Under the Dome: Inside the Maine State House 12.20.2013

Under the Dome: Inside the Maine State House provides a high-level overview of recent activity at the Maine State House.

December Thaw?

This week, Governor LePage announced that he is lifting his prohibition on Executive Branch employees appearing before legislative committees. The Governor spoke with the press on December 19^th and announced this change in policy after Democratic and Republican legislative leaders sent a letter to all legislators regarding civility and decorum during the next legislative session. The Governor’s decision is viewed by legislators on both sides of the aisle as a positive development that will further the Legislature’s work when it reconvenes on January 8^th.

Maine’s Legislative Branch is relatively small and does not have the capacity to independently collect and evaluate information regarding the operation of State government. Consequently, the Legislature relies heavily on the Executive Branch as the custodian of this information. For the past few months, the Governor has prohibited Executive Branch employees from attending most legislative committee meetings and has insisted all questions to the Executive Branch be submitted in writing. The Governor instituted this policy because he felt legislators were using committee meetings to “berate” members of his administration. 

Frustrations around this policy ran high in December as a number of legislative committees held interim meetings to prepare for the next legislative session. Legislators felt that these meetings were not as productive as they could have been because Executive Branch employees were not available to answer questions. Tensions were running so high this month that some Committee Chairs were openly exploring their ability to subpoena Executive Branch employees to compel them to appear before legislative committees. This legal showdown, however, appears to have been averted.

Appropriations Committee Starts Process of Assembling A Supplemental Budget

Last week, the Chairs of the Appropriations and Financial Affairs Committee requested detailed financial information from a number of State agencies in anticipation of the Committee assembling a supplemental budget during 2014.  Maine enacts two-year budgets but spending and revenue predictions are never completely accurate, resulting in the need for a supplemental budget to account for unintended budget gaps.  2014 will be no different and Maine will almost certainly face a budget shortfall that will need to be addressed to satisfy State constitutional requirements for a balanced budget. 

While the need for a supplemental budget is not unusual, Governor LePage’s reaction to the need for a supplemental budget has been unprecedented.  Instead of having the Executive Branch prepare the supplemental budget, the normal course of business, the Governor has told the Legislature that he will not be submitting a supplemental budget. He explained that the current biennial budget was enacted over his opposition (and veto) and that the anticipated imbalance is the result of the Legislature’s work in 2013. The Governor has advised the Legislature that it must develop its own plan to balance the budget.

In light of the Governor’s position, the Chairs of the Appropriations Committee began gathering information from the Executive Branch. At this point, it is unclear how the Governor’s decision to allow Executive Branch employees to attend legislative committee meetings might affect the development of a supplemental budget. What is clear, however, is that members of the Legislature are prepared to undertake the task of assembling a supplemental budget themselves.

State Revenues Exceed Projections by $28 Million

This week, it was reported that revenues for the first four months of the current state fiscal year are $28 million over projections. This summer and early fall, the State collected more in both income tax and sales tax than expected.  This is obviously good news for legislators who are working to keep the State’s budget in balance. This may also be good news regarding the economy in general, as increased revenues are a sign of a stronger economy. The Commissioner of the Department of Administrative and Financial Services, Sawin Millett, expressed cautious optimism when asked what these numbers mean for the economy, calling what we are seeing “stabilization” rather than proclaiming the economy has “turned around.”