Proposed Budget - Fiscal Years 2024-2025
On January 11, Maine Governor Janet Mills released a biennial budget covering fiscal 2024 and 2025. The budget recommends general fund appropriations of $10.3 billion over the next biennium, an 18.5 percent increase over appropriated levels for the fiscal 2022-2023 biennium through the Second Regular Session of the 130th legislature. The budget includes $9.4 billion to cover baseline spending, $55 million for new one-time spending on capital and other one-time uses, and $805 million to cover the annualized costs for full implementation of authorized programs and activities over the biennium as well as new initiatives and positions. On an annual basis, the budget recommendation calls for general fund appropriations of $5.1 billion in fiscal 2024 and $5.2 billion in fiscal 2025, reflecting annual spending increases of 13.9 percent and 2.9 percent, respectively. The general fund budget is based on a general fund revenue forecast of $5.2 billion in fiscal 2024 and $5.3 billion in fiscal 2025, reflecting projected annual growth of 2.8 percent in fiscal 2024 and 2.7 percent in fiscal 2025. After transfers and other adjustments, the budget projects a general fund ending balance in fiscal 2025 of $6 million. The governor’s budget plans to maintain the Budget Stabilization (“rainy day”) fund at a record high of $900 million, 17.8 percent of recommended general fund spending for fiscal 2024. The governor also presented a supplemental budget to send one-time payments to hospitals and long-term care facilities as well as other initiatives. Additionally, the biennial budget 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).