AUGUSTA, Maine (AP) Democratic Gov. Janet Mills said she’ll seek federal funding to make up a $100 million budget shortfall and allow the state to follow the federal government’s lead in forgiving taxes on pandemic aid.

Mills said she wants state departments to start looking for any newly available federal funds that would allow Maine to offer the tax break to businesses and also maintain a balanced budget.

The federal government opted against taxing the forgivable loans under the Paycheck Protection Program.

If the state followed suit, then that would lead to a $100 million shortfall in the state budget, so the state planned to tax the forgivable loans as income while allowing businesses to deduct essential expenses.

The proposal led to an immediate backlash, and the governor changed course.

“I want to work with the Legislature and others to do all we can to pursue solutions that will help small businesses through this time of extraordinary hardship,” Mills said Wednesday in a statement.

Business leaders welcomed the governor’s approach while acknowledging any solution will take time.