Gov. Janet Mills signed a $445 million budget into law Tuesday that provides start-up funds for a new paid family and medical leave program, money to address the state’s housing crisis and investments in childcare.
“Housing is a huge need and we are addressing it,” she said with about two dozen lawmakers standing behind her in the State House Cabinet Room.
The budget creates a Housing First Program to provide services to those experiencing chronic homelessness; sets aside $70 million to build more affordable housing and adds $12 million to a fund to support emergency housing needs.
The budget also provides $25 million in start-up funds for a new paid family and medical leave program that will allow workers to take up to 12 weeks off to care for themselves or a family member.
Once it is up and running in 2026, workers and employers will share the cost by paying up to 1% of a worker’s wages into the system.
Maine is the 13th state in the country to have a paid leave program.
“It will make it easier for people to balance work with life’s unexpected challenges like caring for a sick child or an aging parent,” Mills said.
White House Press Secretary Karine Jean-Pierre issued a statement on the paid leave program shortly after Mills signed the budget, saying she applauds “states like Maine that are making progress on this critical issue.”
“Paid family and medical leave improves the lives of working families and strengthens our workforce and economy,” she said. “The Biden-Harris Administration has worked to make the Federal government a model by supporting Federal employees in accessing the leave they need and continues to call for a national, comprehensive paid family and medical leave program.”
Mills also touted the new Dirigo Business Inventive Program, which replaces the 20-year-old Pine Tree Development Zone Program. The new businesses incentives are designed to help businesses hire and retain workers and should attract new businesses to the state, Mills said.
Democrats passed the budget last week with just a few Republican votes. Rep. Sawin Millett (R-Waterford), a longtime budget committee member, was the sole House Republican to back the plan.
“I can make the case that it does a lot of good things,” he said Tuesday, noting that it helps stabilize highway funding and offers pension relief.
He said other Republicans could not back the budget because of the spending measures, including the paid family leave program.
“Our caucus was pretty focused on the immediate effect of the increased amount of spending,” he said. “In the overall, I think my caucus was saying this spends too much money, it grows government. They really weren’t interested in my argument that downstream it may help grow the Maine economy.”
In their weekly radio address released last week, House Republicans slammed the new budget, along with the $9.9 billion spending plan passed by majority Democrats in March.
“The Maine state budget does not address the needs of all Mainers, especially our working poor and people living on a fixed income,” said Rep. Abden Simmons (R-Waldoboro).
The budget, which also pays for a cost-of-living increase for retired state employees, has $31 million to shore up emergency medical services and doubles stipends for childcare workers, helps keep the state “fiscally sound,” according to state finance Commissioner Kirsten Figueroa.
The state’s Rainy Day Fund is at a record high of more than $900 million and credit rating companies have given the state strong ratings, according to her office.
“This final budget delivers critical support and services to protect the health and wellbeing of the people of Maine,” Figueroa said in a statement. “Equally important, the State remains fiscally sound — keeping the Budget Stabilization Fund intact and at a record level, ensuring appropriations stay below current revenues, and looking ahead to future projections and long-term goals.”
