State income tax issue looms over pandemic relief loan recipients
Unless the Legislature acts, Maine businesses and nonprofits could have a higher state tax burden than what federal tax rules require.
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As local banks prepare for an onslaught of new applications for federal pandemic relief loans, Maine businesses and nonprofits that received loans are still waiting for state lawmakers to pass a bill that would exempt the forgiven amount of the loans from state taxes.
The Legislature will consider measures to address the tax issue, but it is unclear when such a bill might pass. That lack of certainty could force loan recipients to delay filing their taxes and create additional trouble and expenses.
Mills’ next budget in balance without tax hikes, despite revenue losses
The budget that Gov. Janet Mills will submit to the Legislature on Friday would maintain critical government services at a time when they are needed most, says Finance Commissioner Kirsten Figueroa.
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A new two-year state budget proposal Gov. Janet Mills will deliver to the Legislature keeps state spending in check without raising taxes or cutting programs and services Maine citizens depend on most, a top official in Mills’ Cabinet said Thursday.
Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services, said state government finances were solidly in the black going into the COVID-19 pandemic last March. That positioned the state well for revenue losses triggered by restrictions on business ordered by Mills to slow the spread of the virus.
, President of the Maine Service Employees Association, SEIU Local 1989.
“AFSCME Council 93 commends Governor Janet Mills for crafting a budget plan that does not attempt to place the burden of the state’s fiscal challenges on the backs of dedicated and hard-working public employees. Given that our members working in state corrections and mental health have bravely continued working on the frontlines throughout the pandemic, we appreciate that the governor’s budget does not call for layoffs or furloughs of state employees. In addition, by maintaining current funding levels for municipalities, the governor has provided some measure of security for the hundreds of AFSCME members who continue to serve in vital, essential services in our cities and towns,”
It’s a transition often made easier by the realignment of our government and institutions.
A realignment will occur in 2021. The U.S. will have a new president and a new Congress. Maine will have a new Legislature and a new slate of 186 state lawmakers will play a leading role in creating a new two-year budget that will determine the size and direction of the state’s bureaucracy.
Other than special elections to fill vacant seats, there are no big candidate contests set for 2021. Nevertheless, the political ambitions for those eyeing 2022 and beyond could emerge.
Here’s how the new year will be heavily influenced by the old one.
Amid a pandemic and an economic downturn, lawmakers will return to Augusta in January with a list of priorities that span topics such as healthcare, climate change and the power of the executive branch.
And while Democrats and Republicans have different goals, they agree on two primary items – balancing the state’s budget, which has a $150 million deficit, and agreeing on a new two-year spending plan.
This story was originally published by The Maine Monitor.
The Maine Monitor, formerly known as Pine Tree Watch, is a local journalism product published by The Maine Center for Public Interest Reporting, a nonpartisan, nonprofit civic news organization based in Augusta.