Mills Approves Financial Orders to Address Payroll Shortfalls, Fund State Programs

Maine Gov. Janet Mills (D) approved 40 financial orders on April 24 to adjust state budgets for the fiscal year ending June 30, 2025, addressing payroll shortfalls and funding operational needs across multiple departments, according to a state document released by the Executive Department.

The orders, detailed in a 40-page document, authorize the State Controller to transfer funds, increase allotments, and establish new positions to ensure state agencies meet financial obligations.

The primary focus is correcting payroll shortfalls caused by unbudgeted collective bargaining costs and lower-than-expected staff turnover, which have strained budgets in departments such as Administrative and Financial Services, Public Safety, and Health and Human Services, according to the governor’s office.

Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services, signed several orders reallocating funds to cover payroll deficits. One order transfers $17,000 from the “All Other” line category to Personal Services in the Maine Solid Waste Management Fund to address unbudgeted labor costs. Another order allocates $3,500,000 to cover increased rent and electricity costs for state leases, with funds reimbursed by corresponding agencies.

Other departments face similar challenges.

The Department of Public Safety, led by Commissioner Michael Sauschuck, will see $225,000 and $68,500 transferred from the State Police account to other General Fund and Highway Fund accounts, respectively, to address payroll shortfalls due to unbudgeted pay increases, overtime, and unrealized attrition.

The Department of Health and Human Services, under Deputy Commissioner Benjamin Mann, transferred $677,743 from “All Other” to “Personal Services” in the CARES Federal Project Grants account to correct negative allotments and fund payroll, driven by task code alignments in the Maine State Time and Attendance Management System.

Beyond payroll, the orders fund critical programs.

The Department of Inland Fisheries and Wildlife, led by Commissioner Judith Camuso, allocated $250,000 for land acquisition on Little Wilson Pond for boat launch facilities and $106,000 for ATV enforcement payroll costs. The Department of Transportation, under Commissioner Bruce Van Note, increased allotment by $1,300,000 to expense revenues for highway and bridge maintenance. The Department of Agriculture, Conservation, and Forestry, led by Commissioner Amanda E. Beal, allocated $156,477 for spay/neuter services under the Companion Animal Sterilization Program.

The financial orders also fund the creation of new positions.

The Department of the Attorney General, led by Aaron M. Frey, creates one limited-period Assistant District Attorney position, funded by a $12,174 U.S. Department of Justice grant via Cumberland County, to manage sexual assault kit testing. The Department of Environmental Protection, under Commissioner Melanie Loyzim, established four Government Intern positions for $7,674 to assist with hydrogeology and waste management. The Department of Marine Resources and Health and Human Services also created limited-period positions for infrastructure planning and cancer registry data assurance, respectively.

The orders utilize unencumbered balance forwards, transfers from surplus accounts, and external funding like grants to avoid unbudgeted increases.

For example, $153,992 is allocated for excise tax reimbursements to Maine counties, and $218,000 supports the state share of a cybersecurity grant program. Failure to approve these orders, the document states, would prevent agencies from meeting payroll, fulfilling contractual obligations, or delivering services like veterans’ support and workforce development.

The orders span policy areas including governmental support, natural resources, justice, health, economic development, transportation, and business regulation. Each order is accompanied by a “Revision of the Work Program for Fiscal Year ending June 30, 2025,” which details specific account adjustments.