Senate President Mattie Daughtry of Brunswick stands as the rostrum of the Maine House of Representatives during a joint session on the first day of the legislative year on Dec. 4, 2024. (Photo by Jim Neuger/Maine Morning Star)
Following a week-long break, lawmakers are diving back into negotiations on the supplemental budget Tuesday after legislative leaders postponed final votes to buy more time to get Republicans on board, though support from the minority party remains unlikely.
The main purpose of the change package is to address the imminent Medicaid funding shortfall this fiscal year. Without the support of two-thirds of lawmakers, that emergency funding will not be immediately available.
The package also addresses other issues, including funding to prevent spruce budworm from damaging forests. However, it includes far fewer initiatives than Democratic Gov. Janet Mills initially proposed. Republicans are pushing to reinstate Mills’ proposed cuts to General Assistance, as well as a change to Medicaid eligibility.
Statements from leadership on both sides of the aisle this weekend make it clear an impasse remains.
Senate President Mattie Daughtry (D-Cumberland) and Speaker of the House Ryan Fecteau (D-Biddeford) called on Republicans to support the change package as it stands.
“Unfortunately, our colleagues continue to demand that policies aimed at removing healthcare and housing assistance from Maine families be added to this budget,” Fecteau said. “We already rejected these proposals and asked Republicans to bring new ideas forward for our consideration. At the end of this week, they informed us that they do not plan to offer anything else.”
Republican leadership responded that their caucuses offered two priorities that if added to the plan would get them on board: reinstating Mills’ proposal to limit General Assistance, which helps municipalities pay for basic necessities for those who can’t afford them, as well as adding work requirements for childless, able-bodied adults to be eligible for Medicaid benefits.
“Failure to pass a two-thirds budget at this point rests squarely with the Democrat majority,” Senate Minority Leader Trey Stewart (R-Aroostook) said in a statement. “They still have complete power over the process and need to realize they can’t approach the supplemental the way they have past budgets — without any Republican input.”
Members of each party have criticized each other for mischaracterizing negotiations. Democrats say Republicans are operating with a take it or leave it attitude that will ultimately hurt Mainers. Republicans say the majority party hasn’t used the delayed votes to adequately negotiate, stating Democrats hadn’t reached out to them until the end of last week.
“It seems like our counterparts on the other side of the aisle are unaware that the state has a half billion-dollar budget deficit,” House Minority Leader Billy Bob Faulkingham (R–Winter Harbor) said. “We’ve offered reasonable cost savings proposals. Rather than come back to us with cost savings proposals of their own, they refuse to negotiate.”
Meanwhile, Daughtry said, “Democrats got to work on a pared down supplemental budget that our Republican colleagues could live with. It maintains the critical health care services in every corner of Maine that all constituents depend on. There are no new initiatives or taxes, only additional funding to prevent forest fires in Aroostook County,” referring to the budworm that is threatening significant damage to Maine’s northern forests.
What’s happened so far
On Feb. 11, the Democratic majority in both chambers cast initial votes in favor of the budget plan. Republicans attempted several floor amendments — including adding Medicaid work requirements, among others — but each ultimately failed.
The Senate paused its debate to briefly caucus about one of those amendments from Sen. Marianne Moore (R-Washington), which proposed modest cost-of-living adjustment for the current fiscal year for essential support workers, after the Mills administration notified providers in December that anticipated increases would not be coming — a move providers and lawmakers argue is a violation of state law.
Democrats postpone final supplemental budget votes, buying more time to negotiate with Republicans
If the simple majority votes stand, the Legislature would be looking at taking the procedurally necessary but largely symbolic step to technically adjourn for the year, starting the clock to allow the budget to take effect 90 days after that adjournment. Two-thirds support is needed in order for the budget to take effect immediately upon the governor’s signature.
These differences are crucial, as Benjamin Mann, deputy commissioner of finance for the Department of Administrative and Financial Services, told lawmakers during public hearings on the supplemental budget that there was only enough funding to continue payments to medical providers roughly until May.
The Mills administration notified health care providers about the potential need to withhold payments ahead of the Feb. 11 votes, reiterating the warning given earlier to legislative leaders and the budget committee.
“They are in complete charge of state government and have contacted us just once in the last 11 days, asking us what would guarantee two-thirds support on the floor,” Stewart said in a statement on Saturday. “We gave that to them.”
Sen. Peggy Rotundo (D-Lewiston), co-chair of the Appropriations and Financial Affairs Committee, which sets the budget, said earlier this month that the committee had considered many of the Republicans’ suggested amendments but ultimately decided they were better suited for the two-year budget.
“The supplemental budget is not the time for debates on large policy changes,” Rotundo said.
Regarding General Assistance, Mills initially proposed limiting housing assistance, except for temporary housing and emergency shelters, to a maximum of three months per household over one year. She also proposed capping the number of times municipalities could exceed the maximum levels for all assistance categories.
During public hearings for this proposal, her administration signaled it was willing to consider these changes in the two-year budget instead and Mills later urged Republicans to accept that, as well.
“Republicans would be wise to support passage of the supplemental budget now and ensure that Maine health care providers receive the payments they need in a timely way,” Mills said in a Feb. 11 statement. “Once the supplemental is done, I will join them in vigorously pushing for much-needed reforms to General Assistance — something that I agree needs to happen — during negotiations on the biennial budget.”
Regarding changes to MaineCare, the state’s Medicaid program, Republicans want the change package to instruct the state to request a waiver from the U.S. Centers for Medicare and Medicaid Services to institute work requirements for childless, able-bodied adults.
In 2017, former Republican Gov. Paul LePage requested such a federal waiver, which President Donald Trump approved during his last term, days before LePage left office. However, when Mills took over, she rejected the waiver.
“It was approved at the federal level by what’s now the current administration,” Stewart said on the Senate floor on Feb. 11. “I have no doubt it will be again the second that we offer it up.”
In addition to these Republican demands, the minority party also objected to the budget plan because of a procedural restriction.
Members of the budget committee had previously reached bipartisan agreement on the plan during late-night votes on Feb. 5. This agreement also included four Republican proposals to require quarterly reports of existing programs, including on fraud and abuse of MaineCare.
However, that apparent harmony fell apart shortly after when Rep. Kenneth Fredette (R-Newport), who was absent for those votes, tried to cast a late vote against the plan but was unable to do so due to a seemingly unforeseen restriction in the joint rules the Legislature passed last month.
The House passed an amendment to alter that rule on Feb. 11 but the Senate has yet to take it up.
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