Committees are in their final days of acting on legislation
– and legislators are in their final weeks of the session, which is scheduled
to end June 17 but may continue past that deadline. The Appropriations committee continues to
hammer out agreement on a State Budget for the 2016-2017 biennium, but it is
not clear yet how things will come together on tax reform or the overall
budget.
Elsewhere 26 state legislatures have adjourned for the year.
SESSION
Senate & House Sessions – 10 a.m. Tuesday, Wednesday, Thursday,
Friday
LEGISLATION
As of today 1,433 bills have been printed.
www.mainelegislature.org/legis/bills/bills_127th/billtexts/
Ideas for new laws include:
- Help Facilitate New Career Opportunities and
Attract Major Private Investment (Governor’s Bill – LD 1431)
TAX REFORM & STATE BUDGET
News reports are beginning to appear that suggest tax reform
may be separated from the proposed biennial State Budget because lawmakers are
more likely to find agreement on a two-year spending plan than on a tax reform
plan. Governor LePage is making
significant income tax relief a key part of this second term in office and
began the year by making major tax reform part of his proposed 2016-2017
budget. Legislative Democrats countered
in early April with their own tax reform plan.
Republican legislative leaders responded in May with their own tax plan
that does not include a sales tax increase or expansion to various services. Members of the Appropriations committee are
expected to soon finish their work on a revised budget proposal for
consideration by the full legislature in June.
A two-thirds vote will be required for a new budget to take effect July
1, the start of the 2016 fiscal year. It
is still too early to predict what will be in a budget sent to the Governor for
his signature; whether the Governor will veto a budget bill that does not
contain significant tax reform; and, whether there will be enough votes in the
legislature to override a veto, should
the Governor reject the budget that lands on his desk.
KEY HEARINGS THIS WEEK
Business Attraction – A hearing will be held May 26 at 2
p.m. on legislation (LD 1431), submitted by Governor LePage, that grants
significant corporate income tax, sales tax, electric rate subsidy, and other
major inducements to a company engages in a “transformational business
expansion project” that has a projected cost of $25 million or more and that is
expected to result in a “net gain of at least 500 job opportunities.” The legislation includes a right-to-work
provision for the transformational business.
Similar legislation, which set the economic impact threshold at $50
million and 1,500 net new jobs, was attempted unsuccessfully in 2014.
Lower Energy Costs – A hearing will be held May 27 at 1 p.m.
on legislation (LD 1400), submitted by Governor LePage, that repeals the
renewable portfolio standard and net billing energy billing requirements
imposed on competitive electricity suppliers, and requires long-term
contracting approved by the Public Utilities Commission be focused on reducing
electricity rates and costs for residential and business customers and also
reduce pollution.
Federal Balanced Budget – A hearing will be held May 27 at 1
p.m. on a resolution (SP 499) that call for a Constitutional Convention of the
United States for the purpose considering an amendment to the constitution that
requires a balanced federal budget. NFIB
supports this resolution.
KEY WORK SESSIONS THIS WEEK
Medicaid Expansion – Members of the Health & Human
Services committee will work May 27 at 1 p.m. on several bills (LD 633, LD 798,
LD 808, LD 854) that take various approaches to expanding access to healthcare
through the MaineCare program. It is
likely that at least one proposal will be sent to the full legislature for
debate. The LePage administration
opposes Medicaid expansion in part due to future costs the state must
finance. A survey of NFIB members last
year found a majority oppose expansion and a very high percentage believe
future costs will result in tax increases.
Health Insurance Savings – The Insurance & Financial
Services committee on May 28 at 1 p.m. will continue its consideration of
legislation (LD 1305) that creates incentives for consumers to shop for
cost-savings in healthcare services.
Reduced Standard Offer Rates – Energy, Utility &
Technology committee members will work May 28 at p.m. on legislation (LD 1339)
that requires the Public Utilities Commission to reject standard offer
electricity service bids at are not less than 10-cents a kilowatt hour, suspend
the renewable energy portfolio requirement, and seek new bids.
