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Governor's State of the State Address
Governor LePage delivered his State of the State Address on January 24, 2012 before a Joint Convention of the Legislature. The Governor outlined some of his priorities for the year, including reducing state spending for health care and welfare, lowering energy costs, reducing taxes and reducing regulatory burdens on businesses.
DHHS Supplemental Budget
The Appropriations Committee unanimously voted to support an alternative budget proposal to address shortfalls within the Department of Health and Human Services. The budget survived initial votes in the House and Senate but failed to win final enactment on the first round in the Senate. After breaking for the weekend and continuing negotiations during the week, however, a sufficient number of Senate Democrats switched their votes and supported final enactment on Feb. 23.
As part of a bipartisan compromise, the budget proposal caps MaineCare funding for childless adults, or noncategoricals, reduces the eligibility threshold for parents of children on MaineCare, reduces the amount of noncategoricals from the MaineCare rolls. It also includes cuts to other state agencies, including FAME. FAME's student financial assistance programs are slated to be cut $297,000 as part of an overall "streamlining initiative" to fill a left over $25 million hole from prior budget. These cuts will reduce participation in the Educators for Maine Program and the Health Professions Loan Program. The budget also proposes one percent across-the-board cuts to most state agencies, including FAME, and proposes to take money from FAME's loan insurance reserves, as well.
Gov. LePage signed the budget into law. The emergency measure takes effect immediately. The amended budget makes $120 million in cuts to DHHS for the 2012 fiscal year that ends on June 30. The Appropriations Committee will soon begin work on an additional $84 million in cuts to DHHS that are needed for the fiscal year that begins July 1.
Insufficient signatures for citizen energy initiative
Maine Citizens for Clean Energy recently failed to deliver sufficient signatures to the Secretary of State's Office in order to put a ballot measure before voters in November. They said they will try for 2013 instead. The citizen initiative would have required twenty percent of Maine's electricity to come from renewable sources such as solar, wind, and hydro. It also would require utilities to invest in energy efficiency. Gov. LePage has criticized the measure, saying it would increase costs and drive business away. Groups behind the effort say it would create jobs, protect the environment, and make Maine less dependent on fossil fuels.
Special Election
Democrat Chris Johnson won a Feb. 14 special election to fill a vacant seat in the Maine Senate. He defeated Republican Rep. Dana Dow. The District 20 seat, which includes all of Lincoln County, as well as Windsor in Kennebec County and Friendship and Washington in Knox County, became vacant when Republican David Trahan stepped down to become executive director of the Sportsman's Alliance of Maine.
Rep. Burns resigns
Alfred Rep. David Burns has resigned. Burns last year was the subject of a random audit by the Maine Ethics Commission, which found that the lawmaker had routed public financing money to his private bank account, used the funds for personal expenses and provided investigators with false documents. A grand jury in York County has indicted Burns on charges of felony theft in connection with the misuse of public campaign funds during his 2010 campaign.
November Elections
Maine Democrats and Republicans are preparing for a big election year. There are ten open seats in the Senate. Two years ago, Republicans took control of both houses and the governor's office for the first time since 1966. Republicans control the House 77-72-1, with one vacancy after last week's resignation of David Burns. Republicans also control the Senate by a margin of 19-15-1. The November ballot will feature other candidates and issues, including the presidential race, U.S. Sen. Olympia Snowe's bid for re-election, both congressional elections (Rep. Mike Michaud and Rep. Chellie Pingree), a referendum on gay marriage, as well as legislative races.
New Education Proposal
Gov. LePage and state Education Commissioner Steve Bowen recently announced new education proposals for the state. The sweeping legislation proposed would allow public funding of religious schools, change how teachers and principals are evaluated, allow students greater choice in the schools they attend, and expand career and technical education. The four proposed bills would affect every student, teacher and administrator in Maine. Gov. LePage said the proposed legislation was designed to provide the broadest scope of opportunities for students.
Bills of interest:
- LD 1662 (sponsored by Sen. Raye), An Act to Provide for an Advisory Referendum on the Approval of Tax-Exempt Student Loan Revenue Bonds: The Maine Educational Loan Authority (MELA) issues private activity bonds to fund supplemental student loans for Maine students and families and services its debts with the revenue streams associated with student loan repayment. The bill directs the Secretary of State to hold an advisory referendum at a statewide election to determine whether the voters of the state favor the Governor's approval of MELA's issuance of no more than $50 million of tax-exempt student loan revenue bonds over the next three years, to be repaid by the loan recipients. Status: Public hearing held Wed., Feb. 22 before the Appropriations Committee.
- LD 1733 (sponsored by Sen. Rector), An Act to Provide for the 2012 and 2013 Allocations of the State Ceiling on Private Activity Bonds: Establishes the allocations of the state ceiling on issuance of tax-exempt private activity bonds for calendar years 2012 and 2013. Status: Public hearing and work session held before Labor, Commerce, Research and Economic Development Committee. Committee voted unanimous "ought to pass as amended."
- LD 1422 (sponsored by Sen. Langley), An Act to Prepare Maine People for the Future Economy: The bill as amended proposes to overhaul Maine's high school graduation requirements. The bill would first affect students graduating from high school in 2017 and would no longer allow students to earn credits merely for time spent in school. Instead, they would have to demonstrate proficiency in every skill and topic in the eight content areas and five guiding principles of the Maine Learning Results. Adopting the new approach -- usually called proficiency-based or standards-based education -- could allow schools to eliminate age-based grade levels and promote students based entirely on their mastery of the standards. The deadline of 2017 proposed would affect this year's seventh-graders, and high schools would need to have curriculum, new transcripts, technology and staff training in place by the time those students enter high school in 2013. To accommodate schools that can't meet the deadline, the Education Committee adopted a waiver provision. Districts could obtain waivers only until 2020. Education Commissioner Bowen said he will ask the Legislature to supply money for a state fund that assists regional professional development centers. The Department also is preparing a website for educators to share resources such as curriculum standards and syllabuses. Status: The bill was reported out of the Education and Cultural Affairs Committee recently with a unanimous 11-0 "ought to pass as amended" recommendation.
- LD 835 (sponsored by Rep. Knight), An Act to Strengthen Maine's Economy Through Improvements to the Educational Opportunity Tax Credit (Opportunity Maine): This Opportunity Maine bill was carried over from last session. It recently was amended by and reported out of the Taxation Committee. The majority report replaces the bill and makes the following changes to the educational opportunity tax credit:
- Beginning January 1, 2013, it allows an individual who transfers to an accredited Maine community college, college or university after completing up to 30 credit hours of course work at a non-Maine accredited community college, college or university to be eligible for a portion of the tax credit created to implement the Job Creation Through Educational Opportunity Program.
- It provides that an individual may claim the educational opportunity tax credit only with respect to loans that are part of that individual's financial aid package and that are entered into before July 1, 2023.
- It makes the credit refundable for a Job Creation Through Educational Opportunity Program participant entitled to the credit.
- It allows an employer to claim the credit if a qualified employee meets all eligibility criteria for a Job Creation Through Educational Opportunity Program participant except that the qualified employee's associate degree or bachelor's degree was awarded by an accredited non-Maine community college, college or university.
- It requires all Maine community colleges, colleges and universities to report to the Department of Education by February 1, 2021 on efforts to promote and enroll individuals in the Job Creation Through Educational Opportunity Program and to train admissions and financial aid staff about the program.
- It requires the Department of Education and the Department of Administrative and Financial Services, Bureau of Revenue Services to report by March 1, 2021 to the joint standing committee of the Legislature having jurisdiction over education and cultural affairs and the joint standing committee of the Legislature having jurisdiction over taxation matters.
- It requires the joint standing committee of the Legislature having jurisdiction over taxation matters to review the educational opportunity tax credit by June 1, 2021. The committee is required to consider information provided by the Department of Administrative and Financial Services, Bureau of Revenue Services and the Department of Education to determine whether the credit should be retained, modified or repealed.
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