As your state senator, my biggest priorities will always be fighting for Maine people and Maine businesses. That’s why I am pleased to announce that in early March the Legislature convened and we passed a supplemental budget. The timing of this couldn’t have been more crucial, as many Maine businesses and workers have been anxiously awaiting necessary relief.
Joseph Rafferty
The measure passed provides real relief to over 28,000 Maine businesses that received funds from the Paycheck Protection Program and more than 160,000 working Mainers. Most importantly, this bill focuses its attention on providing relief to our most vulnerable workers and businesses, the mom-and-pop shops who need the support to survive.
When Gov. Janet Mills introduced her original supplemental proposal in January, no Maine businesses were exempt from paying taxes on funds received through the Paycheck Protection Program. After hearing from businesses around our state about how this would impact them, my colleagues and I got to work. What we voted for and passed was a budget that exempts Maine businesses from paying state taxes on the Paycheck Protection Program funds they received. The last thing we should be doing is having our small businesses paying taxes on money that was designed to help keep them afloat in the first place.
I am proud of the work my fellow lawmakers put in to make this happen. We spent long hours at the negotiating table with our Republican colleagues, and we met them all the way while sticking to our principles, leaving out tax breaks for big, out-of-state corporations and three-martini lunches. This is what fighting for the best interest of Mainers should look like.
Some of the most significant provisions in this budget are the targeted relief to Maine businesses, the protections and support for working Mainers and their families, as well as investments in Maine veteran services. We set aside $47 million to exempt unemployment benefits from state income taxes for hardworking Mainers who lost their job at no fault of their own during the pandemic, including those who are self-employed. This will save Mainers who received unemployment benefits $200 to $500 on their state taxes. To me, this just makes sense.
Also included in the supplemental budget is funding for the Aspirations Program. This program provides Maine high school students with an opportunity to receive academic credits toward a high school diploma, and an associate or bachelor’s degree, through enrollment and completion of certain college-level courses. In other words, this helps support young, working-class Mainers expand their education and explore career opportunities. Anyone who knows me knows I am dedicated to investing in education, and this provision does just that.
Another noteworthy provision within the supplemental budget honors our servicemen and women by providing more than $100,000 in support for Maine veterans. This amendment was introduced by my Republican colleague, Sen. Brad Farrin, and I am thankful he did. We should always be doing our part to look after our veterans who have sacrificed so much for us, and I am proud that we are including this provision.
The bottom line is this: The supplemental budget provides relief where Maine people and businesses need it most at this moment. It provides tax relief to Mainers who found themselves out of work through no fault of their own, it supports independent contractors and it gives relief to Maine businesses. It’s an excellent example of what legislators do when we work together to find common ground and good compromise.
At this moment, Mainers are worried about paying their rent or mortgage, restoring their savings, putting food on the table for their families, and keeping businesses open and running. As your voice in Augusta, we have a responsibility to address those concerns. This supplemental budget does just that. We are investing in the people and the businesses that will help us rebuild both our communities and our economy. It is what the hard-working people of Maine want and deserve.
Joseph Rafferty is a member of the Maine State Senate representing District 34, Acton, Kennebunk, Lebanon, Moody, North Berwick, Wells, West Lebanon and part of Berwick. He can be reached at Joe.Rafferty@legislature.maine.gov.
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