You might have recently heard that Maine could face a nearly $1 billion deficit, also known as a “structural gap,” in the next budget biennium. This stems from a September report the Department of Administrative and Financial Services (DAFS) provided the Legislature’s Budget Committee. The report showed the General Fund is expected to have a structural gap of about $637 million in the 2026-2027 biennium, and the Highway Fund a gap of about $313 million.
Following the report’s release, Republicans like Sen. Rick Bennett have predictably pivoted to a familiar talking point about out-of-control spending from Democrats in the Legislature (“Is there any room to tax Mainers more?” Oct. 16). But they fail to provide important context – including other indicators of the state’s strong fiscal health, what the revenue forecast actually means and their own proposal that would have made the gap even bigger.
Article V, Part III, Section 5 of the Maine Constitution requires the Legislature to pass balanced budgets. Unlike the federal government, we can’t deficit spend – we have to craft responsible budgets just like regular Maine families. Since my first term in the Legislature in 2019, that’s exactly what Democrats have done.
In that time, we’ve passed budgets that invest in Maine people and prioritize the well-being of our communities and our workforce. We’ve met our obligations to fund 55% of public education costs, give back 5% of state revenue to municipalities and fund MaineCare. We’ve also made investments to build more housing, expand access to child care and help more older Mainers afford the medication they need.
We’ve accomplished all of this while increasing the state’s Rainy Day Fund to its current level of nearly $916 million, close to the cap established in state law. Additionally, our responsible fiscal management led Moody’s to increase Maine’s credit rating earlier this year, citing “sustained financial improvements” and a “structurally sound budget.”
While it’s true that DAFS is projecting a nearly $1 billion structural gap for the 2026-2027 biennium, more context is needed to understand the full picture. This is merely a projection – not actual revenues and expenditures. As a result, DAFS Commissioner Kirsten Figueroa wrote that the report “should not be considered an accurate reflection of an actual budget shortfall facing state government.”
Structural gaps also aren’t new, something Sen. Bennett should know. Back in the 120th Legislature, when he served as Senate president, the state faced a projected General Fund structural gap of $197 million, roughly 4% of the projected General Fund revenue for the 2002-2003 biennium. The current projected General Fund structural gap for 2026-2027 is about 5.7% of projected General Fund revenue, which isn’t far off from back then. We’ve been here before, and it’s something we can work together to address again.
Additionally, in his op-ed, Sen. Bennett expressed concern about the “fiscal cliff” facing the state. But he and fellow Republicans on the Budget Committee failed to show the same concern in April when the Legislature was considering its supplemental budget. They supported a proposal that would have cost the state nearly $369 million in the next biennium, a whopping $45 million more than the Democratic proposal. Where was all this fiscal anxiety back then?
Republicans also frequently claim that Democrats haven’t delivered any tax relief for Mainers, which is simply untrue. Since 2019, cumulative tax relief enacted by legislative Democrats like the enhanced homestead exemption and improved income tax standard deduction have already resulted in an estimated $285 million given back to Maine people for the current fiscal year, and that number is expected to increase to $750 million by the next biennium. While these initiatives are expected to reduce revenue over time, they are worthy investments in Maine families.
If the projected structural gap does become a reality, Democrats will continue to meet our obligation to craft a balanced budget that pays the state’s bills, safeguards essential services and invests in our future. Because Mainers deserve straightforward leadership who can level with them honestly, instead of simply cherry-picking information to score political points in an election year.
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