Pine State News

Governor Janet Mills has proposed a General Fund budget for the fiscal 2026-2027 biennium, amounting to $11.63 billion. The budget aims to balance increased costs against flattening revenues by reducing spending on programs and making targeted revenue increases. Key priorities such as health care, education, and revenue sharing are maintained, according to Kirsten Figueroa, Commissioner of the Department of Administrative and Financial Services.

The proposal avoids broad-based tax changes, including any increase to Maine’s income or sales tax. It also does not draw from Maine’s Budget Stabilization Fund, which is near a record high under Governor Mills' administration.

A report from last September projected spending of $11.67 billion over the same period with a structural gap of $636.7 million between spending and expected revenues. The proposed budget marks an 11% increase over appropriations for the 2024-2025 biennium ending this June.

Reactions to the proposal have varied. Rep. Matt Moone, House Democratic Leader, described it as an “important starting point” for crafting a final budget proposal. A progressive group expressed its intention to work with legislators towards a fairer and more sustainable tax system that generates robust revenues. Meanwhile, House Republicans emphasized the importance of prioritizing 'needs' over 'wants' and stated their opposition to any efforts to raise taxes on Mainers.

Further details about the Governor’s press release can be accessed at www.maine.gov/governor/mills/newsroom.