Good evening, and welcome to Maine Public's live coverage of the state of the budget address.

I'm Jennifer Rooks here with Maine Public's chief political correspondent, Steve Mistler.

And we're live at the state House in Augusta, where Governor Janet Mills will speak before a joint special session of the legislature.

She's expected to speak for about an hour and highlight her plan for running Maine's government during her final two years in office.

Steve, I imagine there have been some last minute changes to the speech, given what happened today.

The freezing of grants by the Trump administration.

Yeah.

That's right.

It's really throwing, all states into a sense of chaos because federal, federal funds and grants are supposed to flow to the states have effectively been stopped.

That affects all kinds of functions and state government, which rely on federal funding that includes low income heating assistance for, for people.

Medicaid portals were shut down, which means that states that were trying to process Medicaid payments weren't able to do that today.

There's been you know, this is a big crisis in Congress, too, because it's basically a constitutional crisis and there's going to be some legal disputes.

The governor's already put out a statement about that, and I expect that she'll probably highlight in her speech as well.

We're sitting here and we're talking about the state of the budget address.

But, often we're saying it's the state of the state address.

What's the difference?

Well, the state of the state is usually occurs in years where there's not a budget proposal in, say, Maine works on a two year budget and this is the year where we need to have a budget in place by July 1st in order to fund government for the next two years.

All right.

So Governor Mills is going to outline her priorities and what she's put in her budget.

But the budget's actually been out for a little while, and you've, covered that.

What are.

Let's start with the Democrats.

What are Democrats saying about this proposed budget?

Well, they've been pretty quiet.

And that's because there is a series of cuts in this proposal to deal with a 400 plus million dollar short of projected budget gap in the next biennium.

And so as not to address that, the governor's proposed cutting an array of programs or curtailing them in some fashion, added the Department of Health and Human Services, and those programs, are near and dear to a lot of Democrats.

They've tried to fund those in the past couple of years.

And the governor's basically saying, we've got to ratchet this thing back to deal with this shortfall to protect some other key investments.

All right.

Well, before we go to the speech, we want to let you know that we will have reaction from Republican legislative leaders immediately following this speech.

Steve, though, what are Republicans saying about this budget?

Well, they're they don't love the budget, but they're, you know, they're basic because it includes tax increases, specifically a big tobacco tax increase, the first cigarettetetete tax increase in 20 years by a dollar.

That's one.

And then there's a assortment of other taxes and fees that they've highlighted.

But the tobacco tax is a huge one, and that's the one that's designed to generate most of the revenue to plug this, shortfall.

So, their perspective is this is a, you know, Democrats have passed a lot of these budget spending programs over the past couple of years and left us out.

And it's their problem effectively.

That's the message.

Well, we expect the speech to begin any moment.

Something that's interesting to me.

We mentioned at the beginning that this is for the last two years of Governor Mills, time as governor.

This is going to be the first time she's had to address a budget gap.

Correct?

That's that's right.

So why is there a gap now?

Can you explain that?

Sure.

There's a there's a couple of reasons.

One of them is, is the rising cost of providing services, primarily, health care.

The other piece is that the governor has, two of her key initiatives are, providing 55% of local education costs to, public schools.

That has been something that's been in statute since 2004.

She was the first governor to actually provide that funding.

But there's always been a question about whether it's sustainable.

She's trying to protect that 55% in this particular budget, as well as, free community college for, Maine students who want to attend.

That's been a successful program in the administration's view.

And that's a key.

That's a key, accomplishment that the governor likes to talk about.

And another one is, basically, the basic the other the other piece is just there's a lot of, oh, municipal revenue sharing, sorry, which is basically a slice of the sales tax that municipalities get from the state.

It's 5% right now.

The governor wants to protect that because she sees that as helping municipalities provide services to localities and their local residents.

And Republicans are generally supportive of the revenue sharing and even the education funding.

It's just that they don't love a lot of the other stuff.

And those of you watching in television have probably seen some of the shots we have of the, legislative chambers.

There's a lot of rigamarole that happens before the governor comes in.

A lot of formal introducing of leadership and, VIPs.

Pretty soon, though, we do expect Governor Mills to enter the chamber and begin the speech.

Steve, it's going to be her last state of the budget address.

She's going to be term limited out.

That's right.

And so next year, we'll have a state of the state, when in their final year in office.

And there's some question about what the governor wants to do after their term ends or second term, because there's you can't run for a third, you know, get to be the governor.

There's a possibility.

There's a lot of speculation that she might run for the U.S. Senate at some point.

So those are all sort of swirling.

We can look for signals in her speech if there's any indication of that inclination or not.

So this is something that political people are paying attention to.

I want to ask, in the years that you've covered the statehouse and you've covered the state of the budget, address the state of the state address.

How closely does the final budget end up resembling what is being introduced on a night like this?

Well, it's funny with Governor Mills because she's had Democrats in control the legislature for both of her terms the entire time.

And I would have to say that for the most part, what she's proposed has ended up becoming the budget.

That hasn't been the case previously.

You know, Governor Polis had a really transformative budget in 2014 after he was reelected ahead of a suite of tax reform proposals in there.

And he had a Republican Senate and a Democratic controlled House.

And that budget almost like nothing like what he had ended up proposing.

So, it depends, you know, and it depends on who's control, who's in control in the legislature.

Governor Mills has been, fortunate to have Democrats in control of the legislature.

So she's been able to get most of what she wants.

And but that's caused some tension with Democrats at times because there are Democratic lawmakers who are more progressive than she is, want to do different things like tax increases on, higher earners.

That's what you're hearing from a lot of progressive groups right now to solve this particular budget problem.

They want to raise taxes on high earners in the state to help close that gap, as opposed to cutting some of the programs that they care about.

And just to be clear, the main House and Senate remain, with a Democratic majority.

But a narrower majority than in years past.

Correct?

Very much so.

And what will that mean?

Those close margins?

Well, there's no margin for error for the Democrats.

So if Republicans, you know, at the end of this budget negotiation, to the extent that there is one, if they just they signaled that they're not really interested in bargaining, the Democrats could pursue a majority budget, meaning they could pass it on Partizan lines.

And they've done that.

They've done that for the last three, two budgets.

Excuse me.

And they may end up doing that again.

But the problem is, is that you got to get all the Democrats not only voting for the proposal to get it over the finish line.

But you also, you you also have to make sure they show up.

And we only have like a five seat majority in the House, and a little bit larger than that.

And then that in the Senate, the margin of error is quite slim.

You mentioned some of the, programs policies that are really important to Governor Mills, including the 55% funding of local education and the municipal revenue sharing.

I'm thinking about a couple of things that have happened in the last five years that are really we're sort of progressive for Maine.

One is the free school lunch for everyone, and also now the free community college for Maine high school seniors.

And I'm wondering if those are up for negotiation or does Governor Mills also see those is really something she is committed to making permanent.

Yeah, it's the latter.

She wants to in this budget.

She's trying to protect both of those initiatives, the free school lunches and the free community college.

In fact, she's trying to make it permanent in this budget.

And you know, what's interesting about that is that Republicans, I think, really liked that program.

And, you know, they were they've been very supportive of it.

And so, you know, I think when you hear her speak tonight, she may be trying to remind them of that.

Like these are programs that you guys support.

And you know, what's try to fix this together?

I think that's going to be part of her message.

It's just I'm just not it's not quite clear to me, at least from the signals I've received so far with the statements that the Republicans have said, whether or not they're going to play along with that or not.

Well, if you're just joining us now.

My name is Jennifer Rooks.

I'm here with chief political correspondent Steve Mistler.

We are waiting for Governor Janet Mills to come down the hall and give her state of the budget address.

She's usually pretty private, so it should be any moment now.

The halls are filled with protesters, a lot of conservative protesters dressed in black and protesting any kind of budget hike, any kind of larger budget.

Steve, where do Republicans want to cut?

That's a great question because they're not really outlining any sort of proposal.

They may end up doing that.

You know, just to sort of show like, here's part of our plan.

But, you know, as I said earlier, I don't know that they have much incentive to do that.

And their messaging strikes me as such.

Basically saying, this is Democrats, this is what they're doing.

And it's their problem.

That seems to be the message.

But then maybe they'll have some ideas later on.

But not, you know, so far they've shown no indication of that.

Right.

And there's some serious problems and serious issues that, the legislature really needs to tackle.

One is the number of nursing homes that have closed in Maine recently, right?

Yeah.

That's a that's it seems to be a perennial issue, or at least in the last few years.

And, you know, that's that's I'm not sure how that's addressed in the budget per se, but it's probably if it is, it's probably not going to be enough to actually address the totality of the problem.

Yeah.

And we're looking at, a new report out just today saying that, you know, we all know that Maine needs more housing, that the state is fast as it's trying, is not building housing fast enough.

And we may see a change in the way that government and state government, presses and cajoles and even punishes towns and cities that do not encourage more housing.

That's right.

And that happens to be an issue that's very near and dear to the to House Speaker Ryan Fecteau, who's returned after being turned limited.

Housing has been a key issue for him.

When he was speaker the first time, first two times.

And it's I suspect it'll be an issue for him this time, too.

It's also an issue that, affects a lot of people, right?

As you mentioned.

And it touches everybody.

You know, we've there's been a problem with homelessness in this state as a result of some of the housing crisis and the rising costs.

I mean, there was, there was some data, data in, in the Portland Press Herald the other day that showed, like the median price in each county.

And it is stunning to see how much a house costs, even in places like Piscataquis County.

These these are places where, you know, it used to be a you could get a, you know, huge house for not a lot of money, but that's just not the case anymore.

And this, of course, a critical issue for the state because workforce is tied to this.

When we hear about a nursing shortage, a teacher shortage, a law enforcement officer shortage, every manufacturing.

When we hear this, we hear employers say we try to recruit people that, but they don't have housing.

And so it's really one of these, you know, snowballing issues, very important.

But how does the state help solve it with a budget gap?

That's exactly right.

Because, you know, a lot of the a lot of the thinking is, is that you need to encourage or provide subsidies, at least with the Democrat state, that you have to provide a subsidies and that sort of thing to in order to address the housing problem.

Republicans take a different view.

They believe that there's market forces that are at work and that, government intervention actually inflates the problem so that, you know, that's sort of the dichotomy in the legislature and the difference of, of how to deal with it.

But, you know, there's not a lot of, money in this budget to help with that.

And, you know, I know that that's going to be an issue.

And I know that's something that, like I said, House Speaker Ryan Fecteau cares deeply about.

Yeah, we mentioned that there are protesters in the hallway.

It's very busy out there.

Don't know that this is the reason that this address is being delayed, but it is possible.

The reason for it, Steve, when I arrived tonight and I've I've covered a lot of these.

I noticed a lot more law enforcement officers than I usually do.

We really a lot more.

And I don't know if there really were more law enforcement officers or if they were making themselves more visible to, you know, I don't know the answer to that, except that I did.

You know, I have I'm actually pretty friendly with a lot of the, the guards here because we see them all the time when the place is dead.

But yeah, Stade de balls, they've all said that.

Basically that.

Yeah, this is increased presence.

And I would just say that increased security presence in the statehouse complex, whether it's here in the statehouse or across the way at the Burton Cross building that's been a big, initiative by the Capitol Police in the last couple of years.

And so we're seeing a lot more, police around the, premises, whether they're parked in cars around the complex or just in the building themselves.

And, you know, that, again, is just the response to, you know, how heated things can get sometimes in politics and especially in the last few years.

Yeah.

We've seen, dogs sniffing for explosives.

We've seen devices that can sense if there's anything in the air, any kind of, poison in the air.

I mean, really is such so much more things that are high tech.

A just a really a different feeling than the the many decades that you and I have been coming up here.

Steve, I'm wondering about the tenor of the legislative session so far.

I know that it's young.

Yeah.

But here we are with a new federal administration.

New presidential administration.

Has that already affected what you are hearing in the hallways?

Not so.

Well, what I would say is, I think the change in the, in the power dynamic, even though it hasn't resulted in the Democrats losing their majorities here, that the slimming of their majorities or the narrowing of those majorities has certainly, I think, made Republicans.

It's emboldened them a little bit, again, giving them a little more confidence.

You know, just two years ago, they were really out in the wilderness after the, midterms in 2022, they had lost more seats in both chambers.

They've really put a lot of effort into trying to get some traction in the legislature, get more people in in legislative seats.

And, you know, I think they feel like they've they've achieved that even though they haven't achieved any majorities in either chamber.

So I think you're seeing a little more confidence from Republicans.

Whereas before they were, you know, they were like, really like I said, out in the wilderness.

But now I think they feel like they have a little bit of purchase and that they can, you know, maybe even have a little bit of bargaining power if they want to do that.

And, like I said before, with the budget, not sure that they want to, I think they want the Democrats to own the budget.

Through the years.

Nevertheless.

But, it's kind of like.

He doesn't know go and the sound of the Herald being obscured by the protesters in the hallway.

But the Herald announcing to the joint session of the legislature the arrival of Governor Janet Mills will be chaired.

Pleased to welcome the Honorable Janet Mills, governor of the state of Maine, accompanied by the Honorable Valerie Stanfill, Chief Justice of the Maine Supreme Judicial Court.

Governor Mills, arriving in the legislative chamber, of course.

Reading.

Leadership.

Guessing, hoping to get to the dais as quickly as possible.

Given the delay.

For those of you listening on radio and who follow this sort of thing dressed in a blue suit, white shirt, smiling.

The chair would like to thank this evening's Herald specialist, Keegan Wyman of the Maine Army National Guard.

When he hopefully arrives in the balcony, we would love to rise and greet him from the convention again.

We would like to thank the specialist, Keegan Wyman of the Maine Army National Guard.

Would he please rise and accept the hearty greetings of the convention?

The chair would request the governor, Janet Mills, to please step forward and address the Joint convention.

Thank you.

Thank you.

Oh.

Okay.

Now let's break.

Thank you.

Thank you, thank you.

Madam president, thank you, Mr. Speaker.

Madam chief justice, Mr. attorney general.

Madam Secretary of state.

Up there somewhere, Mr. treasurer.

Chiefs.

A badass, I believe is here.

Chief Nicholas, thank you for joining us.

Members of the cabinet, including our newly confirmed commissioner John Cohen.

Members of the 132nd legislature and esteemed guests.

Tonight, we gather for the time honored tradition of a governor's address to you.

The 186 public servants who collectively have been chosen to represent the interests of 1.4 million people of the state.

We just broke that threshold, you know, you remember one year ago today, one year ago this week, we were actually starting to recover from several deadly storms, storms that had devastated communities up and down the state.

We responded with the largest investment in storm relief in state history to rebuild our working waterfronts, our critical infrastructure and local businesses.

That funding that you all authorized was significant, but it was merely a down payment on the rest of the work ahead to prepare for the violent storms of the future.

So as the very first measure of this session, we've come together again to introduce L.D., introduce L.D.

one, a bill that directly responds to the interim recommendations of our rebuilding commission to prepare our homes and public infrastructure against future storms.

And so I want to thank Hannah Pingree of director of my policy office and for spearheading this measure, and, of course, Bob Kerrey, our superintendent of insurance, for his contributions to this important legislation.

I also want to thank thank President Daughtry.

Senator.

Excuse me, Senator Daughtry.

Speaker Fecteau, Minority Leader Stewart and House Minority Leader Falkenhayn for sponsoring this bill.

L.D.

one is the next step in fortifying our state and our economy from the type of damage that we experienced a year ago, and that we are bound to see again.

This bill has no general fund impact, so send L.D.

one to my desk.

I will sign it.

We gather tonight during a period of transition as a new administration takes shape in Washington.

The new president has issued a flurry of orders, and he promises others it could affect our biennial budget and the very way we do things in our state and other states.

Just yesterday, the president directed a halt to nearly all federal loans, grants and other financial assistance.

Like many of you, I have serious questions about the extent and scope of this decision about the impact on Maine people, Maine industries, schools, small businesses, the elderly, and our most vulnerable.

And about his legal authority to issue such an edict.

My administration is evaluating the effects of this order, but it's already clear that it's causing needless chaos and confusion that could turn into real and serious harm.

I want to reaffirm for the people of Maine, though, as with any administration in Washington, if the president does something good for our state, I will support him.

If he does something that would harm our state.

I will firmly oppose him.

Time will tell what path the president and the new Congress choose no matter what.

I ask this legislature to join me in putting the people of Maine first.

The people we serve, they think for themselves.

They take care of their neighbors, and they stand together when things get tough, regardless of their differences.

And so can we, the people of Maine, expect us to get things done regardless of what happens in Washington.

Drawn from 16 counties across the state of Maine.

You bring diverse views and backgrounds and beliefs to this capital to create positive change and make our state a better place.

Each of the bills you'll debate this session is designed to change things for the better.

But the most consequential and complex tool we have to affect the lives of Maine people is the state budget.

And that's the bill I want to talk with you about tonight.

For six years, I've introduced balanced budgets and with your support.

These budgets have sent historic amounts of money back to Maine schools, Maine communities and Maine people to create the conditions for strong economic growth.

Nearly 40% of state revenue goes right back to local schools and local governments, with the hope that those funds will relieve the burden on property taxes assessed at the local level, alleviating the burden of those taxes, and investing wisely in the things that bring jobs that expand our workforce and that protect those in need, will keep us on the path to more economic growth.

Excuse me.

Well, I'm proud to report to you that Maine's economic growth is outpacing the national average, including the rest of New England, and it's outpacing even large states like New York and California.

In fact, over the past six years, in spite of the pandemic, Maine has experienced more economic growth than it did in the entire 14 years before I took office.

Our state's credit ratings have been upgraded to the second highest possible rating, after being downgraded during the previous gubernatorial administration, and that's a reflection of what the credit agencies themselves have called our strong fiscal governance.

Maine's unemployment rate has remained below 4% for three years straight.

One of the longest stretches ever, and it's been consistently below the national average.

The number of people working in Maine is at an all time high.

The average salary of a Maine worker has increased by more than 25% from 2020 19 to 2023.

Our budget stabilization fund is near its record high limit.

In fact, this emergency fund has grown by nearly $720 million since I took office.

Last year, more than 17,800 new businesses opened up in Maine.

We're proud of that.

And one person who's been pretty instrumental in bringing about Maine's remarkable economic growth is Commissioner Heather Johnson, author of our ten year Economic Plan.

Maine native with national credentials.

Commissioner Johnson has championed innovative new businesses.

She's promoted free community college, and she's fought for universal, high speed internet for all Maine people.

Another economic driver and a boon to our state.

Now, to my dismay, Commissioner Johnson has announced that she'll be pursuing new opportunities come March.

But I want to thank her for her six years of hard work making Maine a better place to live.

Thank you.

Heather.

I'm proud of our economic accomplishments.

But some folks might be thinking, well, so what?

A strong GDP isn't making my groceries any cheaper.

A big rainy day fund isn't helping me buy a house.

A low unemployment rate isn't making a dent in my electric bill.

Well, I hear you.

The cost of living in Maine, as in much of America, is too high.

The price of fuel, the cost of supplies, utilities and labor have driven up expenses for families all across the country and have impacted the budgets of nearly every state.

And so I welcome a robust discussion among Democrats, Republicans and independents during this legislative session because I want everyone to benefit from the availability of good jobs, a good public education, and good health care in our state.

Those are the things that allow every person to be their best selves.

Well, not everyone is feeling it.

Our economy is strong and that strength is reflected in recent budget surpluses.

Over the past three years, for instance, we've ended every fiscal year in the black.

In 2022, our our budget surplus was $562 million, in 2023 was $141 million in 2024, nearly $94 million.

But last year, we could see that these state revenues were leveling off as federal stimulus funds faded and as the economy returned to normal following the pandemic, that was no surprise.

Most other states across the country, including many in New England, are seeing revenues level off to.

At the same time, programs that people widely support like education, revenue sharing, free community college, school meals they're all costing more.

The price of goods, the cost of fuel, equipment, technology and labor all impact our baseline budget for K-12 education.

School meals, higher ed corrections, public safety, and other services.

These baseline expenses also generate some of the increases included in this proposed budget.

Maintaining the state's share of K-12 education alone costs an additional $156 million over the biennium, over and above the more than $2.8 billion in the baseline budget.

That's K through 12 education.

On top of that, we are required by a constitutional amendment passed in 1995 to pay down the debt of the to the teachers retirement Fund.

That alone costs an additional $30 million, bringing the total cost of that item alone to more than $470 million over the next two years.

That's a debt we have to pay well for some of the same reasons.

Operational costs for hospitals, nursing homes, doctors and nurses are also increasing.

And at the same time, people are catching up on medical procedures that were postponed during and after the pandemic.

And because our economy has improved, the federal share of those medical costs, or FMap for the Medicaid program has gone down, meaning we have to cover the $63 million the federal government is taking away from us for this coming biennium alone.

Well, higher operational costs and a leveling off of revenues have merged to produce a tougher than usual budget environment this year.

We saw this coming, which is why I asked the legislature last year to reduce spending by amending certain programs and to set aside $107 million for this coming biennium.

That didn't happen.

And instead, measures were supported by people from both parties, which added spending on to the budget.

Lawmakers then sent more spending bills to my desk, which I did not sign, so they did not become law.

And some folks, again, not just Democrats, even tried to advance the spending bill.

It would have added another $117 million.

We stopped that too.

Now, I say this not to wag a finger at anybody, but simply to acknowledge that regardless of whether you're a Democrat and independent, a Republican, the urge to say yes to well-meaning measures, especially at the end of a long legislative session, is very strong, and it's difficult to say no to last minute appeals and heavy lobbying.

My friends, this time around, we simply cannot say yes.

The time for hard conversations and tough decisions is here.

Starting with the supplemental budget.

In the supplemental budget, I'm asking you to close a current gap in mainecare that jeopardizes our timely payments to hospitals and others.

That gap is the result of four things the federal government requiring us to keep people on mainecare during and after the pandemic, an uptick in medical procedures, health care services.

As more people went back to the doctor after the pandemic.

Three an increase in the cost of those services because of inflation and for the practice of cost reimbursement, which does not allow the state to control those costs, something we're trying to move away from.

Any of those things on their own might not have been troublesome, but together, they're they're very concerning.

We will need to address this shortfall promptly and within existing resources.

And so I'm proposing to use the additional revenue we have taken in from this current fiscal year to cover that gap.

Maine patients and providers need you to approve the supplemental budget in a timely, bipartisan manner to fulfill our obligation to hospitals, nursing homes, and others.

Their budgets and their patients cannot afford disruptions and delays.

So I urge you all to please approve this funding.

Now let's turn to the biannual budget.

Another place for some tough choices will be required to fund every program.

In current law.

Every bill already enacted.

Every program already authorized.

That would cost a minimum of $11.67 billion over the next two years, 11.67 billion.

Current law.

That's very and that actually is very highly an underestimate because because costs have actually grown since last October when that number was calculated.

On the other hand, the state is expected to take in about $11.2 billion in revenue.

I don't have to spell it out for you.

That's a budget gap.

Now, Maine is far from the only state facing such a gap.

In fact, many states are red and blue states both.

Colorado is looking at a shortfall of around $750 million next year.

Washington State is facing a 10 to $12 billion budget gap.

Nebraska, a Republican led state, is facing a $432 million shortfall.

Iowa, another Republican led state, is looking at 1A1 point $1 billion budget gap, one driven not by spending but by tax cuts.

The point is, the budget constraints are not unique to blue states or to red states.

This year.

Every state is facing fiscal challenges right now, and for a variety of reasons.

I'm pleased to say that Maine is in better shape than many other states, but we have work to do to enact a balanced budget as required by the Maine Constitution, one that provides stability and one that protects public safety.

One that preserves a basic social social safety net and one that promotes the continued growth of our economy.

That work will be hard, but we've done it before.

It's easy to forget that of the 20 of 20 major money bills in the last six years, supplemental budgets, biannual budgets, highway fund budgets, 16 of those 16 of 20 were enacted with bipartisan support across these various spending bills.

Members of the minority and the majority parties voted together to change the lives of Maine people.

We enacted Medicaid expansion as voters told us to do.

We achieved 55% state funding for education for the first time in Maine history, putting funds directly into the classrooms to benefit Maine kids.

We fully restored revenue sharing to 5% after had been severely cut by the previous administration.

We're sending a lot more money to towns and cities for fire, police protection and the like so that those costs will all be passed on to the property.

Taxpayers.

We delivered $850 checks to Maine taxpayers.

One of the strongest inflation relief programs in the nation.

And later, another $450 in winter energy relief payments.

We did that together.

We expanded property tax relief to keep more money in the pockets of Maine taxpayers.

Maine residents, especially.

And we became the second state in the nation to fund universal free meals in the public schools, erasing a divide that only stigmatize kids whose families have less.

We delivered two years of free community college to recent high school grads, bringing higher ed within reach of more students and creating a direct pipeline for trained workers.

For employers.

We expanded student debt relief to all graduates, not just those who attended Maine schools, encouraging them to work here in Maine, and that tax credit is now one of the strongest student debt relief programs in the country.

We enacted housing tax credits that are spurring construction across the state, and we developed a nation leading Housing First program to end chronic homelessness.

And we invested hundreds of millions of dollars in rate reform to improve mainecare reimbursements for many health care providers and to base those increases on objective criteria, not just on who lobbies more effectively.

So I'm grateful to you in this room, both Democrats and Republicans and independents who contributed to these and other achievements.

My budget proposes to Maine.

These maintain these core commitments to Maine people providing affordable health care, fully funding education, protecting the public safety, sending money back to our towns and cities in order to reduce property taxes, and keeping the doors of opportunity open for all people.

This isn't reckless spending, as I've heard some say.

Rather, if we did not do these things, hospitals would see more uncompensated care.

Property taxes would go up and tuition to higher EDS would certainly rise.

Stealing from Peter to pay Paul never works.

I should know they're both my brothers.

Now let's talk about health care.

I've long said that we can't have a healthy economy if we don't have healthy people.

We all know it's pretty hard to hold down a job or pay attention to school.

Support a family if you're sick, or taking care of someone who is.

I'm proud that we've expanded access to health care to more than 100,000 people in Maine, as the voters told us to do.

And that expansion group is funded 90% by the federal government.

In recent years, you also expanded health care for children to children with incomes, families with incomes of up to 300% of federal poverty level.

Recognizing that, as we all do, keeping children healthy promotes better outcomes later in life.

Last year, there were about 133,000 kids run in Maine care.

That's up from about 100,000 in 2019.

Those are the children alone.

At the same time, nearly 70,000 people have come off the Maine care rolls as a result of the unwinding required by the federal government.

And just recently, nearly 65,000 people have enrolled in private health insurance through Maine's state based marketplace cover meager gov.

Under the Affordable Care Act, a larger enrollment than ever before.

Protecting the health care of Maine people.

Particularly our most vulnerable and those who cannot afford health insurance.

It's important.

And that's why, in this budget, I'm proposing $122 million a year to stabilize the Maine care program over the biennium.

Nearly 400,000 people, including children, the elderly, people with serious disabilities, pregnant women, veterans are enrolled in Maine Care.

They should not have to choose between getting medical care and going hungry, or going without heat, or being evicted from their home because they've had a heart attack, or had a car accident, or had a cancer diagnosis.

In this budget, we're also strengthening our children's behavioral health system, including fully funding a residential psychiatric treatment facility for youth, the first of its kind in Maine, so that kids are sent out of state in order to get care.

I also propose more money for therapeutic foster care, along with a screening system to better identify children's behavioral health needs.

We know that emergency rooms are not where a child's needs are best met.

All these measures are at the heart of our recent settlement with the U.S. Department of Justice to improve children's behavioral health services.

I read a story recently about a family whose son waited nearly a year for treatment, beds for severe behavioral health needs.

His mom, Jessica, said, quote, we don't have choices and he's in constant distress.

We need to figure this out and quote Jessica's right.

With the legislature's support, we have invested more than $260 million in recent years to improve these services.

With this budget, we can and will do better by children with severe behavioral health needs and their families.

Justice.

Health care is a central part of this budget.

So too is education.

Every child in Maine deserves a good education, regardless of their zip code, regardless of their family's assets.

I know you agree.

In 2021, with that goal in mind, we met the state's obligation to pay 55% of local education costs for the first time since the voters told us to do so in 2004.

It took a long time, but we got there.

My budget to keep us there.

My budget includes an additional $156 million to continue this commitment.

Investing directly in our schools, teachers, staff and students, and preventing the entire cost of public education from being passed onto the property.

Taxpayers.

Now, I know that sounds like a lot of money.

And it is fully funding education is the largest cost driver in state government, behind Medicaid.

In 2019, the state paid nearly $1.1 billion towards the cost of K-Through-12 education.

Having achieved 5,055%, that total now stands at $1.5 billion per year.

It's a fact of life.

These costs keep going up, and we have an obligation to our children to pay them.

In 2021, we also passed national leading legislation to ensure that no Maine child goes hungry during the school day.

I'm now proposing another $6 million, for a total of 126 million over the biennium to continue this popular program so that no child tries to learn on an empty stomach.

Together, we also increased funding for career and technical education centers by more than $20 million over the last five years.

All of you agree.

I know that's a good investment.

And in 2022, we made two years of community college free for recent high school graduates impacted by the pandemic.

We believed that not only would it allow students to pursue higher education debt free, but that it would make ready a trained workforce where it was sorely needed in certain sectors of our economy.

And that it has done and continues to do.

In the two years since then, 17,000 more than 17,000 students have enrolled in in Maine Community College tuition free.

Hundreds of those students then transferred to four year colleges, and they contributed to the highest increase in enrollment in the University of Maine system in three years.

Cameron Beers of Edington, the young person who studied welding at the United Technology Center in Bangor.

She then used the Free Community College program to enroll in welding classes at Eastern Maine Community Center Community College.

After she graduates, Cameron intends to work full time and take courses at the University of Maine, as well.

Cameron is a shining example of the success of this program.

Over the past several years, we've funded that free community college program, one on a one time basis to evaluate whether it's working.

I think the answer clearly is yes.

And the time has come to make free community college permanent.

For recent high school graduates.

That's what community colleges.

I hope you'll support this investment in my budget.

Importantly, the budget also includes $41 million for a 4% increase for all of our public higher ed in Maine.

The University of Maine System, Maine Community Colleges, and the Maine Maritime Academy to cover basic operational costs.

We have to make sure that a college education in Maine remains affordable, and we cannot ignore the economic contributions of all of our higher ed, including the world renowned research going on at our one institution, the University of Maine.

Thank you, President Ferrini-Mundy and Chancellor Malloy, for your leadership as well.

Thank you.

As I mentioned, together we have made historic investments in education to boost our public schools and hopefully fight property tax increases.

In 2022, we also made historic investments in, In municipal revenue sharing.

Finally, we restored revenue sharing to 5% for the first time in 13 years, sending more than $260 million last year alone to cities and towns across Maine.

By contrast, in 2019, revenue sharing was only $74 million to our cities and towns.

My budget includes a total of $561 million to maintain the statutory statutorily required level of municipal revenue sharing.

That's about $284 million a year, going directly back to cities and towns in 2027.

And that increase makes a big difference to our communities.

As Auburn firefighter Michael Scott said a few years ago, quote, any additional revenue coming into the municipalities that doesn't come straight from property taxes always makes it a little bit easier for the municipalities to figure out their budgets.

End quote.

Now, with these large increases in funds coming from state government, I fervently hope that towns, cities and schools will find better ways to share and coordinate services and personnel.

Regionalized programs save money and reduce the burden on our property tax payers.

Stabilizing property taxes is important, and we also have to bring down other costs related to home ownership.

You passed and I signed into law expansions of tax relief programs like the property tax Fairness credit, the homestead exemption, and the State Historic Rehabilitation Tax Credit to promote housing development.

You also passed and I signed into law historic new tax relief programs like the Affordable Housing Tax Credit sponsored by Speaker Fecteau.

You even let Speaker Fecteau move into his own accessory accessory, accessory dwelling unit Adu right off the House chamber.

He's back.

My budget maintains these significant programs, and it maintains funding for our Housing First program as well to end chronic homelessness.

We expect funding applications for at least four Housing First properties to be awarded this spring as scheduled.

I'm also proud to say that my budget dedicates $3 million in one time funding for the very successful Mobile Home Park Preservation Fund that we created last year.

That fund has already preserved housing and prevented eviction for hundreds of people across Maine.

Zach Walker, who lives at Blueberry Fields Cooperative in Brunswick, which was recently purchased by the residents, says he's been, quote, basking in the security that will never have to worry about what's going to happen in the future.

End quote.

These folks can now stay in their homes, continue to pay rent, keep their jobs in the community.

It's money well spent.

The budget also invests in public safety after the tragedy of October 25th in Lewiston.

We established a commission of distinguished experts, as you know, to determine the facts surrounding that horrific event.

Following their report, we authorize in an independent after action review of the law enforcement response, as well.

That review recommended measures to improve communications and coordination in the event of another such tragedy.

We are requesting in the budget some additional positions to meet those recommendations and to strengthen our response to future emergencies.

As an aside, the Lewis and Commission also noted that Maine's extreme risk protection law, so-called yellow flag law, could have been used to remove the perpetrators guns before that tragedy occurred.

And last year, we strengthened that law to clarify and streamline, streamline the process further.

Last week, advocates submitted signatures to force a referendum that would directly undermine our current law.

Opponents of the current law argue that family members should be allowed to petition the court for removal of a weapon.

Not just law enforcement, that a mental health assessment is not necessary, and that maybe it stigmatizes people with mental health illnesses issues.

Well, I agree that all people who have mental health issues are not violent, you know, and our law does not require a diagnosis or lengthy exam.

It simply asks a medical provider to understand a person's frame of mind and determine whether that person poses a threat to themselves or others.

I think about this.

The words suicide or suicidal were use more than 300 times by law enforcement to describe the state of mind of the individuals whose weapons have been removed by court order in recent months.

This law is not a burden.

These are folks who are in crisis.

And now, thanks to the mental health assessment, they are now being connected, perhaps for the first time, to Maine's mental health system.

The law provides due process and it will survive legal scrutiny.

And I don't believe a private citizen should have to navigate what can be a complex and confusing court procedure by themselves, especially when they're in the middle of already difficult circumstances.

I believe it's the government's responsibility, not that of a private citizen, to protect the public from gun violence.

Right now, law enforcement officers across Maine are taking this law seriously.

They've been trained.

They're using the law on a daily basis to remove firearms from those who should not have them.

672 times as of yesterday, as York County Sheriff William King put it.

People are getting used to it.

Spurling put out a step by step process.

That's awesome for us and very clear about what to do and when to do it.

It's becoming easier for us to implement the law and quote.

I stand by our current law, which was passed with a near unanimous support of the legislature.

It's working.

It's saving lives every day.

Another problem that continues to threaten our health and public safety is substance use disorder.

With your support, my administration, with the leadership of Gordon Smith, has partnered with people across the state of Maine to increase prevention, treatment and recovery.

We have widely distributed the the overdose prevention reversal drug naloxone.

We have strengthened prevention in our communities and our schools.

We've increased the number of treatment beds all across Maine.

And at the same time, law enforcement is doing its job.

They're taking they've taken nearly 200 pounds of illegal drugs off the streets last year alone, nearly 40 pounds of methamphetamines and 35 pounds of fentanyl pounds.

Ladies and gentlemen.

The problem remains.

But Maine saw a 16% decline in fatal overdoses in 2023.

One of the nation's one of the nation's largest decreases.

And last year, overdose deaths declined by another 19%.

116 lives saved.

We are saving lives, and we won't rest until this problem is solved.

The legislature last year approved my request for $4 million to expand medication assisted treatment in our county jails.

And those funds are giving residents a chance at new life as they reenter their community.

One young woman named Amanda, who got mad while she was at the Somerset County Jail, said, quote, I felt like I was living, not just an addict.

It made me feel like a regular person and quote.

So let's keep that program going.

With the continued funding for Matt in my budget.

The budget also includes a million and a half dollars to continue our mobile crisis response teams, specially trained behavioral health responders dispatched 24 hours a day, seven days a week, to de-escalate mental health and substance use crises, to assess needs, and to provide an appropriate level of care in the least restrictive setting.

Last year, we also authorized more crisis receiving centers, modeled on the successful Play Center in Portland, to offer prompt and appropriate care for any person experiencing a mental health crisis, instead of that person suffering alone or languishing in an emergency department or in a jail, which happens all too often.

We aren't able to fund all of the centers that were authorize or requested.

But my budget does include it does fund two new crisis receiving centers in Lewiston and the Penobscot County.

So when taken with the one in Portland, these will provide improved geographical balance and better access to crucial services for more people.

Now, it's worth noting here there are some things you're going to be asked about for which we're not proposing major increases.

The budget of the Maine Commission on Public Defense Services, for instance, has quadrupled already from $11 million to $44 million in recent years.

And next fiscal year, it will be more than $50 million.

And that.

And yet, though we have poured more tax dollars, more and more tax dollars into this agency, more and more people than ever are going without legal counsel when facing criminal charges or child protection proceedings.

The number of criminal defendants who lack representation reportedly skyrocketed by 658% in one year alone, between 2022 and 2023.

That doesn't make sense when there are about 4000 lawyers practicing in Maine that only 130, according to the report.

A roster to take new cases.

Many individuals are facing domestic violence charges, and the criminal defense bar is asking that these unrepresented and potentially violent people just go free.

Well, I agree with the Chief Justice and others who said that this is a crisis.

And because it's a crisis, the Public Defense Commission must do a lot more to find lawyers immediately.

For people charged with crime.

That means getting rid of, arbitrary caseload limits, restrictions, rules, rostering requirements, none of which is constitutionally required.

It means accepting help from the judiciary and finding capable lawyers to take cases, rather than resisting that help.

And it means allowing the newly created public defender offices, which have shown some promise here in Kennebec County, to handle the volume and the type of cases that need to be handled.

The current system has become a disastrous example of the perfect becoming the enemy of the good.

You know, because just a few years ago, we had all the lawyers we needed, but not enough accountability.

Now we have a system that's so focused on rules that it has driven away the lawyers.

The commission wants to they want tens of millions of dollars more in the budget.

But first, the commission must change.

Now, my administration spent months carefully developing this budget, a budget to protect the programs that you have embraced and to protect the long term fiscal health of the state.

Ultimately, we took a balanced approach, one that made some investments, that proposed some savings and that made some targeted revenue increases to reduce spending.

We are proposing changes to programs primarily within the Department of Health and Human Services.

Listen, those decisions have not been easy to make.

Believe me when I say that despite having invested more than $56 million just in child care, I do not like to having to reduce the stipends that were doubled just last year, despite having invested more than half $1 billion into improving mainecare rates.

I do not like having to suspend upcoming cost of living increases for health care providers, despite expanding pre-K options all across the state.

I do not like having to propose scaling back the increases in state funding for Head Start, despite having stood up shelters and provided other subsidies, tax credits and loan programs for housing.

I don't relish the idea of scaling back the general assistance payments that go to housing, despite having an increase the pension deduction for retirees three fold in three years.

I don't like having to modify it for anyone, even if only for higher income retirees.

But we did not set out to achieve savings in a careless way.

Instead, we've tried to be purposeful wherever possible.

I've proposed amending programs that have not yet been implemented.

So to make these changes less disruptive, or if proposed, scaling back programs that have become more expansive in recent years, or scaling back state dollars with federal dollars are available, all these are worthwhile investments.

I wish we could continue at higher levels, but we simply cannot sustain all of them.

Now, just as I don't like proposing cuts to programs, I also don't like proposing revenue increases, even targeted ones.

But if I had to consider a revenue increase, I decided that I wanted it to be specific and purposeful rather than broad based.

And I wanted to provide some social benefit in return.

That's what the cigarettetetete tax achieves.

You know, Maine has the highest adult smoking rate and the second highest youth smoking rate in New England.

We also have the cheapest cigarettetetetes of nearly every state in New England, and we haven't raised the cigarettetetete excise tax in two decades.

Unlike every other New England state, when cigarettetetetes are a leading cause of cancer, heart disease and stroke, and when more than one third of Maine cancer deaths each year is caused by smoking.

Our current policy just doesn't make sense.

Recognizing that a higher cost of cigarettetetetes can dissuade some people from smoking, especially young people.

My budget proposes a $1 increase to the cigarettetetete excise tax, a $1 increase for a total of $3, which puts us in the middle of our New England neighbors, which is still relatively low.

Now, I've heard some of my Republican friends criticize this proposal.

Republicans oppose all tax increases.

I heard some folks huff and puff, no pun intended.

Remember how earlier I said that Republican led Nebraska is facing their own budget problems?

Well, their Republican governor, like your Democratic governor, has proposed an increase in their cigarettetetete tax, too.

So not all Republicans oppose an increase in cigarettet and look, I understand your concern about the impact on low income people and that really you would like to make it as cheap as possible for people to smoke.

If that's the case, I would simply ask in return that you also not try to cut the very health care services that those same folks are going to need due to smoking?

Because that's what you do when you look at cutting Medicaid.

You should also know smoking related medical care costs.

The Maine Care program more than $281 million a year.

And the smoking also reduces productivity in the workforce, absenteeism and inability to work, which causes an estimated $1.5 billion loss to our state's economy every year.

That's something that's taxpayer money that could be saved and productivity that would cert Well, you know, and another subject.

2016 Maine voters legalized adult use cannabis by referendum.

Despite that, the program was not implemented until I took office.

And since retail sales began in 2020, Maine's cannabis market has changed a lot.

It's time to change our cannabis taxes, too.

That's why I'm proposing to lower the excise tax and increase the sales tax adjustments that will put Maine in the middle of the pack among states for cannabis taxes.

And while we're talking about cannabis, I want to say the time has come to better regulate the medical market with testing and tracking requirements so that those consumers, just like the recreational users, can be confident that those products are safe.

If you're ingesting cannabis for medical reasons, you ought to want to know that you're not consuming pesticides or other contaminants.

They're going to make your health worse.

We cannot continue to encourage the wild, wild west of medical cannabis, which is contributing also to the illicit market that has emerged and that needs to be fought across rural Maine.

My budget also proposes an assessment on non municipal ambulance and on pharmacy prescriptions.

Now I know your apprehensive when you hear the words ambulance, pharmacy and assessment in the same sentence.

But let me explain.

First, it's important to note that these are not charges that ought to be assessed or passed along to consumers.

Here's why.

Creating this new stream of revenue will allow us to draw down additional federal funds along with it.

We take that new federal funding, turn around, and invest much of it back into higher reimbursement rates for both those both those ambulances and pharmacies.

So they're basically made whole for that cost to begin with.

These targeted increases, I think all told, are reasonable.

They raise revenues while leaving the wallets of most Maine families untouched.

Look, I have to I have to say it's not been fun or easy to put this budget together.

Something you're beginning to understand.

I hope.

And again, over all of this is the unpredictability of the federal government, whose actions may directly affect our state appropriations and expenditures and the welfare of Maine people.

When I introduced my budget two weeks ago, I got to hear the collective groans of both Democrats and Republicans echoing, echoing in the chambers upstairs.

Oh yes, this is the same pain and frustration my commissioners and I have felt over the past several months as we put this budget together.

I know there's a strong desire among some of you to just, quote, tax the rich or, quote, end corporate welfare.

I hear you, but I have opposed changing our tax rates.

Much to the dismay of some of my Democratic friends, because stability and predictability for our people and for entrepreneurs and investors looking at Maine cannot be overstated.

Changing our income or sales taxes in order to raise revenue would discourage investments.

We very much need to keep our economy on track.

Investors are looking for a stable fiscal climate, and they, in turn, will bring high paying jobs, raising the standard of living and growing our economy in the long run.

That's the best way to expand our economy.

Support.

I support all of our people raising revenues consistently.

In that same vein, when you say corporate welfare.

What I hear you say is you want to do away with incentives that attract technology, manufacturing or life sciences, for instance, the wave of the future and the producers of future jobs.

Well, that too would be shortsighted to raise broad based taxes and to cut economic development.

Tools are not winning strategies.

Look, to my Democratic friends.

I know you don't want to see programs cut.

I know many of you would prefer to see us raise more money through tax increases to avoid any reductions whatsoever.

But you also know your Republican colleagues on the other side of the aisle don't want to do that.

Do you?

Okay.

To my Republican friends, some of you say you don't want to raise any revenues, even in a targeted way.

I know you'd prefer to add to cut more programs and to bring the gap, bridge the gap and avoid any and all tax increases.

But you also know your Democratic colleagues on the other side of the aisle generally don't want to do that.

Do you?

Thank you.

So where do we go from here?

I've put forward a budget that does not rely entirely on either revenue increases or cuts to programs.

Instead, it does both to bridge the gap and continue to invest in things we all support education, revenue sharing, public safety, higher ed, school meals.

Now, I've heard I've already heard some of you criticizing the budget before it was even printed.

No tax increases.

Some said no program cuts.

Others said it's easy to stand in front of a TV camera and say no.

It's easy to fire off a social media post and feel the the good as the likes roll in.

But I encourage you to reserve judgment and not create barriers to compromise.

Look, I mean, even Old Orchard Beach isn't big enough for all the lines in the sand.

Some of you have already drawn.

But it's so much harder to do the work of sitting around the table or the horseshoe, putting forward your own ideas and your constituents ideas.

Hearing what folks on all sides have to say, and then coming to consensus to enact balanced public policy.

Whether you're a Democrat or Republican or independent, that's how I. I hope you approach these conversations in good faith, with good ideas, with civility, with an open mind, and ultimately with a commitment and courage to make hard choices.

Tonight, I've shared with you a clear account of where the budget stands so that our discussions may commence with a common understanding of the challenges we face.

While it's true we have some tough decisions to make in the coming weeks, we also shouldn't lose sight of the strengths of our state and the strengths of our people.

I mean, what other what other place is home to people who can make a living off the unpredictable and uncontrollable elements of life?

As we do?

The fishermen who greet the ebb and flow of the tides.

Farmers who meet the rise and fall of the seasons.

Loggers and mill workers who remake the bounty of our forests.

What other place is home to scenic downtowns?

Award winning food and drink and vibrant small businesses.

Thought provoking art, literature and music that move the soul.

Pristine beaches, granite coves and breathtaking fields and mountains always within reach.

What other places produce stars like Cooper Flagg and his talented brothers from Newport, Maine?

I'm sure Ken, for that reason.

Who doesn't love Cooper?

Yeah, so do.

These these young guys, Cooper and his brothers.

Like, they make all of life's achievements seem, like.

Seem like a slam dunk.

I love them.

Or singers like Julia Gagnon who capture the charm and spirit of our state with her beautiful voice.

Clean air, clean water.

Good schools?

Yes.

Safe streets.

Healthy forests and farms.

Clear lakes and fish filled rivers.

Sturdy waterfronts, a strong economy with rewarding jobs, and a state that people want to visit in every season.

We know these aren't little things, my friends.

We are lucky we have them all.

Let's use this session to protect those things that make us special, and keep our state on a stable fiscal course.

When we hear anger and acrimony, we should stop and remember the words of our dear friend Dave Mallett, who told us that things, especially things in Maine, are better than that.

You know, it's this time of year that the early morning sun confronts the face of the Capitol, breaking through the east facing facade, crowning it with light.

It makes me feel hopeful when I see it, hopeful about the progress of the day and the course of the year.

I see faces and I hear voices across every county, town and city, every corner of the state, all looking to us to manage the finances of the state, to work with civil purpose, to solve problems, to create hope and prosperity, to keep people safe and to preserve that which makes our state so special.

We've demonstrated in the past that Democrats, Republicans and independents can put their heads together and we can get good results.

I'm ready to work with you in the coming months on a budget that is balanced, that is fiscally responsible, that strengthens our economy, and that lifts up our greatest asset of all the people of Maine.

Thank you and God bless the state of Maine.

Governor Janet Mills has wrapped up her state of the budget speech before a special joint session of the legislature.

I'm Jennifer Rooks, live at the state house with Maine Public's chief political correspondent, Steve Missler.

And we will get Steve's thoughts in just a few moments.

But first, we were going to turn to reaction from two Republican leaders whose comments were prerecorded.

First, we'll hear from House Minority Leader Billy Bob Faulkingham of Winter Harbor, and then Senate Minority Leader Trey Stewart of Presque Isle.

Good evening.

I'm Senator Trey Stewart from Aroostook County, and I have the honor of serving as the Republican leader in the Maine Senate.

Let me be crystal clear.

This budget is the worst in decades.

The governor has lied to us all in her promises to not raise taxes on Maine people.

She's proposing a dozen new taxes, including a tax on retirees and a 70 cent tax on every prescription filled in Maine.

Let me be clear about one more thing.

This budget has zero Republican votes.

We know that Maine is already one of the highest tax states in the country, and Mainers are already struggling to scrape by.

This budget throws gas on that fire.

Unfortunately, it seems my Democrat colleagues are hell bent on purporting to be firefighters when they're really the arsonists here.

We know you're smart enough to figure that out, though.

These proposed tax increases are an insult to the people of Maine, people who have to learn to live within their means while their government refuses to do the same.

People who continue to give and give only to see the fruits of their labor taken away.

It doesn't have to be this way.

And Republicans are here not only to raise the alarm, as we have for years, but to offer pathways to unleashing the potential of Mainers to improve their own station.

First, let's talk about energy.

We believe in a system that prioritizes Maine's people and not out of state solar developers and Wall Street hedge funds will fight this session to end the subsidies that you're paying for each month.

In your light bill, that fun, unsightly, and inefficient solar fields.

You should tell our Democrat counterparts to follow our lead on this.

If you're as mad about this scheme as we are, next, let's talk about taxes.

We don't think your property taxes should go up, because some out of state are overpaid for your neighbor's house to become their third vacation home.

Maine property taxes should be about providing local services that are necessary for our communities to function.

We'll be introducing a new model this year to fund these services differently and limit the tax burden on our most vulnerable seniors.

We will work with anyone, regardless of party, to provide stability and predictability in our property taxes.

Along those lines, the biggest item in local budgets is typically the public school system.

While Democrats have thrown more money at public schools, scores have plummeted to some of the worst in the nation.

We should be empowering teachers to teach and kids to learn by getting back to the basics and common sense in the classroom.

We'll see our performance improve.

Finally, much of our budget woes are due to Maine being a welfare state.

Thousands of people came to Maine to access our far too generous welfare system, costing us millions of dollars in cost overruns.

We should have a welfare system that acts as a safety net, not a hammock for the lazy to hang out in without limit.

Getting people back to work and injecting accountability into the system is one of our primary focuses this session.

I encourage you to pressure our Democrat colleagues to join us.

While the budget gap was created by Democrats.

We're happy to help them fix it.

We can and must do better, and are relying on you contacting your legislators to ensure that they put partizanship aside and do the right thing right now.

I've lived in Maine all 30 years of my life and have come to believe some basic things about our state.

Mainers are smart, resilient, and industrious.

We want what is best for our state, and we'll work to make it happen.

If we continue to fight on, we will win and the next 30 years will be the best yet.

I truly believe that our best days are ahead of us, and by charting a new course, we can turn our dreams into a reality that will benefit every Mainer.

From Kittery to Fort Kent and every small town in between.

Good evening.

I'm Representative Billy Bob Faulkingham.

I'm the leader of the House Republicans and the Maine Legislature.

Democrats created this budget mess.

They turned record tax revenues into a deficit instead of lowering taxes.

Democrats continued to recklessly spend your hard earned tax dollars.

They abandoned the traditional bipartisan budget process by passing budgets without Republican support.

Their irresponsible spending led to this shortfall.

Governor Mills says she doesn't believe that the government can or should be all things to all people, all of the time.

But what this budget says is that she will tax all things and all people all of the time.

Instead of addressing what caused the deficit by reducing spending, the governor is proposing to spend $1.1 billion more by taxing Maine's poorest citizens, low income workers, senior citizens and people living on fixed income.

This is on top of the $448 million payroll tax that just took effect January 1st.

How much pain can they inflict on you, the Maine people, before you say enough is enough.

Maine has the third highest tax burden in the country.

Our property taxes are the highest in the nation.

Rather than tax everything and everyone.

Democrats should do what everyday working families do when they have less money.

Spend less.

The governor boasts about a 55% education funding and continued revenue sharing in our budget.

But these are things we can easily agree on.

This budget seems like it was written by a millionaire out of touch with reality.

Taxes on paint cans, digital streaming, prescription drugs, cannabis, tobacco products, retiree pensions and even an ambulance tax our taxes on the poor and middle class.

This tax and spend mentality is threatening our children's future.

Republicans are united in opposing new taxes on Maine's poor, our middle class, our workers, our families, our businesses, and our seniors.

Good night.

God bless.

That was House Minority Leader Billy Bob Ingham of Winter Harbor, and before that, Senate Minority Leader Trey Stewart of Presque Isle, with their response to Governor Janet Mills state of the budget address.

Steve, what's your takeaway from both the speech and the Republican response?

Well, I thought the speech was interesting because it was basically a state of the state speech.

The governor touched on a lot of topics that she's wanted to get in front of people.

And that there were not necessarily budget related.

But then a lot of it, a lot of the speech was also just sort of defending this budget proposal.

And she's defending it not just from Republicans, which you just heard from, but also Democrats.

And, you know, she had basically at the end was her closing message was both sides need to give up on this wish list.

That's ideological and come together and, you know, basically support my budget proposal.

I'll be surprised if that happens.

We'll see.

We'll see how it goes.

But.

Well, chief political correspondent Steve Missler.

Steve, I look forward to having you on Maine, calling again in just a few hours with Spectrum News Susan, cover to talk about this speech.

That concludes our live coverage of Governor Janet Mills state of the budget address from the Statehouse in Augusta.

You can watch this program again on demand at Maine public.org for all of us here at Maine Public, I'm Jennifer Rooks.

Thank you for joining us.