Democrats controlling the Maine Legislature on Thursday passed a two-year, $11.3 billion budget that maintains current government operations but delays bigger policy debates until later this year.
The budget bill includes several programs championed by Gov. Janet Mills — including free community college and covering 55% of K-12 education costs — but delays several controversial cuts and targeted tax increases that she had proposed earlier this year. But political tensions were high at the State House as Democrats and Republicans accused each other of refusing to work toward a more bipartisan spending package.
It took roughly 12 hours but lawmakers gave final approval to the budget bill, LD 609, by largely party line votes of 76-66 in the House and 18-17 in the Senate.
For the first time in the more than a decade, Maine lawmakers are facing a revenue shortfall because tax revenues are leveling off and the inflow of federal dollars was declining even before President Trump's election. Democrats are portraying the "continuing services" spending plan as only the first part of a two-step budgeting process.
By passing a baseline budget bill before April 1, Democrats effectively eliminate the possibility of a government shutdown when the new fiscal year begins on July 1. Democratic budget negotiators pledged to then work with Republicans on a second budget bill to address other budget priorities and challenges, including a shortfall in MaineCare, the state's Medicaid program.
Democratic Sen. Peggy Rotundo, who co-chairs the budget-writing Appropriations and Financial Affairs Committee, said lawmakers still need to deal with a budget gap in MaineCare, declining federal funding and any new initiatives. She said that will happen in the second budget bill.
"We will carefully consider how to meet these challenges," Rotundo said. "And it is my hope that we will do so in a way that makes our constituents proud and allays any concerns that our budget is out of control due to runaway spending."
Republicans, meanwhile, accused Democrats of sidelining them during the process of crafting a 2-year budget for the third consecutive time.
Overall, the spending plan includes municipal revenue sharing and 55% of local education costs, while also plugging an existing funding gap in the state's Medicaid program, MaineCare.
However, the budget only funds MaineCare at baseline levels in the second year of the biennium, an issue that will likely be addressed when lawmakers tackle the second part of the budget this spring. It also doesn't include many of the programmatic cuts the governor proposed, or tax increases on tobacco products, online streaming services and recreational cannabis.
Republicans railed against the proposal, arguing that they were once again cut out of the process and that the bill doesn't include changes to MaineCare that will make that program more sustainable.
"It's March Madness that the Democrats refuse to recognize that we cannot continue on this path of reckless spending," said Sen. Jeff Timberlake, R-Turner. "We simply don't have the revenue to continue growing at this rate . . . the budget still contains over $11.3 billion in expenditures and they are still looking to spend $300 million more."
Democrats, in turn, accused Republicans of repeatedly blocking attempts to pass a much smaller, interim spending measure to plug a nearly $120 million hole in MaineCare in the current fiscal year. Democrats said that impasse forced them to quickly move forward with a baseline, "continuing services" budget to remove the threat of a government shutdown at the beginning of the new fiscal year on July 1.
Because of the funding shortfall in the current budget, however, the Maine Department of Health and Human Services has begun reducing or withholding MaineCare payments to hospitals, pharmacies and other health care providers.
Sen. Joe Baldacci, D-Bangor, suggested that some Republicans have been "sleep-walking through this budget" process.
"I understand that you can object, but at some point a decision has to be made, priorities have to met, people have to paid, services have to be provided," Baldacci said. "This can't be an interminable discussion and the last two months we've spent an interminable amount of time trying to work out a compromise."
The budget cleared an initial vote in the House, 74-69, and then advanced in the Senate by an even narrower 18-17 vote. More votes are expected Thursday evening. But the timing of the final votes was in doubt as Republicans proposed more than a dozen amendments — many seeking major policy changes on taxes, spending and welfare programs — or used parliamentary procedures to slow the process.
The House debate stretched from the morning into the early afternoon Thursday as Democrats systematically beat back a slew of Republican amendments containing their policy priorities.
Many of the amendments were sponsored by Rep. Laurel Libby, R-Auburn. Libby was censured by the Democratic-controlled House last month after she posted a photo of a high school athlete she identified as transgender while blurring the images of two other girls to protect their identity. Democrats censured Libby, a move that denied her ability to vote or speak during floor debates until she apologizes.
Libby has refused and the issue has festered ever since, spilling into Thursday's House debate. At one point minority leader Rep. Billy Bob Faulkingham, of Winter Harbor, attempted to apologize on Libby's behalf and end a situation that has poisoned the comity and functionality of the House.
"I'm sorry that this vitriol has affected people negatively, including children. My heart goes out to all children who have been negatively affected by the decisions of adults," he said, adding, "Children should never be used as pawns or targets in a societal conflict waged by adults. Kids deserve to be kids. Mr. Speaker, our country cannot survive if we continue down this path. The vitriolic fever embraced by some people on either side of the political aisle when addressing each other will only lead to our mutually assured destruction."
Several Democrats thanked Faulkingham for his heartfelt apology, but argued that it needed to come from Libby, whose profile has risen as the controversy generated national media coverage and she's been cheered on by some conservative activists.
"We should all understand cyberbullying is wrong, cyberbullying a minor is doubly wrong," Rep. Daniel Sayre, D-Kennebunk said. "Sharing a minor's identifying information to facilitate threats and abuse is wrong. I didn't think I had to say that on the floor of this chamber, but here we are."
A vote to lift the censure was defeated, 74-68.
Mills is expected to sign the budget into law. After the budget was enacted, the Legislature then adjourned the legislative session in order for the budget to take effect before the fiscal year begins on July 1. Mills is then expected to call lawmakers back for a special session so they can continue working on the more than 2,000 other bills that have been introduced.
Republican leaders, however, blasted Democrats for passing the party-line "majority budget" and then adjourning the session only to call the Legislature back for a special session.
"By forcing through a budget that clearly lacks broad public support, they are undermining the principles of democracy," Faulkingham said in a statement early Friday morning. "Democrats have once again resorted to underhanded parliamentary tactics to abruptly adjourn the Legislature—attempting to silence the very voices they are elected to serve."
Democrats said they hoped to achieve bipartisan support on the secondary budget bill.
“Our duty to the Maine people is to keep the government running while ensuring fiscal responsibility in our state budget," Senate President Mattie Daughtry said in a statement. "This continuing services budget prevents a shutdown, upholds our commitments to constituents and allows for further debate on key policy priorities without jeopardizing programs Mainers rely on."
