Enacted Budget – Fiscal Years 2024-2025
Maine Governor Janet Mills signed the state’s current services budget for fiscal 2024-2025 into law on March 31 to ensure continued operations of state government, providing for $9.8 billion in general fund spending. She called the legislature back into session to consider further budget investments, and subsequently, the governor signed an additional $445 million budget on July 11. With these amendments, the biennial budget totals $10.3 billion in general fund appropriations. According to a legislative staff summary, the biennial budget, after amendments, provides for general fund appropriations of $5.08 billion in fiscal 2024 and $5.26 billion in fiscal 2025, representing annual increases of 14.1 percent and 3.6 percent respectively. The budget is based on revenue projections of $5.21 billion in fiscal 2024 (a 1.1 percent decrease from fiscal 2023) and $5.36 billion in fiscal 2025 (a 3.0 percent increase), including May 2023 forecast upward revisions. After enacted revenue changes and transfers, the budget assumes projected revenue of $5.03 billion in fiscal 2024 and $5.18 billion in fiscal 2025. The biennial budget estimates a beginning general fund balance of $165.0 billion and a balance at the end of the biennium of $39.2 billion. The budget maintains the rainy day fund balance at a record high level of nearly $900 million. The budget establishes a paid family and medical leave program and creates a modernized business incentive program. It also makes historic investments in housing – including rural affordable rental housing and emergency housing – and child care – including enhancing the state’s Dependent Exemption Tax Credit, expanding eligibility for child care affordability program, and increasing child care worker salary stipends. Other budget highlights include extending free community college, pension tax relief and other support for retirees, one-time funding to strengthen emergency medical services, and both ongoing and one-time resources to strengthen delivery of legal services.