Maine Republicans say they won’t back tax or fee increases to fill an estimated $450 million state budget gap.

Gov. Janet Mills is expected to release the budget on Friday with her priorities for continued state funding, ideas on where to cut and possibly “targeted revenues” to fill the hole.

The Mills Administration released a budget memo this week warning lawmakers of the projected gap in the two-year budget and an immediate $118 million shortfall in the Medicaid program.

And while she’s identified revenues to cover the Medicaid gap, the two-year budget will require a range of solutions.

Rep. Amy Arata (R-New Gloucester), a member of the Appropriations Committee, said Republicans have been concerned for the last few years with what they called “gimmicks” used to balance the budget and they feel the state has been spending too much.

“Republicans are 100% against tax increases of any kind, way, shape or form, you can call it a fee you can call it whatever you want there’s going to be a lot of pushback against any sort of tax increase,” she said.

The memo is clear that Mills is not considering increases to broad based taxes like the income tax and that she does not want lawmakers to use the state’s rainy-day fund to balance the budget.

Arata said Republicans agree with Mills about not dipping into the rainy day fund.

“The rainy day fund is sacred to us it has to be there for when we have a big economic downturn,” Arata said. “If we spend it now, we won’t have it when there actually is a rainy day.”

Recent budget projections show that the state needs $11.67 billion to fund state government for fiscal years 2026 and 2027.

Mills wants to preserve what she considers core commitments, including continuing to expand health care coverage, funding 55% of local education, free community college and 5% revenue sharing for cities and towns.

House Appropriations Committee Chairman Rep. Drew Gattine (D-Westbrook) said he and other Democrats want to wait to see what Mills is proposing before taking a stand on potential taxes or the use of the rainy day fund.

The fund reached record highs in recent years and now totals more than $920 million.

“All budgets are tough,” Gattine said. “They require tough decisions. I don’t have too much to say about the specifics until I actually see the specifics.”

The conservative Maine Policy Institute issued a statement Wednesday also calling for the Legislature not to raid the fund and to avoid tax increases. And two sets of House Republicans issued statements, including Rep. Joshua Morris (R-Turner), who has submitted legislation to repeal a new payroll tax to fund the state’s paid family and medical leave system.

“Let’s be clear: partisan, spendthrift Democrat budgets are to blame for this huge budget deficit,” Morris said. “Disturbingly, Gov. Mills is now talking about raising taxes to cover her — and her party’s — irresponsible spending.”