Final vote awaits minimum wage boost, veto uncertain
With majorities in both chambers, Democrats have eked out a number of legislative victories along largely party-line votes. Many of those bills now face Gov. Paul LePage's veto pen.
Although many recent bills have been decided along party lines, a proposal for a new state agency that could issue bonds and collaborate with other states to build out Maine's natural gas infrastructure has early bipartisan support. That bill had its first public hearing April 11.
Other notable activity:
Minimum wage
In close House and Senate votes, legislators voted to boost the state's minimum wage by 50 cents annually until 2016, when it would reach $9 per hour. It is $7.50 now, 25 cents higher than the federal minimum. The House passed the bill 86-58 and the Senate 19-16, in largely party-line votes. By press time, LePage had not acted on the bill, though Republican lawmakers broadly opposed the measure. If vetoed, the bill would return to the Legislature where it would need two-thirds majority support in both chambers to become law.
Budgeting
The Legislature's Taxation Committee will work through this week to craft its specific recommendations on LePage's $6.3 billion biennial budget proposal. The Maine Chamber of Commerce has come out strongly against the budget's proposed one-year suspension of the Business Equipment Tax Reimbursement program. As proposed by the governor, the BETR program would divert to another tax break program — the Business Equipment Tax Exemption program, which covers 60% of BETR-eligible costs, and is paid by municipal governments rather than the state. The Maine State Chamber estimates the change would cost Maine businesses an additional $38 million in related taxes over one year.
Robin Hood, of sorts
The Legislature split largely along party lines to reject a proposed capital gains tax break and, separately, to support expanding the state's earned income tax credit, which benefits low-income filers.
The rejected capital gains tax cut plan would have reduced that tax by half. The EITC bill would boost the state's tax credit from 5% to 10% of the federal standard, if it clears the governor's desk. There will be a wait, however, as the bill heads first to the appropriations committee for a financial assessment. The EITC bill would cost an estimated $68 million in lost state revenue through 2017.
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