Maine’s Operating Budget is headed for trouble. It was reported out this week that the already committed 2 year budget approaching $9B is going to be severely impacted by the economic downturn due to COVID 19 actions by the Governor. Two former Governors were quoted in the Press Herald: “The revenue shortfall soon to unfold in Maine will be unlike any the state has ever seen, including the Great Recession of 2008 to 2010 and the decline of the economy following the Sept. 11, 2001, terrorist attacks.” And that was before COVID 19!
GOP legislators and staffs warned Gov. Mills, Speaker Gideon , Senator Jackson and anyone who would listen that Maine would not be able to sustain their blockbuster spending spree. The shortfalls that are coming may be larger than predicted, but shortfalls were predictable.
Instead of setting aside more money in the State’s rainy day fund, Speaker Gideon and the democrats pushed for taxpayer funded abortions, twice voted to provide welfare for non-citizens and a whole lot of other spending increases.
Moody’s projects Maine’s budget shortfall and fiscal impact could be as high as $1.1 billion, that is more than 20% of the state budget. A study from Oxford Economics says Maine has the most vulnerable economy in the nation right now.
The spending spree approved in 2019 is about to be coupled with some hefty fiscal challenges that may end up in the next legislature to solve. It’s high time the Maine House be led with fiscal conservatives to put Maine back on track. Your vote for conservative Republicans on November 3 is important.