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Maine supplemental budget goes to full legislature after panel’s party-line vote

Maine supplemental budget goes to full legislature after panel’s party-line vote

Photo: 560 WGAN Newsradio


AUGUSTA, Maine (AP) Democrats and Republicans on the Legislature’s budget committee have agreed to fully match the federal government’s tax relief for Maine businesses that received forgivable pandemic loans, but they’re still at odds over other provisions of the supplemental budget.

The budget proposal advanced to the full Legislature on a 8-5 party-line vote Thursday evening by the Legislature’s Appropriations and Financial Affairs Committee.

Democrats ultimately agreed to Republican demands to mirror the federal benefit for Paycheck Protection Program by opting against treating the loans as taxable income while also allowing deductions on associated expenses. The governor originally balked at the loss of $100 million in revenue.

The supplemental budget also includes $47 million to exempt unemployment benefits from state income taxes and $30 million in state and federal funds to provide relief to direct care workers and nonprofits.

Republicans and Democrats on the committee were at odds, however, over a GOP demand that a two-thirds majority be necessary for spending any further aid that’s expected from Congress.

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