Update: Mills Administration Spending Proposals Head to Legislature for Consideration

This section is contributed by our exclusive Advocacy Update sponsor Verrill and their lobbying and communications group, Maine Street Solutions. 

​The Mills Administration has released a series of spending proposals that will now head to the Legislature for consideration, amendment, and eventual passage. See below for details on the Administration’s proposals for a) spending federal relief dollars; b) a supplemental budget for the upcoming biennium; and c) a bond package.

Maine Jobs & Recovery Act
The Maine Jobs & Recovery Act is the Mills Administration’s proposal to invest more than $1 billion in discretionary Federal relief funds allocated to Maine under the American Rescue Plan Act. The plan draws heavily on recommendations from the Governor’s Economic Recovery Committee and the State’s 10-Year Economic Development Strategy.

The primary goals of the proposal are:

• Immediate economic recovery from the pandemic;
• Long-term economic growth for Maine; and
• Infrastructure revitalization.

Biennial Budget “Part Two”
Given the recent positive revenue forecast from the State’s Revenue Forecasting Committee, the Administration has proposed a supplemental budget for the upcoming two years (starting July 1, 2021) that builds upon the biennial budget passed by the Legislature in March.

The “part two” budget proposal includes:

• Meeting the State’s obligation to fund 55% of local K-12 education costs;
• Enhanced municipal revenue sharing;
• Investments in MaineCare for increased reimbursement rates, payments to providers, and more;
• Property tax relief through the Property Tax Fairness Credit;
• Enhanced State Earned Income Tax Credit (EITC), Child & Dependent Care Credit and employer-provided dependent care benefits;
• Infrastructure improvements;
• Funding for remediation of per- and polyfluoroalkyl substances (PFAS);
• and more.
  
  

Bond Package
The Mills Administration has also released its bond package for the year. While Governor Mills initially laid out an ambitious bonding agenda back in January, she scaled back her approach after passage of the Federal American Rescue Plan.

The Administration’s bond package now includes:

• $100 million to maintain and upgrade Maine’s transportation system through the Maine Department of Transportation
• $40 million for the Land for Maine’s Future program.

These three spending proposals will now head to the Legislature’s Appropriations and Financial Affairs Committee for review.

Read More About the Maine Jobs & Recovery Act