(The Center Square) – Maine’s supplemental budget has been signed into law.
The nearly $500 million fiscal pact, which pushed the state’s spending to almost $10.5 billion across the biennium budget passed and signed into law earlier this year, was inked by Democratic Gov. Janet Mills on Tuesday.
According to a release, the fiscal pact features investments in a paid family and medical leave program, updates the business incentive program, and invests in housing, childcare, healthcare, and education. The document is balanced, cuts taxes for Maine retirees, and maintains the Rainy Day fund.
“This historic budget delivers on my guiding belief that the way to build a stronger, more prosperous state is to invest in the infrastructure that Maine people need to succeed,” Mills said in a statement. “From establishing a paid family and medical leave program to strengthening education, housing, child care, our workforce, and delivering tax relief for seniors, this budget makes transformative investments in Maine people. And it does so while living within our means – this budget is balanced while our Rainy Day Fund remains at a record high.”
However, one public policy group took issue with the budget as it feels the state needs an opportunity to help residents.
“It grows spending to record levels and includes new tax increases, but offers no relief for the average working family,” Maine Policy Institute director of communications Jacob Posik said in a statement. “While state government enjoys record revenue and takes more from the people, hardworking families will continue to feel the pinch amid persistent inflation and economic uncertainty.
“It’s unconscionable that Maine is prepared to spend nearly $10.5 billion – in a state with just 1.3 million people – while offering no real tax relief to the third highest tax-burdened population in the country.”
According to a release, a paid family and medical leave program will use $25 million in one-time start-up funding, allowing more flexibility for businesses. The program will open on May 1, 2026, as Maine becomes the 13th state to establish such a program.
According to a release, the budget also features $70 million for constructing more affordable housing in the state and establishing the Housing First program, which will benefit those experiencing chronic homelessness. It will also utilize the Rural Affordable Rental Housing Program and the Low-Income Housing Tax Credit.
According to a release, emergency housing will see an influx of $12 million and will be used to extend housing support for shelters and families experiencing homelessness.
