Governor Janet T. Mills at a COVID-19 Briefing Earlier This Year.

Governor Janet T. Mills today unveiled her Administration’s Part 2 budget for the Fiscal year (FY) 2022 – 2023 biennium, a proposal that makes a historic investment in Maine public schools and meets the State’s obligation to pay 55% of the cost of the cost of K-12 education for the first time in Maine’s history.

If approved by the Legislature, the achievement would come more than 15 years after Maine voters first passed a referendum directing the State government to pay 55% of local school costs – the Governor’s proposal which not only finally met the State’s obligation for the first time ever, but would also increase desperately needed resources for cash-trapped schools and hold down local property taxes.

In her budget proposal, Governor Mills also proposes funding a host of bipartisan priorities, including initiatives to improve the health of Maine people, tax relief for low and middle income Maine people; enhanced revenue sharing for municipalities; PFAS remediation; and infrastructure upgrades – all while adding money to the Budget Stabilization or “Rainy Day” fund.  The proposal, which is balanced and does not raise taxes, also leaves approximately $21 million in allocated funds for the “appropriation table.”

“Because of our prudent fiscal management during the pandemic and Federal support. we have a healthy revenue forecast for the biennium.  As a result, we can not only fully fund education for the first time in our history, but we can give money back to the taxpayers through revenue sharing, tax fairness credits for property taxpayers, and income tax relief, for low-income and middle class families,” said Governor Mills.  “This budget proposal focuses on improving the lives and livelihoods of Maine people and on strengthening our state for years to come.

INVESTING IN MAINE KIDS AND MAINE SCHOOLS:

$187 million to meet the State’s obligation to pay 55% of local education costs for the first time in Maine’s history; $47 million to support Maine’s public higher education institutions, including the University of Maine System, the Maine Community College System and Maine Maritime Academy including funds to renovate Maine Maritime Academy’s Curtis Hall; $20 million to increase the Maine State Grant Program’s maximum award from $1,000. to $2,500; $50 million to rejuvenate the School Revolving Renovation /fund, which provides no-interest loans for school repairs across the state.

This would be Governor Mills’ second investment in the funds, extending her commitment to upgrading Maine’s school facilities and providing further property tax relief for Maine families.

“I want to thank Governor Mills for recognizing our System’s very real need for additional investment and the tremendous return we provide on it in the form of talent, development and innovation,” said Chancellor Daniel Malloy, of the University of Maine System.  “Consistent with the bipartisan recommendation of the  Legislature’s Education and Culture Affairs Committee, this level of supplemental funding will keep high-impact education, research and public service and workforce training within reach for all Mainers.”