AUGUSTA - Early this morning, the Legislature's Appropriations and Financial Affairs Committee approved a budget that makes transformational investments in child care, housing, emergency medical services and Paid Family and Medical Leave. The vote was 11-1.
The budget measure - LD 258, "An Act Making Unified Appropriations and Allocations from the General Fund and Other Funds for the Expenditures of State Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2023, June 30, 2024 and June 30, 2025" - represents Part II of the biennial budget and will next go before the full Legislature for a approval. The exact date will be announced by the Presiding Officers before the end of this week.
Chairs of the Legislature's Appropriations and Financial Affairs Committee released the following statements shortly after the vote:
Senator Peggy Rotundo, D-Lewiston:I'm pleased to report that we've reached agreement on a bipartisan budget that will improve the lives of Maine families, strengthen our communities and bolster our economy. This proposal makes key investments in child care, establishes paid family medical leave and creates a new dependent tax credit to help families afford to make ends meet, care for loved ones and fully participate in the workforce. These investments make clear what Maine values our people and families. At the same time, the budget enables the state to confront the housing and emergency medical services crises head-on. It supports initiatives to reduce homelessness and increase access to affordable housing, while also helping to ensure communities can access emergency services. I'm so grateful to my colleagues on the Appropriations and Financial Affairs Committee for their commitment to reaching a bipartisan agreement that reflects our shared priorities."
Representative Melanie Sachs, D-Freeport:"Maine people and communities are facing significant issues and this budget was carefully crafted to both respond to immediate needs and create lasting change - all while maintaining fiscal responsibility. Paid Family and Medical Leave will impact outcomes for Maine families for generations. Housing First has the ability to put an end to chronic homelessness. Stabilizing Emergency Medical Services means we've ensured that all communities have access to life-saving care. Property tax relief that will help older folks stay in their homes. Initiatives that we all can agree are essential to Maine's future."Our committee is proud of the work that we've accomplished, but more so on the impact this budget will have on Maine families, small businesses and communities. Ultimately, we were able to reach a bipartisan agreement and our investments now will result in long-term stability for Mainers health, housing and economic security."
HIGHLIGHTS OF THE BUDGETDoubles salary stipends for child care workers.
- The budget increases the salary stipends for all child care workers from $200 to $400. This will help qualified professionals afford to remain in the industry and help providers retain staff.
Boosts the child care affordability program.- The child care affordability program makes it easier for income-eligible working families to afford child care. The budget would increase eligibility for the program from 85 to 125 percent of the states median income. The change would take effect on Jan. 1, 2024.
Establishes the Housing First Program.- This program would facilitate services to residents of "housing first" properties, which are separately funded and developed to provide permanent housing to persons who have been chronically homeless. In addition, this provision would fund technical assistance for development of housing first properties, to be administered by MaineHousing.
Supports the creation of a Paid Family and Medical Leave Program.- The budget provides one-time start up funding to establish the states first paid family and medical leave program. Maine will be the 13th state to establish a program and benefits will be available as of May 1, 2026.
Invests in Emergency Medical Services.- The budget establishes a grant program to increase sustainability and resiliency of Maine-based emergency medical service entities. The program will shore up the most precarious areas at immediate risk of failing and leaving their communities without access to adequate emergency medical services.
Keeps promises to Maine State Retirees.- The budget dedicates $19.8 million for a one-time 3 percent cost-of-living adjustment (COLA) for retired State employees. The one-time adjustment would provide a maximum benefit of $726 and an average benefit of $527 to approximately 37,600 state sponsored plan retirees.
Provides income tax breaks for retired Maine residents.- The budget increases the annual income tax pension deduction to $30,000 to $35,000 for all retired Maine residents this tax year. The amount increases to equal the maximum social security benefit in the following years.
Establishes the Maine Dependent Tax Credit.- This new tax credit replaces the child care tax credit and provides a refundable dependent exemption credit of $300 beginning in Fiscal Year 2025. The credit amount is indexed to inflation.
A detailed outline of additional initiatives and appropriations is forthcoming.
Contact:
Christine Kirby (Rotundo) 294-2468Mary-Erin Casale (Sachs) 415-4965