Naturally, when I returned to the State House after six years away, I encountered many changes — a new governor, many new faces in the Legislature, and a vastly different political and economic landscape than in 2016.
While circumstances change, there are some things that will always stay the same. For instance, as the current and a former Senate Chair of the Appropriations and Financial Affairs Committee, I know that crafting a biennial budget that represents the values and priorities of the people of Maine has always required more listening than talking and showing respect for views that you don’t necessarily agree with.
This year has been no different. While the committee’s work can be very difficult and involve many late nights and early mornings, the current biennial budget was well worth it. The budget invests in Maine people, attempting to make life easier for families that are struggling, while also increasing the money left in the pockets of those who pay taxes.
In March, the Legislature passed the “Part I” budget, which funded only the items that the Legislature was obligated to fund, including continuing to fund the state share of education funding at 55%; maintaining current levels of all of Maine’s property tax relief programs, including the property tax exemption for veterans; and continuing the increased reimbursement rates and cost of living adjustments for our MaineCare providers and much more.
The Part II budget contains new initiatives to address some critical needs. Chief among these needs is affordable housing. Maine cannot grow unless people can afford to live and work here. The budget includes $70 million to subsidize the construction of affordable units. It also funds emergency housing initiatives to address homelessness, including student homelessness, a very troubling problem.
While it is impossible to mention every item in the budget that I am proud of, I would like to stress that the Legislature has funded the Paid Family Medical Leave program to allow people to take time off from work for emergencies without fear of losing their jobs and expanded the Child Care Affordability Program, making it easier for income-eligible working families to afford child care.
Additionally, we provided tax relief by replacing the Property Tax Stabilization Program with an expansion of the Property Tax Fairness Credit and Property Tax Deferral Program and by boosting the Dependent Tax Credit by making it refundable and tying it to inflation. We decoupled from the federal government’s coming changes to the standard deduction, saving Mainers $300 million in taxes per year starting in the biennium after this one.
In addition to increasing the income tax pension benefit, we helped many older Mainers by providing a one time 3% COLA to retired state employees as well as providing significant funding for veterans’ homes and other nursing facilities. We removed the asset test for the Medicare Savings Program, which will provide an additional 19,000 older Mainers with more affordable health care, and appropriated $31 million for Emergency Medical Services to ensure everyone living in the state has access to high-quality emergency medical services.
We addressed food insecurity by funding for Meals on Wheels and the Supplemental Nutrition Assistance Program and tried to address the stubborn problem of opioid addiction by funding treatment centers and sober living houses.
We put money into PFAS remediation and drinking water and wastewater systems; boosted workforce development by funding the Dirigo business tax credit program; and helped our students get ahead by funding additional years of free community college. Along the way, Democrats and Republicans worked together to find consistent funding for the chronically-underfunded Highway Fund, to ensure the safety of our roads and bridges. These items only scratch the surface.
This budget reflects the good faith negotiations and willingness to compromise among Democratic and Republican Appropriations Committee members. Other things may change, but working hard, keeping your word and listening to others must never go out of style in Augusta.
Peggy Rotundo currently represents Lewiston in the Maine State Senate and serves as the Senate chair of the Appropriations and Financial Affairs Committee.
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