Mills defends tax hikes; criticizes ‘red flag’ proposal

(The Center Square) — Maine Gov. Janet Mills defended her proposed budget cuts and criticized a proposed ‘red flag’ law referendum Tuesday night in her annual speech to state lawmakers.

Mills used her State of the State address to highlight some of her accomplishments over the past year and discuss key provisions of her budget, which includes a mix of spending cuts and tax hikes to help whittle down a projected $450 million revenue shortfall for the next fiscal year.

“I put forward a budget that does not rely entirely on revenue increases or cuts to programs,” the Democrat said in remarks. “Instead, it does both to bridge the gap and continue to invest in things we all support like education, revenue sharing, public safety, and higher education.”

Last week, Mills filed a two-year $11.6 billion budget, including cuts in some health care programs and a $1 tax increase on tobacco products. Other proposals include a new 5.5% tax on streaming services like Hulu and Netflix and an increase in the state’s cannabis excise tax from 10% to 14%.

“This is not reckless spending, as I have heard some say,” she said. “Rather, if we did not do these things, hospitals would incur more uncompensated care, property taxes would only go up, and tuition to higher eds would certainly rise.”

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Mills criticized a newly filed citizen’s initiative for a ‘red flag’ law in Maine asking voters to authorize families and law enforcement to ask a judge to temporarily restrict a person’s access to firearms. She said the state’s ‘yellow flag’ law is working and argued that the proposed ballot question would undermine changes that toughened the law.

“The law provides due process and it will survive legal scrutiny,” Millis said. “I also don’t believe a private citizen should have to navigate what can be a complex and confusing court procedure by themselves, especially in the middle of already difficult circumstances.”

The second-term governor — prohibited by term limits from seeking reelection next year — also struck a bipartisan tone in her speech, urging state lawmakers on both sides of the political aisle to come together to help craft a final spending plan.

“Whether you are a Democrat, a Republican, or an Independent — that’s how I hope you approach these conversations: in good faith, with good ideas, with civility, with an open mind to the views of others, and, ultimately, with the commitment and the courage to make hard choices,” she said.

But Republicans quickly poured cold water on Mill’s calls for partisanship, blasting her budget proposal as “reckless” and vowing to oppose any new taxes or increases in response to her speech.

“Let me be clear about one thing — this budget has zero Republican votes,” Senate Minority Leader Trey Steward said in televised remarks Tuesday night. “We know that Maine is already one of the highest taxed states in the country and Mainers are already struggling to get by. This budget throws gas on that fire.”

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