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Appropriations committee reaches unanimous, bipartisan agreement on two-year budget

The new two-year state budget comes out to roughly $8.5 billion.

AUGUSTA, Maine — The new two-year state budget plan has won unanimous bipartisan approval in the Legislature’s Appropriations and Financial Affairs Committee.

On Wednesday, the budget will go to the full legislature for them to decide whether to give it final approval.

The new two-year state budget comes out to roughly $8.5 billion.

Some key components of the budget include pay raises for thousands of direct care workers and a significant boost in funding for nursing homes. There is also a special appropriation for dealing with PFAS chemical contamination, as well as added staff at the Department of Environmental Protection to address that issue.

Committee members had already approved an increase in school funding to have the state pay 55% of the cost of local schools. 

"To get to 55%, I think we had gotten to the low 50s, but that extra 3-4% may not sound like much but it represents significant dollars," President of the Maine Chamber of Commerce Dana Connors said.

The committee had also already approved an increase in state revenue sharing payments to towns and cities. If the budget passes, it would be 4.5% for this fiscal year and 5% for the following. 

Senator Cathy Breen, (D-Falmouth), Chair of the Legislature’s Appropriations and Financial Affairs Committee said, "Going back up to full revenue sharing, up to the full 5% is saying, 'Look, the state is going to do its share, we're going to do what we promised, and that should help all towns hold the line on property taxes.'"

Legislators on both sides of the aisle said the budget is the result of lengthy negotiations and compromises. The final product, they said, has something everyone can support. 

"It has a little bit, I think, for everybody," Senator Breen said. "Of course, everyone can find something in it that they don't love, but we hope that the unanimous committee support that we got to yesterday will send a signal to the legislature that there really is something for everybody in this budget."

House Republican Leader Kathleen Dillingham said, "I'm happy to see that Appropriations was able to come together to put out a product that received bipartisan support and addressed certainly some of our priorities."

"I will be supporting this and certainly encouraging my members to support it as well," Dillingham added.

The budget also includes hazard bonuses for working Mainers. $300 will be sent to most Mainers who worked through the pandemic and meet certain income requirements. Those checks are planned to be released in early December. 

"It's not a huge amount of money," Breen said, "but it's the Legislature's attempt to recognize the people who made a lot of sacrifices over the pandemic year."

The relief was a priority for Republicans in the committee.

"Keeping the budget under the 8.5 cap and getting out tax relief to people who worked through the pandemic was something that was important to all my members," Dillingham said.  

If the legislature approves the budget, it will take effect on July 1 and run through June 30, 2023.

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