A taxpayer-financed slush fund that Democrat Gov. Janet Mills is proposing violates the government’s definition of poverty.
If that isn’t enough of a “red flag,” the “affordability” payments appear to violate the “Rainy Day Fund” spending guidelines.
Mills proposed the payouts Tuesday during her eighth and final annual state-of-the-state address.
The U.S. Senate candidate would send what she called $300 “affordability relief checks” to eligible Mainers.
The governor’s definition of eligibility flies in the face of conventional poverty standards.
Under Mills’ proposal, 725,000 people would be eligible, with income caps she described as $75,000 for single filers, $112,000 for heads of household, and $150,000 for joint filers.
Current poverty guidelines describe a single individual as poor if his or her income ranges between $31,300 and $15,650.
Even by the most conservative measure, Mills’ $75,000 plan, for instance, exceeds the maximum $31,350 threshold by more than two times.
The other problem with her slush fund is that the so-called Rainy Day Fund has strict rules for its use.
The fund is not designed for political payouts – it’s a reserve account for unexpected crises and providing money during economic calamities.
Officially called the Maine Budget Stabilization Fund, the money it contains is reserve to be used to offset a general-fund revenue shortfall.
The fund had a balance of $1.03 billion as of June.
