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June 24, 2013

Policy minute: Budget battle reaches final days

Chris Hall, CEO, Portland Regional Chamber

Welcome to our Policy Minute, a quick recap of recent policy and politics at the State House and in the Portland region from a business perspective. For more information you can read my weekly Policy Update.

So is this it? The last days of the legislative session? Or will the governor's expected veto of the proposed two-year state budget send us toward a state government shutdown? Those are the questions that State House watchers are asking this morning.

Here are some other end-of-session outcomes that you might have missed:

• Maine hospitals will get repaid via a new state liquor deal and state borrowing against the contract revenues;

• Medicaid will not be expanded in Maine — the governor's veto of the expansion bill was sustained by lawmakers;

• Energy policy remains in play as the Maine Senate gets ready to vote on overriding the governor's veto of the Omnibus Energy Bill — the House has already overridden the veto;

• Tax reform is dead for the year, including local option tax proposals, a "Buffett Rule" bill to increase income taxes on the wealthy, and the Gang of 11 comprehensive reform proposal;

• Over 100 bills are stuck in legislative limbo, passed to be enacted but lacking funding. Most of them will die because there's so little money left.

• Education policy is stuck in neutral — the governor's agenda went nowhere, as did many Democratic proposals.

• LD 90, the work force development bill passed by lawmakers earlier this year, received a small amount of funding — better than nothing, but less than hoped for by many.

Still the big question remains the fate of the next two-year state budget. We haven't had a state government shutdown since 1991 … as soon as Wednesday night you might know whether we're in for another.

In our region: Municipal and school leaders are cutting back budgets, and in some cases raising property taxes, in response to the expected state aid reductions in the proposed state budget.

Up next: If the budget gets passed and the Legislature goes home, I'll be off these pages for a couple of months. If not, I'll see you next week.

Chris Hall is the CEO if the Portland Regional Chamber. Policy Minute is part of the Chamber's effort to keep Mainebiz readers up to date on important business-related issues that impact our workplace, our community and our future.

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