Proposed Budget - Fiscal Years 2026-2027
On January 10, Maine Governor Janet Mills released a biennial budget covering fiscal 2026 and 2027. The budget recommends general fund appropriations of $11.63 billion for the next biennium, an 11.1 percent increase over the enacted level for the fiscal 2024-2025 biennium through the Second Regular Session of the 131st legislature. This includes $11.0 billion in baseline spending, a 5.1 percent increase compared to enacted appropriations for the fiscal 2024-2025 biennium. The remaining recommended appropriations include $13 million for new one-time projects and $604 million to fund annualized costs for the full biennial implementation of authorized programs as well as new positions and targeted initiatives, net of various programmatic adjustments and reductions. On an annual basis, the budget recommendation calls for general fund appropriations of $5.76 billion in fiscal 2026 and $5.87 billion in fiscal 2027, reflecting year-over-year increases of 5.0 percent in fiscal 2026 and 1.9 percent in fiscal 2027. The general fund budget is based on revenue projections, after recommended adjustments, of $5.60 billion in fiscal 2026 and $5.78 billion in fiscal 2027, representing projected annual growth of 0.4 percent in fiscal 2026 and 3.2 percent in fiscal 2027. After transfers and other adjustments, the budget projects a general fund ending balance of $86 million for fiscal 2026. The governor’s budget plans to maintain the Budget Stabilization (“rainy day”) fund at its near record high, while utilizing new targeted revenue changes to help close the state’s projected budget gap. The biennial budget also outlines recommended revenues and allocations for the state’s Highway Fund and Fund for a Healthy Maine (a dedicated fund that primarily receives tobacco settlement payments).