Governor Mills has submitted her first State budget. Last Friday, as a Republican member of the Appropriations Committee, I received a budget briefing from the Governor’s staff. I appreciated the courtesy and the ability to learn more about her plans for Maine in advance of her budget speech to Maine.
Now that specifics have been made public, I have had a chance to conduct an initial review of the Governor’s budget and am disappointed that it does not live up to her oft stated promise that it would contain a sustainable source of funding for the massive Medicaid expansion. That expansion is primarily for single, child-less, able-bodied adults. Her budget does not contain a sustainable source of funding and will likely lead to future tax increases at the State and local levels.
The Governor has proposed a $8.04 billion budget. That represents an eleven percent (11%) increase over Governor Paul LePage’s last budget, which was $7.215 billion. The budget does not match projected State revenues of $7.91 billion and relies on one-time monies and the surplus left to us by Governor LePage.
To make the numbers work, in the short run, the Governor also relies on stronger 2019 economic growth and reduces projected revenue sharing to Maine towns and cities. Her proposed half-percent increase (instead of three percent) will be more than offset by the unfunded mandate that school districts pay all teachers a minimum of $40,000. Her plan would initially cover those teachers, but not subsequent adjustments to the salaries of other teachers in future years.
Even more concerning than the eleven percent budget increase, spending the surplus, and the use one one-time monies, is the reality that budgets proposed by Governors typically increase as they move through the legislative process. Her proposed budget also does not include money for spending requests by legislators, which are increasing by the day.
The Governor made a big deal out of saying that her budget does not raise taxes. Maybe not now, but even someone with a rudimentary understating of budgeting can see that built in costs from future commitments outstrip projected revenues. If her projections on Medicaid enrollment prove to be too low, the budget gap will grow even larger.
The sound fiscal policies pursued by Governor Paul R. LePage and like-minded legislators, moved Maine away from chronic annual budget shortfalls to a healthy surplus, while lowering taxes and strengthening the economy. People are just starting to realize the benefits of a growing economy and the ability to keep and invest more of what they earn.
The Governor’s proposed budget is not a step in the right direction, it is a step backward to higher taxes and annual budget shortfalls. I recognize that its submission is only the first step in the process, but taxpayers should be very concerned.
As a member of the Appropriations Committee, I will work hard to resist policies that result in higher taxes, more debt and restraints on your ability to get ahead financially. Please make your opinions know to elected leaders.
Nathan Wadsworth, Maine State Representative for the towns of Brownfield, Fryeburg, Hiram, Lovell (part) and Porter. He has a degree in Economics from Montana State University and is currently pursuing an MBA. Please do not hesitate to contact me with any questions, suggestions or opportunities to better serve you. Email: Nathan.Wadsworth@legislature.maine.gov
Phone: 207-287-1440
