After so much time spent working remotely in front of computer screens and on the phone, being back with all of my colleagues on both sides of the aisle and in person was a truly joyous experience. What was intend- ed to be a two-day session, beginning on March 10, ran into the wee hours of the morning on March 12. Convened at the Augusta Civic Center in order to remain in compliance with CDC distancing requirements, the full Legislature met to pass a series of important and impactful pieces of legislation. As House chair of the Taxation Committee, and because I’ve spoken about this issue before, I’d like to highlight one hard-fought piece of legislation that was passed last night: the supplemental budget.
The supplemental budget will ensure that we maintain a balanced budget and that we are able to afford the many programs and services necessary not only to keep our state up and running, but also to support our economic recovery as Maine bounces back with gusto from the pandemic. Because the supplemental budget needed to go into effect immediately, it required a two-thirds vote of the entire Legislature, rather than a simple majority. This meant that we need- ed Republicans, Independents and Democrats on board – no easy feat in these divided times.
The supplemental budget includes many critical funding measures. As you may recall, in recent weeks a hotly debated part of the budget included Maine’s tax treatment of the Paycheck Protection Program loans. After hearing from so many of you and working hard with our colleagues across the aisle to find a solution that made sense, we allocated $100 million to exempt Maine businesses who accessed relief through PPP from state income taxes. This relief supports more than 28,000 businesses across the state. As a small business owner myself, I know how critical these loans were to so many of us. Being able to get this extra boost during a really challenging time is huge for Maine businesses.
In this budget we were also importantly able to provide additional relief for 160,000 Mainers who lost their jobs due to the pandemic. I have heard from so many of you who have lost employment over this past year and I’ve seen firsthand how job loss has affected my friends and family. Providing relief to Maine businesses is important, but so too is helping out those workers who were impacted by business closures. This budget measure takes the form of $47 million allocated to exempt unemployment benefits from state income taxes. Without this relief, Mainers who relied on unemployment benefits at some point during the pandemic would’ve been hit with $200-$500 per person in state income taxes.
This budget also ensured targeted relief to direct care service providers and nonprofit providers in the form of $30 million in state and federal money to direct care service providers and behavioral health providers that did not get PPP funds, state grants or any other relief and have struggled to meet the needs of Maine people, especially as COVID-19-related mental health concerns increase. These funds target people who provide support through MaineCare sections 18, 20, 21, 29, 17, 28 and 65. The state will cover $10 million of the funds and receive $20 million in matching federal funds. We have leaned on these health care providers over the past year more than ever before and I was so happy to be able to get them this much needed support.
Outside of these key elements, the supplemental budget also provides support to the Early College Aspirations program for working-class Mainers, invests in a new comprehensive child welfare information system, takes steps to address contamination from “forever chemicals,” promotes the construction of affordable housing in Maine and so much more. After months of hard work, contentious discussions and continued negotiation, we were able to pass this crucial piece of legislation. It took a tremendous amount of work from my fellow colleagues on the Taxation Committee, Appropriations and Financial Affairs Committee and leaders in both parties to reach this point. I am grateful to everyone’s efforts and I am excited about the promising path to economic recovery that lies ahead for Maine.
Rep. Maureen “Mo” Terry, D-Gorham, is serving her third term in the Maine House of Representatives. She serves as House Chair of the Taxation Committee. She is a chef and small business owner with more than 25 years of experience in the food service industry.
Contact her at maureen.terry@legislature.maine.gov.