Overview
- The Democratic-controlled Senate approved the supplemental budget Thursday, sending the package to Gov. Janet Mills, who said she plans to sign it in the coming days.
- The plan issues $300 payments to roughly 514,000 residents with income caps near $50,000 for single filers and $100,000 for joint filers, structured as a tax refund to avoid federal tax on the checks.
- A new 2% surtax applies to taxable income above $1 million for single filers and $1.5 million for heads of household and joint filers, which nonpartisan estimates say would hit about 2,400 to 2,600 filers and raise roughly $150 million over two years.
- Roughly $292 million will be taken from the state’s $1.03 billion Rainy Day Fund to help pay for the package, following a House vote of 76–73 and a Senate vote along party lines after dozens of GOP amendments were set aside.
- Business groups, including the Maine State Chamber of Commerce, oppose the surtax and the reserve draw, arguing the changes will drain safeguards, dampen investment, and make the state less competitive.