Governor Janet Mills has unveiled her two-year state budget plan, which is already facing strong opposition from Maine Republicans.
The budget aims to manage a tight fiscal situation without raising income or sales taxes. It includes funding for public education, health care through MaineCare, and other priorities, while emphasizing spending reductions in various areas.
Republicans, however, have raised concerns about what they perceive as excessive spending and the creation of 250 new state positions.
They also criticize the lack of increases in MaineCare reimbursement rates for struggling hospitals, with House Republican Leader Billy Bob Faulkingham pointing out that the plan does not adjust reimbursement rates to match inflation.
Governor Mills defended her budget, stating that it reflects a balance between essential services and fiscal responsibility. She emphasized that the state must make difficult choices in the wake of reduced pandemic-era funding.
Both parties agree that the more than $900 million in the state’s rainy day fund should remain untouched, but the specifics of Mills’ plan, including the allocation of funds and spending priorities, have sparked debate.