Maine Democrats Pass $8.3 Billion Two-Year Budget
Democrats in the Maine Legislature used their majority status to pass an $8.3 billion two-year state budget Tuesday.
Democrats hold majorities in the House and Senate and used that electoral strength to pass what they called a bare-bones budget that they say funds current state programs and services for the two years beginning July 1. The budget was enacted in a 77-67 vote in the House and a 20-14 vote in the Senate, where two Democrats — Bill Diamond of Windham and Chloe Maxmin of Nobleboro — voted with the Republicans.
The budget increases K-12 education funding and money for a teacher retirement fund. The budget uses $60 million from the state’s liquor contract fund to help fill an expected $650 million shortfall expected through 2023, although that number may change as state forecasts do.
It also reclassifies some state employees and allows the Department of Health and Human Services to fast-track emergency rules without having to demonstrate the threat to public health or safety. It includes an increased homestead exemption.
The debate has centered mostly around process and not substance. The last budget passed by simple majority was by Democrats in 2005. Republicans including Waterford Rep. Sawin Millett, who serves as GOP lead on the Appropriations Committee, say process is a major issue.
After passage of the majority budget, lawmakers were polled and voted to call themselves back into session next month. They also passed an order carrying over all the unfinished business to that session. That allows public hearings and committee meetings to continue as scheduled.
The budget must be and was signed by Governor Mills by Thursday to go into effect by the beginning of the new fiscal year on July 1. Democrats had to technically adjourn the Legislature later Tuesday night to put the budget into effect by then. After passage of the majority budget, legislators were polled and voted to call themselves back into session next month. They also passed an order carrying over all the unfinished business to that session. That allows public hearings and committee meetings to continue as scheduled. Legislators will reconvene for a Special Session on April 28, 2021
MEMA
Bills of Interest
MEMA reviews and monitors each bill and flags the ones that impact our membership each week. Released as of the last Legislative Update are the following bills. Please be sure to reach out with feedback on any bills that catch your attention.
Upcoming Public Hearings and Work Sessions
Monday, April 5, 2021
Labor and Housing at 1 p.m. (Work Session)
LD 182, An Act To Expand the Definition of “Essential Worker” To Include Retail and Food Service Workers (Rep. Paulhus of Bath)
LD 648, An Act To Improve the Lives of Maine Workers by Supporting Apprenticeships That Lead to Good-paying Jobs (Sen. Rafferty of York)
Tuesday, April 6, 2021:
Appropriations and Financial Affairs at 1 p.m. (Work Session)
LD 221, An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2021, June 30, 2022, and June 30, 2023 (Rep. Pierce of Falmouth)
Wednesday, April 7, 2021
Environment and Natural Resources at 10 a.m. (Public Hearing)
LD 809, An Act To Prohibit the Purging of Volatile Organic Compound Gases from Oil Tankers in the Waters of Maine
Environment and Natural Resources at 11 a.m. (Work Session)
LD 226, An Act To Limit the Use of Hydrofluorocarbons To Fight Climate Change (Rep. Tucker of Brunswick)
LD 602, An Act To Prevent Pollution from Single-use Plastic Straws, Splash Sticks and Beverage Lid Plugs (Sen. Miramant of Knox)
LD 640, An Act To Ban Single-serving, Disposable Plastic Water Bottles (Rep. Gramlich of Old Orchard Beach)
Education at 1:00 p.m. (Public Hearing)
LD 313, An Act To Advance Career and Technical Education Opportunities in Maine (Sen. Woodsome of York)
Thursday, April 8, 2021
Appropriations and Financial Affairs at 2 p.m. (Work Session)
LD 221, An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2021, June 30, 2022, and June 30, 2023 (Rep. Pierce of Falmouth)
Friday, April 9, 2021
Education and Cultural Affairs at 10 a.m. (Work Session)
LD 313, An Act To Advance Career and Technical Education Opportunities in Maine (Sen. Woodsome of York)
Federal Update:
Biden Unveils $2 Trillion Infrastructure Plan
President Biden will officially reveal a $2 trillion infrastructure plan at a speech in Pittsburgh, Pennsylvania, at 4:20 pm EDT. Earlier this morning, the administration released a framework document that outlines the plan’s proposals (attached).
Very little in the “American Jobs Plan” is surprising. It establishes a long list of ambitious goals but leaves most of the details to Congress. As expected, it focuses on electrification, particularly of the transportation sector, and seeks to achieve 100 percent carbon-free electricity by 2035. It stops short of establishing a national clean electricity standard. Biofuels only get a passing mention as part of a $15 billion investment in climate-related demonstration projects and R&D.
The President is also promising to retrofit homes and commercial buildings through tax credits, formula funding, and grant programs. The plan includes a tax reform package that aims to pay for much of the bill within 15 years. This includes a proposed increase in the corporate tax rate from 21 to 28 percent. This has already drawn opposition from Republicans and some Democrats, including House Ways & Means Chair Richie Neal.
Congress is currently in recess until April 12. When lawmakers return, they will begin evaluating the President’s infrastructure plan. This is the first step in what will likely be a lengthy process before Democrats finalize a path forward and come to agreement on a final proposal.
NEFI is fully engaged in this process. We welcome your thoughts and input on this plan as we develop industry messaging and communicate with the administration and key members of Congress going forward.
