This supplemental budget proposal exists because Augusta has overtaxed Maine people, even during tough economic times, and is faced with a “revenue surplus.” Lawmakers should use this to pay for adoption of recent federal tax changes in the “One Big Beautiful Bill Act,” such as no tax on tips, no tax on overtime, a new senior citizen exemption, and increasing the standard deduction. Legislative Republicans estimate these changes will cost about $137 million.
Instead Gov. Mills is using this supplemental budget to put more money into a K-12 education system that spends more every year for worse and worse results for Maine kids, and little to no pressure release valve for families. Instead of using this money for more spending, use it to pay for tax rate reductions for Mainers who are being taxed too much already.
Mills is spending about $300 million to send $300 “affordability relief checks” to some taxpayers, taken out of the Budget Stabilization Fund, a pot of money meant to restore the state’s balance sheet in the event of a revenue downturn. The fact that this supplemental budget exists means that the state does not face a revenue downturn, leading many to speculate that these relief checks are not only politically-motivated, but illegal.