Around 1 in the morning last Friday, the Maine Legislature passed a supplemental budget after a long negotiating process in Augusta. On Wednesday, Gov. Mills signed it into law.

As someone who worked hard on this supplemental budget with my colleagues on the Appropriations and Financial Affairs Committee, I am proud of the many ways this budget supports Mainers in these difficult times. It includes significant tax relief for businesses that received funds from the Paycheck Protection Program, targeted support for Maine’s direct care service providers and investments in veterans’ services. There is also a measure in the supplemental budget to provide critical tax relief to Mainers who received unemployment insurance in 2020.

When the pandemic hit Maine last year, I started to hear from constituents in every corner of my district asking for help navigating the unemployment system. People in Casco, Raymond and Poland, the communities I represent in the Maine House of Representatives, are hardworking and resilient, and most who reached out to me had never accessed unemployment benefits before. Job loss in my district affected people across many economic sectors, including those who worked at campgrounds and municipal libraries and in retail.

Because of the overload of unemployment cases being processed by the Maine Department of Labor, many of my constituents found themselves in really tough situations. People lost their source of income and were now spending frustrating hours on hold each day trying to address issues with their unemployment claims, all while fearing that if they didn’t get their benefits in time, they might not be able to meet their basic needs.

In the supplemental budget we passed, $47 million has been allocated to exempt Mainers from paying state income taxes on the first $10,200 they received through unemployment insurance in 2020. This will provide critical relief to over 160,000 Mainers whose jobs were affected by COVID-19 and received unemployment insurance in order to make ends meet. This tax relief extends to self-employed business owners and people who saw their hours cut and received unemployment insurance. Without this measure, people who went on unemployment would have been hit with $200-$500 in state taxes per person. This will not only support these individuals, it will also put more money back into our local economy.

Of course, Mainers who lost their jobs or saw their hours reduced are not the only ones who need financial relief after a devastating year. Most folks, even those who were able to work throughout the pandemic, experienced some financial loss as a result of the pandemic. That’s why I’m grateful that the federal government has passed the American Rescue Plan that includes the Child Tax Credit, a measure that will lift over 10,000 Maine children out of poverty. In Raymond, Casco and Poland, I know countless parents who work full-time jobs, often multiple jobs and are still struggling to make ends meet. Between the expanded Child Tax Credit and the direct stimulus payments to 90 percent of Maine adults, the federal rescue package is going to help a lot of Mainers financially.

At a time when so many Mainers are struggling to get by, my colleagues and I in the State House have worked hard to lessen the burden on those most affected by the economic impacts of the pandemic. Here in Maine, we have passed a supplemental budget that will provide significant relief and, coupled with the federal government’s American Rescue Plan, Mainers are receiving support while they get themselves back on their feet after a challenging year.

However, there is more work ahead of us to build back our economy. I recognize that, even with the supplemental budget and the American Rescue Plan, there will still be Maine people and businesses that need more support. Please reach out to your representatives and let us know how we can best serve your needs in the Legislature.

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