotiations with the legislature over state spending for the 2024-2025 biennium and providing a glimpse into how Maine plans to address critical issues such as housing, social support services, health care and other important priorities.

The two year spending plan represents a $900 million, or 9.6%, increase in spending. That comes from bigger state revenues than initially expected — a pattern thus far during the Mills administration — and would not tap into Maine’s record-high rainy day fund of more than $900 million.

“From education at every level, to stable housing, to our health care system, to our transportation system, this budget proposal aims to strengthen what Maine people rely on every day to succeed — all while not raising taxes, living within our means, and protecting us against the possibility of a recession,” Mills said in a statement.

Under the plan, Mills, a Democrat, pitches $30 million to expand affordable rental housing options for workers and families, one of the most pressing issues the state faces. The proposal also contains a continuation of big ticket items from past budgets, including maintaining the state’s revenue sharing with municipalities at 5%.

Another policy in Mills’ plan is $101 million to maintain the state’s commitment to funding 55% of education costs, a voter-mandated obligation that Maine only met for the first time under Mills. In addition, the plan contains $58 million for continuing universal free meals in schools for kids, $10.5 million to expand pre-K, $7.8 million for salary supplements for child care workers, and $15 million to continue providing up to two years of free community college.

Between state and federal funds, the budget also provides $237 million for mental health and substance use disorder programs. Furthermore, there is $169 million for strengthening care for older Mainers, $84 million meant to fully clear a waitlist for home and community-based services for those with disabilities while improving other disability services, and $15 million to address Maine’s troubled child welfare system.

The measure also contains $17 million for the Maine Commission on Indigent Legal Services to help the state’s broken defense system for low-income people. However, that is far below the $62 million the commission has requested to address the issues with the existing program.

In addition, the budget allocates $3 million for helping Maine communities plan for climate change, $6 million for the state to find and deal with the impacts of per- and polyfluoroalkyl substances (PFAS), and $17 million for enhancing property tax relief.

“Governor Mills’ biennial budget proposal offers a thoughtful initial framework that supports working families and addresses some of our state’s most significant challenges,” House Majority Leader Mo Terry (D-Gorham) said in a statement, adding that she knows “House Democrats will be eager to consider more investments in areas like housing, the justice system and the overall health and wellbeing of our state.”

In her statement, House Assistant Majority Leader Kristen Cloutier (D-Lewiston) said the budget plan “responds to the needs of Maine families, from increasing funding for Pre-K and child care support to ensuring that more older Mainers will be able to age with dignity” and provides “a starting point for our conversations about how to move Maine forward over the next two years.”

Next steps

The budget will now be taken up by the Appropriations and Financial Affairs Committee, which is under new leadership this year, and will also be negotiated by members of legislative leadership, such as Senate President Troy Jackson (D-Aroostook) and Speaker of House Rachel Talbot Ross (D-Portland). The legislature will hold a series of public hearings on the measure, and advocates will attempt to shape the document and ensure their priorities are ultimately included.

One such advocacy group, the Maine Center for Economic Policy, released a statement Wednesday applauding Mills’ proposal but adding that lawmakers have the ability to shape the budget to be even better.

“While the proposed budget reflects the continuation of critical supports for Maine workers, families, and communities, there are many more choices lawmakers can make to create long term tools and opportunities for Maine people,” MECEP president and CEO Garrett Martin said.

The question of whether the budget will draw Republican support or will be a “majority budget” passed with only Democratic support will hang over future negotiations on the plan. Republican support is needed if lawmakers want to pass the budget with two-thirds of the legislature supporting the plan, which allows it to go into effect immediately. But Democrats could also choose to pass a majority budget — with the spending plan not going into effect until 90 days after its approval — which would allow progressive priorities that Republicans don’t support to remain in the measure.

Democrats went down that path in 2021, when they passed an initial budget plan without GOP support. And already this year, the party has clashed with Republicans over spending, with the Senate GOP initially blocking a $474 million heating and housing assistance plan put forward by Mills. That measure was ultimately passed and signed into law last week.

When finalized, this year’s spending plan will determine which priorities are ultimately approved this session. Some measures will be folded into the final version of the budget while other bills that have a fiscal impact could be approved using money set aside for the Appropriations Table, which is run by members of the Appropriations and Financial Affairs Committee. However, that money is limited, and every session some bills that pass the legislature ultimately die because they are left out of the budget and not funded using money from the Appropriations Table.

Bills this session that will require funding — through the budget or another mechanism — include the litany of housing-related measures that will likely be introduced. In addition, lawmakers will this session consider a bill to create a paid family and medical leave policy in Maine, with advocates standing ready to run a referendum campaign if that effort fails.

Progressive priorities

On Tuesday, before the governor’s proposal was announced, progressive legislators outlined some of the priorities they hope to see within the budget. For Rep. Amy Roeder (D-Bangor), addressing the state’s housing crisis — with prices skyrocketing and waitlists for vouchers growing — is essential.

“Housing is beyond the number one priority,” Roeder said, adding that she will only vote for a budget that has “the level of housing support that we’re asking for, that we’re begging for.”

Rep. Cheryl Golek (D-Harpswell) is also focused on housing.

“I hope that we continue to invest in affordable housing vouchers and work on long-term solutions for housing and homelessness,” she said. “I think that we have to continue to fully fund our social services.”

Rep. Ambureen Rana (D-Bangor) said she wants to see a budget that addresses the needs of the most vulnerable Mainers.

“My hope is that we are taking steps to take care of our people and make sure that folks have the ability to keep food in their fridge and roofs over their head and have their needs met, especially with recovering from the pandemic and the inflation that we’re dealing with,” she said. “So my hope is really just for supports for people to be able to not just survive but thrive.”

In addition, Rep. Rebecca Millett (D-Cape Elizabeth) named a number of budget priorities, such as investments in affordable housing, direct care workers, educator pay and school facilities, and renewable energy.

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