In budget address, Mills proposes targeted tax increases on cigarettes, cannabis
Photo / Jim Neuger
Gov. Janet Mills touted Maine's strong economic growth in Tuesday's state of the budget address to lawmakers in Augusta.
Gov. Janet Mills is calling for targeted tax increases on cigarettes and cannabis as part of her proposed $11.7 billion budget for the final two years of her administration, setting the stage for a showdown with Republican lawmakers.
The measures aim to plug an expected budget gap of around $450 million, Mills noted in Tuesday night’s state of the budget speech in Augusta.
“I am pleased to say that Maine is in better shape than many other states, but we have work to do to enact a balanced budget as required by the Maine Constitution,” the Democrat said in a televised address that ran more than an hour. “That work will be hard, but we’ve done it before.”
Underscoring her preference for “targeted” tax increases, Mills has suggested raising the excise tax on cigarettes by $1 per pack, bringing the total to $3 per pack. That puts Maine in the middle of its New England neighbors, which is still “relatively low,” she said.
In addition, lowering the excise tax and increasing the sales tax on cannabis would put Maine “in the middle of the pack among the states for cannabis taxes,” she said.
Mills also called for better regulating the medical cannabis market with testing and tracking requirements to ensure consumers that products are safe.
“We cannot continue to encourage the wild west of medical cannabis, which is contributing to the illicit market that has emerged — and that needs to be fought — across rural Maine,” she cautioned.
On the broader economy, Mills boasted that growth is outpacing the national average, including the rest of New England and large states like New York and California while admitting that the cost of living is too high in Maine and elsewhere.
"While not everyone is feeling it," she said, "our economy is strong."
Republican response
Republican leaders took immediate umbrage with Mills' proposed budget, which Senate Minority Leader Trey Stewart, R-Aroostook, said has “zero” Republican votes.
“This budget is the worst in decades,” he said in his televised response. “The governor has lied to us all in her promises not to raise taxes on Maine people.”
Along similar lines, House Minority Leader Billy Bob Faulkingham, R-Winter Harbor, said, “This tax-and-spend mentality is threatening our children’s future.”
Call for unity
Mills, who entered the House chamber to the heckling of a handful of peaceful protesters, wrapped up her speech with a call for unity, encouraging lawmakers “to reserve judgment .. and not create barriers to compromise.”
“I am ready to work with you in the coming months on a budget that is balanced, that is fiscally responsible, that strengthens our economy and that lifts up our greatest asset of all — the people of Maine," she said.
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