When the biggest accomplishment of a legislative session is passing a budget and avoiding a state shutdown, it’s clear that state policymaking has reached a nadir. But that describes the course of the 127th Maine Legislature’s first session — which essentially devolved into a battle to keep government functioning.
It began in January with major proposals from the governor, especially a budget that proposed large income tax cuts and an overhaul of the state’s tax system. Gov. Paul LePage’s proposals were doomed from the start, however, for practical and political reasons.
Democrats couldn’t support it because the tax cuts — which LePage didn’t offset with spending reductions — would have left a nearly $150 million hole in the next two-year budget. Republican lawmakers weren’t keen on LePage’s plan, either, because it proposed to raise the state sales tax and extend it to a range of services and recreational activities. A Legislature controlled by Democrats passed similar changes in 2009, but voters quickly rescinded them through a people’s veto effort. Many current Republican lawmakers took office after running against those tax changes in 2010, the year they took control of the State House.
Although it wasn’t viable, the budget became the focal point of debate — and months of inaction. Legislative leaders ultimately negotiated a compromise plan in secret as a shutdown deadline neared. This sad episode of budget-building was in no small part a result of LePage’s refusal to accept no less than his plan as he proposed it, along with a major step toward the eventual elimination of the state income tax.
Despite 64 budget line-item vetoes from LePage, which lawmakers swiftly overrode, and LePage’s veto of the entire budget (which lawmakers also quickly overrode), Maine had a spending plan in place by June 30 with hours to spare before the July 1 start of the new fiscal year. The budget includes income and estate tax reductions, but it keeps the sales tax at 5.5 percent, raises the lodging tax and limits tax deductions. Lawmakers maintained municipal revenue sharing (which LePage proposed to eliminate), expanded the Homestead Exemption and directed more money to public schools.
Welfare “reform” was another priority for LePage and Republican lawmakers, and they managed some changes to the state’s public assistance programs, but nothing like the changes they proposed. They changed the General Assistance reimbursement formula to the detriment of service center communities such as Bangor and Portland, and they smoothed the “welfare cliff” — the situation in which recipients risk losing benefits after a slight increase in pay.
Republicans blame Democrats for stymying larger changes, such as prohibiting the use of electronic benefit transfer cards outside of Maine and implementing work search requirements to be eligible for benefits. But Democrats counter that stopping changes that would undermine public assistance is actually a positive accomplishment. As a result, by resisting such proposed changes, Democrats became the standard bearers for maintaining the status quo, and a budget that kept the status quo largely intact became a victory.
There were important instances in which the best legislators could do was to ensure that government programs could fulfill their intent. For example, lawmakers voted to strip LePage of his authority to sign off on bonds (which he has misused to withhold voter-approved bonds for the Land for Maine’s Future program). The governor vetoed the bill, so lawmakers must hold together and override the veto later this month. The House and Senate also voted to fund Efficiency Maine programs as the last Legislature intended.
And for the second time, lawmakers rejected a weakening of environmental rules aimed at making it easier to mine for metals in Aroostook County and elsewhere in the state.
What was missing from the 127th Legislature were policy changes addressing the most vexing challenges facing Maine — a shrinking workforce and insufficient investment in economic sectors poised for growth. Tackling such issues is difficult and likely can’t be done through one bill, much less a bill that fits neatly into one side’s partisan narrative. But it is disheartening that lawmakers spent so little time taking on the challenge. At the same time, it’s hard to expect significant policy changes with a Republican Senate, Democratic House and a governor who encourages dysfunction.
So, maybe there’s a new state motto: Maine, the place where things don’t change much, despite all the bluster.
