- Mills’s budget increases state government spending by a whopping 11+ percent, a double-digit spending increase. The increase is nearly 585 percent above the last two-years’ average rate of inflation. Contrary to her statements about taxes, this short-sighted budget makes a future tax increase—or massive spending cuts—highly likely.
- Mainers lose the tax cuts Governor LePage proposed last fall. Maine’s income tax climate continues to remain uncompetitive regionally. Tom Brady pays a lower marginal tax rate on his NFL salary in “Taxachusetts” than a Mainer making $51,000. Every earner in New Hampshire continues to do better than Maine families.
- The proposal leaves NO margin for error if real costs exceed the budgeted amount, revenue does not meet projections, or both.
- It runs a $62.6 million shortfall in FY21. The budget is only kept in balance by PREVIOUS LEPAGE ERAGeneral Fund surpluses built up in the last biennium.
- There continues to be no long-term funding for Medicaid welfare expansion. The budget is full of one-time funding gimmicks, none of which will last into the next budget cycle.
- With the use of credit-card-style borrowing for items which could currently be paid in cash, the taxpayers of Maine are left holding the bag, paying unnecessary interest.
- Mill’s teacher salary promise has no explicit funding. If enacted using the EPS formula, some towns’ or cities’ property taxes will rise.
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