On March 10, the entire Legislature gathered together in the Augusta Civic Center for a legislative session. Though there were a lot of bills and some other legislative business for us to vote on while we were there, the main goal when we went in was to pass a supplemental budget. We didn’t complete our work until nearly 2 a.m. on Friday, but when we did we had passed a budget with the required 2/3 majority vote and sent it to Gov. Janet Mill’s desk for her signature. I’m extremely proud of many of the initiatives in the budget, and I wanted to share with everyone why it’s important and how it can help as we continue on the road to recovery.
First and foremost, we knew we had work to do to help Maine small businesses. It’s no secret these days that folks who own small businesses have borne the brunt of the pandemic and its economic consequences. As a small business owner myself, I know how hard it’s been, and I sympathize with folks who have struggled for nearly a year now. One way many businesses have gotten help during this time has been through the Paycheck Protection Program (PPP). The program provides forgivable loans to businesses, and for many, it has been the difference between staying open and keeping employees on or shutting down permanently. When the federal government designed the program, they exempted the funds from taxes. Since the Maine tax code doesn’t automatically conform to federal changes, we had to address this. Initially, Gov. Mills had floated the idea of taxing PPP funds at the state level. However, legislators heard from businesses all over the state that they couldn’t make that work. They needed the exemption. My colleagues and I in the Legislature got to work, and I’m pleased to say that the supplemental budget we passed exempts 100 percent of Maine business that received these loans.
While business owners have taken a major hit, so have Maine workers. When the pandemic began, thousands of Mainers were forced to leave their jobs and rely on unemployment benefits through no fault of their own. Since then, these benefits have been an absolutely critical lifeline for people across our state. They’ve allowed folks to feed their families, heat their homes through the winter and pay for other necessities. Typically, unemployment benefits are taxed as income in Maine. However, we wanted to provide additional relief to the men and women who have already sacrificed so much. In this new supplemental budget, we made a change to exempt the first $10,200 of benefits someone received from state taxes. I know this will make a real difference and directly help those who still need it most.
There are other provisions in this budget that I’m proud of, too. We funded a position with the Bureau of Veterans Services that will help homeless vets, appropriated funds to direct care workers and behavioral health professionals, and even added $8 million to the state’s Rainy Day Fund.
While finalizing this budget took a lot of negotiating and some compromises on both sides, I’m proud of the final product and that we were able to deliver significant relief to Mainers. We stuck to the essentials and the items that provide relief where it’s really needed. We didn’t add in tax breaks for overseas corporations or three-martini lunches just because that’s what was in the federal plan. We focused on what would help our state the most as we look to come out of this pandemic. Going forward, I plan to continue focusing on what is essential for folks right here in Maine.
If you have any questions, comments or concerns, don’t hesitate to reach out to me. You can send me an email at Stacy.Brenner@legislature.maine.gov or call my office at 287-1515.