What Does the Stimulus Mean for Maine?

Federal Funding
$470 million in federal Medicaid dollars (FMAP) over the span of 27 months.

State Stabilization Fund- $196 million for Maine. Provides financial support for expenses such as elementary, secondary, and post-secondary education. Other needs include public safety as well as the modernization and renovation of K-12 post-secondary school.

$42.8 million for the Weatherization Assistance Program as well as $27.5 million for the State Energy Efficiency Program which is administered through Efficiency Maine.

Maine receives $116,295,00 in additional food stamp benefits (The Supplemental Nutrition Assistance Program). 13.6% increase in benefits will be seen by those currently utilizing food stamps. Families will also be able to use food stamps for a longer period of time.

School districts will receive $37.5 million in Title I-A Grants.

$11 million in Title I School improvement grants.

Special education funding in Maine will see $53 million through the Individuals with Disabilities Education Act (IDEA). Schools throughout the state will benefit.

Nation wide- $15.64 billion for Pell Grants. The maximum Pell Grant will be increased by $500 for a maximum of $5,300 in 2009 and by 2010 it will increase to $5,550.

Job Creation

$133 million for highway investments.

$50 million for water and sewer infrastructure.

“Making Work Pay” tax credit to $400 per worker and $800 per couple in a refundable tax credit to offset the 6.2 percent payroll tax on the first $6,450 of earned income.

$16.7 billion for retirees, disabled veterans and SSI Recipients. Those who do not qualify for the tax credit will receive $250 cash payments.

Restoration of cuts of Medicare payments to hospice. Results in $400,00 for Maine’s hospices.

17,000 families in Maine will be eligible for a new tax credit to make college affordable.

Crucial relief to Maine’s softwood lumber industry. Accomplished by waiving the requirement that they return funds paid to them after Canada violated U.S. trade law.

Temporary suspension of taxes on Unemployment Insurance Benefits. Will benefit more than 33,000 Mainers. Bill includes a $100 a month unemployment benefit increase.

Money will be overseen by the Governor’s office.

Ryan Low, Baldacci's finance commissioner, said the money coming into the state will be kept in separate accounts for each department. For example, if the state gets $5 million from the stimulus bill for bridge construction, the money would be kept in a Department of Transportation "bridge stimulus" account.

"What we wanted to make sure we could do is segregate and follow that federal stimulus dollar as it comes into state government and it goes out of state government," Low said.

Agencies will have to file a form called a ‘financial order’ to request funds, and the governor, Low and a state budget officer will have to sign off on each one. Then, the orders will go to the legislature, where the Appropriation Committee will have a chance to make statements about each expenditure, but will not have the power to block the spending.

"My hope and understanding is the governor will work closely with the Legislature on both budgeting the money and spending the money," said House Speaker Hannah Pingree (D-North Haven).

David Farmer, Baldacci’s chief of staff, said the Governor's Office plans to work with lawmakers.

Republican and Democratic legislative leaders have been meeting for several weeks with each other and with the Governor's Office on the process for handling the stimulus money.

The Legislature set up a trust fund for any Medicaid money to come with the stimulus package, giving it some control over how funds will be spent. It's looking to do something similar for any energy-related projects, which will likely be new initiatives and need more legislative oversight, Pingree said.

Senate Republican Leader Kevin Raye (R-Perry) said lawmakers made it clear to the governor that the funds should be spent on infrastructure projects of lasting value. Raye said lawmakers don't want the money spent on programs that would grow state government or prop up existing programs.

Some money might go directly to communities, although how much was unknown by presstime. Local school committees or city councils would have oversight of those funds.