Maine Gov. Mills proposes $887M supplemental budget

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Democratic Gov. Janet Mills on Wednesday proposed nearly $900 million for a supplemental budget, with the additional spending intended to tackle urgent problems including affordable housing, shelter for homeless people and emergency medical services.

The total updated package envisions $432 million in new appropriations along with $455 million in transfers including $200 million to the Department of Transportation and $15 million to continue free community college tuition for in-state students.

The proposal contains no concessions to Republicans already angry over a procedural move used by Democrats, who control the Legislature, to adopt a two-year essential services budget over their objections. Democrats ended the legislative session after the vote, only to resume days later in special session.

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Mills proposes to use additional surplus money and increased revenue projections to add to the budget signed March 31, pushing it to $10.3 billion over two years.

"This proposal lives within our means, using revenues in a responsible way to address serious, pressing issues — like the housing crunch, homelessness, and food insecurity — while also making thoughtful, strategic investments that will strengthen our economy," the governor said in a statement.

The announcement adds to a previous supplemental budget bill and includes no tax cuts sought by Republicans.

Democratic Maine Gov. Janet Mills on Wednesday introduced a $887 million supplemental budget proposal addressing housing, homelessness, and healthcare. (AP Photo/Robert F. Bukaty)

"We don’t find the governor’s change package responsive to the times, or responsive to the needs of the Maine people," Republican lawmakers said in a statement.

The governor's updates include adding $50 million to a housing proposal, bringing the total to $80 million for affordable housing; $12 million in one-time funding for emergency housing for homeless people; and $31 million in one-time funding for grants to emergency medical services.

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Her proposal comes after a new projection of an additional $223 million available for the 2023 fiscal year, followed by a $71 million increase in the 2024 and 2025 fiscal years and flat revenues in the next two years.

The proposals build on the current services budget that maintains 55% of the cost of education and fully restored revenue sharing with municipalities, Mills said.

Previous budget surpluses allowed the governor to return $729 million to residents in the form of $850 inflation relief checks in 2022 and another $473 million this year through $450 heating assistance checks.

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Many Republicans called those one-time payments a gimmick and said permanent tax cuts would be a better option.