Statement: No Tax Increases or Raiding Rainy Day Fund to Fix Maine’s Budget

PRESS RELEASE

FOR IMMEDIATE RELEASE
January 7, 2025
Contact: Jacob Posik
Director of Legislative Affairs
Office: 207.321.2550

Statement: No Tax Increases or Raiding the Rainy Day Fund to Fix Maine’s General & Highway Fund Shortfalls

PORTLAND, Maine – Maine Policy Institute CEO Matthew Gagnon issued the following statement today outlining Maine Policy’s budget priorities for the 132nd Legislature on this first day of session:
 
“Maine lawmakers have a lot of work ahead of them this year, but nothing is more important than the state’s next two-year budget. Given the projected shortfalls in the state’s General and Highway Funds, it is imperative that lawmakers act in the best interest of Maine taxpayers to close these gaps. Maine Policy’s stance on the upcoming budget could not be more clear: Lawmakers must address these issues without adopting new tax increases or raiding the state’s rainy day fund. 
 
“The best way to proceed is to cut spending within the General Fund after multiple majority budgets which contained reckless spending increases, and to reallocate all automobile-related sales taxes to the Highway Fund. These changes would permanently fix the state’s ongoing transportation funding woes while keeping the budget balanced as required by the state Constitution. 
 
“It remains unclear what avenue the Governor and the majority party intend to pursue to address these problems. Regardless, Maine Policy will work diligently throughout the session to ensure Maine taxpayers and the state’s piggy bank are protected from the Legislature’s final solution.” 

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Maine Policy Institute is a nonprofit, nonpartisan organization that works to expand individual liberty and economic freedom in Maine. Learn more about our work at www.mainepolicy.org.