Maine will soon be transferring a total of $60 million out of the Budget Stabilization Fund (BSF) in response to the damaging storms the state faced in December and January.
This spending comes as part of the supplemental budget approved by lawmakers earlier this month and signed into law by Gov. Janet Mills (D) Monday.
The $60 million transfer out of the BSF consists of two parts. $50 million will be sent to the Infrastructure Adaptation Fund (IAF), while an additional $10 million will be directed to the newly-established Business Recovery and Resilience Fund (BRRF) program.
Both of these initiatives received bipartisan support in Augusta, but lawmakers were divided along partisan lines over what would be the most appropriate source for the necessary funding.
While Democrat lawmakers backed the plan to utilize funds from the BSF, Republican legislators advocated for the money to be drawn from the unappropriated General Fund surplus.
The $50 million being sent to the IAF is to be used for “significant infrastructure adaptation, repair and improvements that support public safety, protection of essential community assets, regional economic needs and long-term infrastructure resiliency.”
Created in 2021, the IAF was first introduced by Gov. Mills’ as part of an effort to “empower communities in the fight against climate change.”
Money placed in the BRRF will be used to provide “grant opportunities for businesses and organizations, including nonprofit organizations, affected by severe weather-related events.”
This fund will grant assistance to those who were impacted by the storms that took place on December 18 of 2023, as well as on January 10 and January 13 of 2024.
Colloquially known as the Rainy Day Fund, the BSF is statutorily required to be used primarily as a reserve account to offset state expenses in the event of a General Fund revenue shortfall.
The BSF may also be used to to provide assistance to the families of fallen first responders or cover specifically-defined expenses during certain emergency situations.
Mills first suggested making this storm-related transfer during her two-part State of the State Address on January 30.
“I propose taking from the Rainy Day Fund to respond to some pretty rainy days we’ve had and some rainy days ahead,” Mills said.
The proposal was originally brought to lawmakers in February as a standalone bill but was eventually incorporated into the supplemental budget by members of the Appropriations and Financial Affairs (AFA) Committee before they reported out their recommendations in April.
Although both the Democrat and Republican versions of the supplemental budget legislation contained this $60 million combined allocation, they differed in terms of where they sought to source the funding for it.
While the Democrat majority report — which was ultimately approved by both chambers — sought to draw upon the BSF, the Republican minority report would have taken the $60 million out of the unappropriated General Fund surplus.
Mills announced in a press release this past Thursday that she has directed her administration to “take the steps necessary to distribute the $60 million in storm relief as soon as the money becomes statutorily available.”
The Maine Department of Transportation (MDOT) and the Maine Department of Marine Resources (DMR) expect to have funding applications available by May 9. The Maine Department of Economic and Community Development (DECD) has indicated that their applications will be available by May 16.
Funding will be issued ninety days after the Legislature’s adjournment.
“While I am disappointed this crucial bill got caught up in last minute budget politics, my Administration will take every necessary step to get the money out the door as soon as it becomes available,” Mills said in her April 18 press release. “We hope these steps can provide at least some sense of certainty to help communities, especially those along the coast, and our small businesses rebuild stronger and better.”
Click Here to Read Gov. Mills Full Press Release
The Maine Wire reached out to the Department of Administrative and Financial Services for comment but did not immediately receive a response.
<span class="dsq-postid" data-dsqidentifier="27541 https://www.themainewire.com/?p=27541">3 Comments
You heard it here first people. Watch how fast this money for the “nonprofit organizations” will go to illegal immigration. It’ll make your head spin.
How about they spend that 60 million on repaving the shitty secondary roads I have to drive on every day and that are beating the shit out of my car. That would be a great service to the people of Maine. Instead it will be pissed away on some phoney climate change hoax bs. Or they could cut are taxes but that would be too radical.
running out of money already,
just wait until next year