AUGUSTA, Maine (AP) Democratic Gov. Janet Mills is offering a compromise on taxing Paycheck Protection Program loans to address a hurdle to enactment of the state budget.

Her proposal, announced Tuesday, calls for the state to match the federal government’s tax relief for more than 99% of Maine businesses that received forgivable loans through the program.

The proposal, if approved, would reduce state revenues by $82 million instead of $100 million.

The administration would cover the additional costs through measures including tapping into funds it had planned to add to the state’s rainy day fund.