Legislators are now in extra session days as they slog
through unfinished action on dozens of legislation and vote on scores of
gubernatorial vetoes. The 2015 session,
which is the first since the mid-1960s with a Republican governor and split
party control of the legislature, broke new ground last week when Governor
LePage exercised line-item veto authority over 64 items in the newly enacted
2016-2017 State Budget (all were overridden).
He promises to veto the entire budget later this month.
For the first time since the mid-1990s legislators formally
voted as required by law (Title 3, Section 2) to extend the session by five
legislative days, perhaps fearing rebuke from the Governor if they simply
extended informally. The vote for
extension came on June 18, a day after statutory adjournment date of the session. Legislators can vote another extension of up
to five days if needed. The law
authorizes a separate legislative day to consider any vetoes.
SESSION
Senate & House – days and convening times set daily
LEGISLATION
As of today 1,448 bills have been printed.
BUDGET STANDOFF TURNS INTO VETO SHOWDOWN
The four top legislative leaders – Senate president, House
speaker, minority leaders in the Senate and House – agreed late last Monday
(6/15) night to a 2016-2017 State Budget compromise (LD 1019)that includes
higher spending than sought by Governor LePage and significantly less tax
relief than proposed in January by the Governor or by either party in April and
May.
The Governor proposed a $6.3 billion budget in January. Legislators approved a $6.7 billion budget
last Tuesday night. These numbers do not
include supplemental budgets that adjusted spending levels for 2015 and the new
biennium.
A fact sheet on the tax provisions is not yet available ($135
million net tax cut by 2017 for Mainers, according to a news reports) but here
are some initial highlights:
- Keep sales tax rate at 5.5%
- Keep meals and liquor tax at 8%
- Keep lodging tax at 8% this year but raise to 9%
in 2016 - Conform Maine estate tax to federal exemption in
2016 - Adjust income tax brackets in 2016 & again
in 2017 - Adjust income tax rates (top rate drops to
7.15%) - Phase out itemized deductions as taxable income
increases - Make basic cable and interstate calls subject to
the 6% service provider tax - NO expansion of the sales tax to services
- NO change in corporate income tax rates
An estimated 579,567 individual income tax filers will see a
tax cut by 2017, and 117,509 will see an increase. It is highly likely that small business
owners will fall into both sides.
The Governor issued 64 line-item veto messages on LD 1019,
all of which were overridden, and he is likely to veto the entire bill later
this month. The budget bill was enacted
by a vote of 31-4 in the Senate and 105-42 in the House, which suggest there
are more than enough votes to override a veto.
MINIMUM WAGE
A proposal (LD 92) to raise the minimum wage to $9.50 by
2018, which received initial approval in the House, or raise the wage to $9 by
2018 and preempt local wage ordinances, which received initial approval in the
Senate, has died in disagreement between the two bodies. NFIB estimated that a $9.50 wage would
increase the cost by about $4,478 per full-time minimum wage job and a $9 wage
would increase the cost by about $3,359.
VETO MESSAGES ARTICULATE PLAINLY
Part of the clash between Governor LePage and legislators is
over his business-minded approach to managing state finances. His veto messages often have a directness
that may also be described as “plain speaking”.
Here are two recent examples.
- “I appreciate the effort to think outside the
box and utilize existing resources to train Mainers for high-wage, in-demand
jobs. As with many programs, we often
fund them for lengthy period of time without measuring their
effectiveness. I am flat-funding this
initiative over the biennium with the intend of examining the results after
year one. If the program has exhibited a
positive return to the Maine taxpayer, I will revisit the issue of providing
more resources to this program.” Excerpt
from June 12 line-item veto message on LD 856.
Veto overridden. The Governor may
still veto the entire bill. - “Those who would rather not do, plan. The first line of defense for those who
oppose development is planning, a procedural roadblock to stymie development
without ever having to debate the substance of a proposal. The Growth Management Act now contains 10
State goals. Moreover, comprehensive
plans must inventory 11 separate resources; develop policy related to four
criteria (with one of the criterion being the 10 State goals); and follow
guidelines for implementation that contain 23 different points and
sub-points. Where does it end?” Except from June 16 veto of LD 408. Veto sustained.
IN THE PIPELINE
Numerous unanimous and divided reports have been voted on at
the committee level are awaiting floor action in the Senate and House or are on
the Governor’s Desk awaiting his action.
Budget & Taxes
- Improve tax expenditure transparency and
accountability (LD 941 – unanimous Ought to Pass as Amended committee report)
Economic Development
- Help facilitate new career opportunities and
attract major private investment (Governor’s Bill – LD 1431 – divided committee
report)
Energy & Utilities
- Focus energy laws on energy cost (Governor’s
Bill – LD 1400 – divided report)
Healthcare
- Increase access to health security by expanding
federal funded health care for Maine people (LD 854 – divided report) - Study the design and implementation of options
for a universal health care plan in the State (LD 384 – awaiting final action
in the Senate) - Protect Maine consumers in the individual health
insurance market (LD 1344 – awaiting final action in the Senate)
Labor
- Regarding sick days and benefits of an employee
who is terminated while on sick leave (LD 445 – Ought to Pass as Amended
report; on the Special Appropriations Table) - Promote privacy in social media accounts of
workers (LD 686 – unanimous Ought to Pass as Amended report; on Special
Appropriations Table) - Strengthen the right of a victim of sexual
assault or domestic violence to take necessary leave from employment (LD 921 –
amended to replace bill with increase in penalty; on the Special Appropriations
Table) - Promote minimum wage consistency and pre-empt
local wage ordinances (Governor’s Bill – LD 1361 – divided report)
Miscellaneous
- Improve disclosure procedures in small claims
(LD 451 – unanimous Ought to Pass as Amended report) - Establish a commission to study transportation
funding reform (LD 706 – unanimous Ought to Pass as Amended report)
