Budget Cycle

Governor Submits Budget

Fiscal Year Begins
July 1 

Governor Signs Budget 
10 days after legislative approval

Budget Links

FY2022-2023 supplemental (enacted)
FY2022-2023 supplemental (proposed)
FY2022-2023 (enacted)
FY2020-2021 supplemental (enacted)
FY2020-2021 (enacted)
FY2018-2019 (enacted)

Enacted Supplemental Budget – Fiscal Years 2022-2023 

Maine Governor Janet Mills signed the state’s fiscal 2022-2023 supplemental budget on April 20. The supplemental budget totals $8.67 billion in general fund spending, an increase of $175 million or 2 percent above the originally enacted 2022-2023 biennial budget. It uses $729 million of a projected biennial surplus to provide a one-time $850 direct relief payment to approximately 858,000 Maine residents to manage the effects of inflation and other rising costs. Other tax relief measures include a tax break for Maine retirees, additional property tax relief, and increased tax relief for working families. Highlights of the budget include establishing a new education stabilization fund; two years of free community college; overhauling the student loan debt repayment program; increased pay for childcare workers and early childhood educators; fully funding free school meals; expanded children’s health insurance; increased MaineCare rates; support for hospitals and nursing homes; additional investments in behavioral health; and addressing PFAS contamination. Additionally, the supplemental budget includes a one-time $100 million transfer to the Maine Department of Transportation to repair roads and bridges, preventing the need to bond for transportation money. The budget maintains the budget stabilization fund balance at $493 million, or approximately 12.5 percent of fiscal 2023 general fund expenditures. The supplemental budget dedicates approximately 75 percent of the projected surplus to one-time initiatives.

Proposed Supplemental Budget - Fiscal Years 2022-2023

During the 2021 legislative session, Maine enacted a biennial budget for fiscal 2022 and fiscal 2023 totaling $8.5 billion for fiscal 2022-2023. On February 15, Maine Governor Janet Mills introduced a supplemental budget proposal for fiscal 2022 and fiscal 2023. The supplemental budget proposal relies on an updated general fund revenue forecast adding approximately $822 million in revenue for fiscal 2022 and 2023, representing approximately a 9.7 percent increase over previous projections for the current fiscal year and next.

Proposed Budget Highlights 

Major priorities in the proposed fiscal 2022-2023 supplemental budget include one-time checks to taxpayers, providing tax relief for working families, increasing the budget stabilization fund, and providing two-years of free community college. Funding recommendations include:

  • Returns half of the budget surplus, equal to $411 million, in the form of one-time $500 checks to help taxpayers deal with pandemic driven inflation.
  • Proposes $27.6 million in ongoing general fund dollars by increasing the value of the Earned Income Tax Credit. 
  • Adds $10 million to the budget stabilization fund bringing it to a total of $502.8 million and $30 million to the Medicaid stabilization fund.
  • Provides $100 million to the Department of Transportation to repair roads and bridges.
  • Provides two years of free community college.
  • Increases pay for childcare workers and early childhood educators. 
  • Fully implements updated rates for direct support worker wages, adds and accelerates new cost-of-living adjustments for rates, and raises rates to be sufficient to pay direct support professionals at 125 percent of minimum wage.
  • $25 million in one-time funding to hospitals and $7.6 million in one-time dollars to nursing and residential care facilities
  • Proposes nearly $8 million to improve the child welfare system, with $6.2 million from the general fund.
  • $14.7 million in funds for a one-time increase to the cost-of-living adjustment payment for retirees.