Gov. Mills signs $8.5B budget, which raises school funding

Fri, 07/02/2021 - 9:00am
    AUGUSTA — The Maine Legislature voted overwhelmingly in favor Wednesday of a budget that includes 55 percent state funding for education, a full restoration to revenue sharing by the end of the Fiscal Year 2023, and critical funding for senior living facilities and direct care workers.
    The vote was 123-23 in the House and 32-2 in the Maine Senate. 
    In a late Thursday afternoon ceremony, Governor Janet Mills signed the budget. 
    “This budget is an historic investment in the people of Maine, in our future, and in our economic recovery,” said Governor Janet Mills, in a news release. “The dawn of a new, brighter day is here. As we turn the corner on a deadly pandemic, the State of Maine – under my Administration and the bipartisan leadership of this Legislature – has finally delivered on its longstanding promises to the people of our great state. I am incredibly proud of this achievement, am optimistic about the good it will accomplish for Maine people, and am grateful to the Legislature who worked hard and in a bipartisan way to make today possible.”
    As an emergency legislation, the measure takes effect immediately.
    (Courtesy a news release from the Office of Senate President Troy Jackson)


    Restores revenue sharing: The budget makes good on the state’s commitment to our city, towns, and municipalities by fully investing in revenue sharing by the end of the biennium. This influx in funds to local municipalities will help stabilize property taxes by shifting the cost of essential services off of property taxpayers. The budget raises municipal revenue sharing from 3.75% to 4.5% in Fiscal Year 22 and 5 percent in Fiscal Year 23.

    Expands Property Tax Fairness Credit to 83,000 Mainers: The budget improved the Property Tax Fairness Credit, providing a one-time boost in the maximum benefit from $750 to $1,000 for income-eligible families, and $1,000 to $1,500 for seniors. The budget permanently changes eligibility for the program to provide property tax relief or rent relief to 83,000 Mainers.

    Bolsters the Homestead Exemption Program: In the biennial budget passed by the Legislature in March, lawmakers expanded the Homestead Property Tax Exemption, allowing Mainers to take $25,000 off the value of their home and only pay property taxes on the remaining amount through the Homestead Exemption Program. Under the current program, municipalities are only reimbursed by the state at 70 percent of the cost. This limits the programs’ impact on property tax relief. This budget increases the reimbursement by 3 percent each year until the state fully reimburses the municipalities to cover the full cost program. 



    Makes historic investments in public education: The budget fulfills the state’s commitment to Maine schools, municipalities and teachers by funding 55 percent of K-12 public education costs as outlined in statute. This marks the first time Maine has met the 55 percent threshold since  Maine voters passed a referendum in 2004 requiring the state to contribute 55 percent of funding for K-12 public schools. 

    Supports school capital improvement projects: The budget also adds $45M to the School Revolving Renovation Fund so schools can afford to make critical health, safety and capital upgrades. The COVID-19 pandemic has exposed areas that need repair in schools all across the state. These funds will support these repair projects and others need to protect the health and safety of Maine teachers, students and school support staff. 

    Supports higher education: The budget invests in the University of Maine System, Maine Community College System, and Maine Maritime Academy. It provides a 3 percent adjustment in funding each year to avoid tuition increases at each of the institutions, making it easier for Mainers to access workforce training and higher education.

    Addresses student hunger: The budget would make School Breakfast and National School Lunch programs available to all Maine students at no cost. Research has indicated that many families experiencing food insecurity do not qualify for school meals under the current eligibility guidelines. Given the projected increase in students likely to qualify for school meals in the wake of the pandemic, this will ensure that no student goes to school hungry.

    Invests in Maine’s workforce training through Career and Technical Education (CTE): Maine has not updated equipment and necessary capital improvements since 1997. The budget will support these improvements at CTE schools across Maine so students have access to the technology and tools they need to train for today's economy.



    Supports senior living facilities: The budget includes critical funding to maintain emergency rate increases that support nursing facilities and the hardworking professionals who care for the residents. Maine nursing homes and senior living facilities have been hit hard by the COVID-19 pandemic. These funds will help the facilities continue to operate and care for our loved ones.

    Supports all direct care workers: The budget raises MaineCare wage rates for direct care workers to 125 percent of minimum wage. Direct care workers provide quality, compassionate and personalized care to the residents in their care. Paying direct care workers a fair, living wage recognizes the importance of their work and will help attract and retain quality professionals to this vital field.

    Supports Mainers with intellectual disabilities: The budget funds a rate increase to ensure that Mainers with intellectual disabilities can access adequate services.

    Funds preventative dental care: This measure will expand access to preventative dental care to an estimated 217,000 Mainers while saving the state in costly emergency room visits, cutting healthcare costs statewide. 

    Invests in treating substance use disorder: The budget funds community treatment options and provides rate increases for recovery support services.


    Provides hazard bonuses for working Mainers: The budget provides a one-time $300 “hazard payment” to Mainers earning $75,000 or less as an individual; $150,000 or less for joint filers. This will support more than 500,000 Mainers who worked in unprecedented and hazardous circumstances during a one-in-a-lifetime pandemic.

    Preserves and protects Maine’s natural resources: The budget includes $40 million for the Land for Maine’s Future program to ramp up Maine’s land conservation efforts. In the wake of COVID-19, Maine’s conservation areas have experienced unprecedented foot traffic. These funds will play a vital role in supporting Maine’s outdoor recreation economy and Maine’s tourist economy. The budget also includes vital funds to clean up PFAS contamination.

    Grows the rainy day fund: The budget sets money aside for emergencies by adding a minimum of $60 million to the rainy day fund. This brings the total to $328.2 million — a historic high. For the past several years, lawmakers have made it a priority to responsibly set funds aside for emergency use should Maine experience an economic downturn. The budget continues this trend.

    Supports the work of the permanent commission: The budget provides critical funding for the Permanent Commission on the Status of Racial, Indigenous and Maine Tribal Populations to promote, implement and coordinate programs that create and improve opportunities and incorporate the goal of eliminating disparities for historically disadvantaged racial, indigenous and tribal populations in the State.

    Exempts the sale of menstrual products from sales tax: Maine will become the next state to abolish taxes on these sales to remove barriers to accessing necessary menstrual products.