November 27, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

Maine’s new budget

Education programs in the recently concluded state supplemental budget picked up $110 million of the $345 million spent; tax breaks accounted for another $100 million in one-time and ongoing savings. Along with the money spent through the tobacco settlement, these issues were the winners this session in what traditionally is a brief budget go-round to address emergency matters.

The big loser? That would have been the much-discussed cooperative spirit between Democrats and Republicans at the start of the year. Though their disagreements in session weren’t loudly public, the fact that they tried for weeks but failed to agree on a plan that would have cut independent Gov. Angus King out of the process suggests a deep rift, especially considering that their budget positions didn’t start out all that far apart. The two parties in the Senate came together just long enough to pass bridge spending to cover funding between June 30, when the old year’s budget ends, and late July, when the new one begins, but they may have done that only to avoid being called obstructionist.

The inter-party split allowed Gov. King — and his veto — to direct much of the budget’s conclusion. His laptop program was changed into a technology study group but could well emerge intact, as will much of the needed funding for it as the $30 million in outright spending and a predicted $10 million to $20 million in lapsed balances come in. The governor’s position on general purpose aid to education also hit closest to the mark in part because the Legislature’s Education Committee began by advocating for an unrealistic funding level and didn’t publicly come forth with lower numbers when it was clear the first figure wouldn’t be passed.

With the exception of the referendum-driven and exceptionally silly snack-tax break, lawmakers did well in these strong economic times to offer substantial and sensible tax breaks. They include an exemption on the first $6,000 of retirees’ pensions (that number should be pushed up next session), earned income tax credit, improved indexing of state income tax brackets and a health care tax deduction for self-employed workers to conform with the federal deduction.

The tobacco money also was well-distributed, with the funds set aside for a wellness program particularly important. Based on the impressive results of a long-standing plan to improve diet and exercise habits in Franklin County, the new program holds the promise of significantly reducing disease brought on by obesity and smoking. If it works, it will be a national model. Given the rapidly rising costs in health care, any improvement it makes will be felt in Maine’s budget.

And who knows, with a new wellness program in the Legislature, lawmakers could better off doing a little jogging together rather than spending so much time trying to eat each other’s lunch.


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