Governor Janet Mills last week unveiled a General Fund budget for the fiscal 2026-2027 biennium that “appropriately balances increased costs against flattening revenues by reducing spending on programs and making targeted revenue increases in order to maintain important priorities, like health care, education, and revenue sharing,” said Kirsten Figueroa, Commissioner of the Department of Administrative and Financial Services.

“It rejects broad-based tax changes, such as any increase to Maine’s income or sales tax, and it does not draw from Maine’s near record high Budget Stabilization Fund, achieved under the Governor,” according to a press release announcing the proposed budget.

A report last September had projected spending of $11.67 billion over the 2026-2027 biennium and a structural gap of $636.7 million between spending and expected revenues.

The proposed 2026-2027 budget represents an 11% increase over appropriations for the 2024-2025 biennium ending this June.

Reactions included:

• The proposal represents an “important starting point” for “crafting a final” budget proposal, said Rep. Matt Moone, House Democratic Leader
• A progressive group said it “looks forward to working with legislators to advance proposals for a fairer and more sustainable tax system that brings in robust revenues”
• House Republicans, who favor spending restraint, said a few days prior to the budget proposal that it is important to prioritize ‘needs’ over ‘wants’ and “oppose any efforts to raise taxes on Mainers”

The Governor’s press release about the budget, and links to additional details, may be found here: www.maine.gov/governor/mills/newsroom