Last week, Gov. Janet Mills signed an historic, tri-partisan supplemental budget into law that will do an incredible amount of good for our state.
With a vote of 119 to 16 in the House and 32 to 2 in the Senate, this budget represents the very thing that sets Maine apart from the rest of the nation – the ability for Democrats, Republicans and Independents to find common ground and compromise for the benefit of all Mainers.
From supporting our aging neighbors to addressing PFAS contamination on farms, investing in our state’s economy through workforce training, providing critical tax relief and more – this budget covers a lot.
For Maine farmers who have been struggling to navigate the evolving PFAS crisis, the budget dedicates $60 million to establish a trust fund to address PFAS contamination and support farmers with remediation efforts.
For those seeking higher education, the budget allocates money for several initiatives to make postsecondary school affordable and accessible for more Mainers.
Through this budget we were able to fund two years of free community college for all students who graduate high school between 2020 to 2023 and enroll in a full-time Maine community college program.
We allocated funding to prevent a tuition hike across the University of Maine System and we successfully overhauled and simplified the Opportunity Maine Tax Credit such that it will provide $2,500 of student debt relief per year over 10 years, regardless of degree type or where someone went to school.
Before this overhaul, approximately 14,000 people were taking advantage of the credit, but many more are technically eligible to do so.
We also demonstrated our commitment to the next generation by allocating funds to set our youngest Mainers up for success. We fully funded universal free school meals in public schools across the state. We leveraged more than $9 million in federal dollars to expand the Children’s Health Insurance Program, which will provide comprehensive coverage to more than 40,000 Maine kids. We also allocated over $12 million to increase pay for child care workers and early childhood educators to strengthen Maine’s child care system.
The budget provides $25 million to support Maine hospitals and another $25 million for long-term care facilities to help address one-time pandemic-related costs. We also allocated $30 million to expand MaineCare rates on an ongoing basis.
As chair of the Legislature’s Taxation Committee, I am particularly excited about our efforts to leverage tax policy to provide direct relief to Mainers in a variety of contexts.
More than 858,000 Mainers will receive $850 direct relief checks as early as June 1. Only full-time Maine residents are eligible to receive a check. To find out if you qualify, visit https://www.maine.gov/governor/mills/relief-checks.
The relief checks will not be subject to income tax. To receive your check, you must file a state income tax before October 31, 2022. If you receive social security, don’t regularly file or have questions about how to file, call 211 or reach out to CA$H Maine for assistance.
Additionally, the budget exempts more Maine retirement pension from income tax, improving the deductions for residents from $10,000 to $25,000 in tax year 2022, to $30,000 in tax year 2023 and to $35,000 in tax years 2024 and beyond. This will be a huge relief for many public employees, including teachers.
We also made permanent an increase to the Property Tax Fairness Credit, which will help over 100,000 Mainers reduce their property tax burden.
And a personal favorite of mine, we permanently expanded the Earned Income Tax Credit, which is the number one tax tool we have to lift families up from the wage gap. With these modifications, more Mainers than ever before will be able to receive financial relief.
This is what it looks like when legislators from across Maine – Democrats, Republicans and Independents – work together for the people of their state. It has been an honor to be a part of this process, and I look forward to continuing this good work moving forward.
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.