Every year, Maine’s lawmakers are faced with tough spending decisions and limited resources at their disposal. Unlike the federal government, Maine is constitutionally required to have a balanced budget every year. Because of our current public health crisis, revenue projections are down dramatically, making these decisions all the more difficult. I’ve read social media posts and spoken to friends and family about the status of Maine’s budget. My colleagues and I who are on the Appropriations and Financial Affairs Committee have safely met over the past few months to review Maine’s finances and to help maintain our financial footing. While none of us anticipated our current economic downturn, the Legislature passed a supplemental budget earlier this year that put even more money in the state’s “Rainy Day” fund. Thanks to responsible, bipartisan decision making, Maine is in a good place to weather the storm.
Before the pandemic, the Legislature increased Maine’s Rainy Day fund to $258 million, a historic high. The Appropriations Committee worked to ensure that there was extra money in Maine’s General Fund at the end of last session, with more than $100 million to fill in any gaps caused by the COVID-19 pandemic. Our budget also has $29 million set aside for MaineCare, knowing more people would need health care coverage. If this were normal times, Maine’s fiscal status would be in tip-top shape, but as it stands, we are as well prepared as we could be because of lawmakers’ commitment to balancing the budget and saving money before the pandemic.
As of right now, revenue projections for the 2021 fiscal year estimate a decrease of less than one percent. Managing our state’s budget is no easy task, and my colleagues and I took it very seriously and bolstered our safety net for Maine’s future. Because of our responsible planning, our stable bond rating was recently reaffirmed by Moody’s Investors Service and Standard & Poor’s Global Ratings, unlike many other states.
That being said, every state, regardless of how much they’ve prepared for a financial crisis, is experiencing financial setbacks. With the passage of the federal CARES Act in late March, local and state governments were able to maintain some financial stability with targeted aid. But the federal government needs to pass a new legislative package to support our small towns and our state government. In particular, we need support that will help us deal with revenue shortfalls and avoid painful budget cuts. The U.S. economy has significantly changed — people are spending less and folks are leaving home less out of concern for public health. Schools and other services have had to spend more money on personal protective equipment and other ways to ensure the safety of students and staff. We will try to preserve them as best possible, but also need the federal government to step up. The time for Washington to act for Maine people is now.
Ultimately, balancing our state’s budget is not simple, but I’m glad that my colleagues and I were able to ensure Maine had some safety net before going into this pandemic, and I encourage folks to reach out to Maine’s Congressional delegation to encourage them to support legislation that helps our state and local governments. And we know that the best way to protect our economy is to continue the public health measures to prevent the spread of COVID-19, by wearing face masks, practicing social distancing, and washing our hands.
Linda Sanborn is serving her first term in the Maine Senate, representing Senate District 30, which includes Gorham, part of Buxton, and part of Scarborough. She previously served four terms in the Maine House, and practiced family medicine in Gorham for 25 years.
(207) 287-1515 | Linda.Sanborn@Legislature.Maine.gov