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Thursday night’s State of the State address was delivered by Gov. Janet Mills ceded to Republican demands to use half of the state’s forecasted $822 million revenue surplus for a one-time payment to 800 million Mainers.
The governor also proposed funding for two-years of community college tuition free, student debt tax credit, boosted wages to child care workers, and free school meals. However, the payout comes at the Other critically-needed investments can be lostIn building affordable housing, expanding healthcare, protecting workers, as well as responding to the overdose epidemic, the climate crisis, and other issues.
“Many of my friends on the other side of the aisle, like Senate Minority Leader Jeff Timberlake and House budget lead Sawin Millett, have called for a return of half the surplus to Maine people through direct checks. I think they’re right,” the governor said.
Maine Legislators listen to Mills’ state of the state address. | video still via Maine Public Livestream
Going into this year’s negotiations on the state’s supplemental budget, Maine has an estimated $822 million surplus. Mills proposes to use $411 million to send $500 checks to approximately 800,000 taxpayers in Maine.
Some progressive groups have criticized the proposal because it did not prioritize Mainers in greatest need at a time when Maine is experiencing a boom. A dramatic increase in wealth among the state’s highest earners. This increase in inequality is partly responsible for the state’s surplus revenue.
“We can do better than a blind payment that goes to everyone regardless of their ability to weather the storm we’re in. At half the cost, we can lift up people who are falling behind while also making important investments in our communities,” Garrett Martin, president of the Maine Center for Economic Policy (MECEP), said in a statement.
Mills indicated that she isn’t interested in using the Supplemental Budget to fund new, longer-term programs. However, advocates like MECEP claim that the pandemic has made it clear that this is what is needed.
Martin stated that a targeted direct payment would give room for bold investments with the surplus, such as funding a paid family leave program and increasing wages of care workers. It would also help to prevent teachers and retired state employees losing ground to inflation.
“Rather than issue blanket $500 checks to families that have likely seen their income grow during the pandemic, by boosting Maine’s sales tax fairness credit the same benefit could be provided more directly to those whose income hasn’t increased,” Martin said. “Savings generated by this approach make it possible for the governor and legislature to address other shortcomings exposed by the pandemic and further strengthen Maine’s economy.”
Among the other shortcomings exposed by the pandemic that did not get much attention in the governor’s speech are the housing crisis, the overdose epidemic and global warming.
“We will make progress on the opioid epidemic, on improving the child welfare system, on combating climate change, on bringing down the cost of electricity and curbing our reliance on fossil fuels to cut energy costs, and on addressing the devastating impact of PFAS on our health and livelihoods,” the governor said, in her only nod to those significant issues.
Among the governor’s proposals that progressives lawmakers and advocacy groups applauded was a pledge for $12 million in funding to raise wages for child care workers, $30 million to maintain state’s statutorily-required 55% contributions to public schools, funding for Pre-K and universal free meals in schools, and an ambitious plan to provide broadband for anyone who wants it in two years.
Mills’ final State of the State speech before her re-election bid in November was this speech. However, she has yet to officially announce her campaign. Some observers saw the speech primarily as a platform to highlight her achievements and rally a progressive base that had been critical of the centrist Democrat.
In all, the governor said the word “progress” 22 times during the address.
“Maybe I’m reading too much into that,” said Maine Public State House reporter Steve Mistler in a post-speech analysis, “but I felt like that was an acknowledgement that she has some discontent or disenchantment on her left flank with the progressives in her party.”
Photo via a Maine Public livestream.
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