State Legislative Update

Last week, Maine’s legislature passed a “majority” budget, which was signed by the governor. Budget negotiations had been going on since the legislature started their work in January, but attempts to pass a bipartisan emergency supplemental budget failed in mid-March. Legislators moved on and instead passed a larger ($11.3 billion) biennial budget by a simple majority of votes - hence the name "majority budget."

Because this budget passed by a simple majority, and not by an emergency measure (which requires a two-thirds vote), it cannot take effect until 90 days after session adjourns. The legislature adjourned after they passed the budget so that it will take effect in late June, before the start of the new fiscal year. Now, the legislature is back in a “special session” in which they will continue to consider the 2000+ bills that were introduced earlier this year.

What does this mean for nonprofits?

The legislature’s “failure to pass an emergency supplemental budget with Republican support has put health care providers, particularly in rural areas, in a tough spot financially, according to officials.” Critically, this budget does include cost-of-living increases for direct care workers, which Gov. Mills had initially proposed to cut. It also does not limit General Assistance, which was debated during negotiations around the proposed emergency supplemental budget.

What else is the legislature considering this session?

There are many bills related to the nonprofit sector under consideration this year, including potentially eliminating nonprofit property tax exemptions, improving nonprofit-government contracting relationships, increasing the overtime salary threshold, requiring salary disclosure, and more.

If you're interested in getting involved with preserving nonprofit property tax exemptions or improving state contracting, please get in touch! E-mail MAScott@nonprofitmaine.org.