Dear Neighbor,
2011 has been a year of change and transition in Augusta. With new leadership in the House, Senate and
Governor’s office, our state has experienced major change in direction and approach. We came to Augusta facing a large budget gap - due in part to a reduction in federal funds - and widely divergent opinions on how to address our need for economic development. We also saw ideological differences take center stage, and faced many divisive and politically-charged debates.
Through it all, I tried to remain focused on the charge I received from the people in our district to focus on rebuilding Maine’s economy for the future and making targeted investments to create new jobs. I am pleased that we were successful in moderating some of the more dramatic proposals that would have had a real and permanent impact on Maine’s environment, and the health and safety of our families and neighbors.
At the same time we worked to bring sensible proposals forward for Maine people. I worked particularly hard this session to ensure that children receive protection from bullying in school. I submitted LD 1237, “An Act to Prohibit Bullying in Schools”, with the goal of creating statewide guidelines for schools to use in dealing with this serious problem. The bill received strong support both in the committee and initial floor votes, but certain groups raised questions about the bill at the last moment. We were successful in getting the legislation carried over until January when we can continue further discussions and work on this important issue. I will continue to work hard every day to represent our community’s interests in our work in Augusta, and I appreciate your feedback on the issues that are important to you.
New Maine laws passed in 2011
How changes in state law may impact your home or business.
Education, economic support and job protection
• Created a work-share program that helps employers to avoid layoffs by reducing employees’ hours and allowing part- time unemployment benefits until conditions improve.
• Passed tax credits to help small businesses grow and attract new investment to our state, especially in rural areas.
• Provided tax credits to support Maine-made industries like lobstering, and commercial fishing, and promoted investment in maple syrup production and tourism marketing.
• Passed a series of common-sense reforms to streamline the regulatory process for Maine businesses and new projects.
• Established the Maine Farm and Fish to School Program to increase the purchasing by schools of food raised, grown or harvested by Maine farmers and fishermen.
• Increased transparency and accountability for college graduation and retention rates to better prepare students for 21st Century jobs.
Public safety, health, and the environment
• Made the dangerous drug “Bath Salts” illegal; prohibited the operation of a commercial motor vehicle by a person taking methadone; and increased the penalty for such violations.
• Took steps to strengthen laws preventing strangulation, domestic and sexual violence and worked to standardize policies to better protect victims of domestic violence.
• Strengthened the Kids Safe Products Act, keeping the toxic chemical BPA out of children’s products.
• Protected children from pesticide spraying on school grounds.
• Prohibited texting while operating a vehicle.
• Strengthened the laws to protect children against sexual predators and improve public access to information on the sex offender registry.
• Passed laws to improve access to dental care.
• Passed laws to increase access to lead testing for children and extended the reach of home visitations.
Major Changes to Health Insurance
The Legislature passed a measure that overhauls Maine’s insurance laws and makes significant changes to the protections that have existed in Maine law for decades. I voted against this bill, but I want to know how it impacts you.
Did your insurance rates go up or down? Did the quality of your coverage improve or decline? Please let me know what impact the law has on your business and family so we can get a better picture in Augusta of the law’s impact. Call or email me with your experiences with the law as its impacts take shape.
Some of the major components in the new law include:
• Allowing insurers to charge more than before based on where you live, your age or your occupation.
• Creating a reinsurance pool for Mainers with higher health care costs, and assesses a new fee on all insurance policies to pay for the pool.
• Allowing insurers to create location incentives, which may require Mainers travel further distances for certain procedures.
Estimates of the impact of the new law showed mixed results. A Bureau of Insurance analysis reported it will increase rates for many Maine people, especially individuals living in rural areas, micro-businesses and those over the age of 48. However, rates for young and healthy Mainers are likely to go down in some parts of the state.
The 2012-2013 State Budget
The phase out of federal American Recovery and Relief Act monies, combined with significantly reduced federal spending, left legislators with difficult decisions to make on where to place our resources. Some of the more significant aspects of the new budget include:
Lower income taxes
Starting in 2013 for individuals, the state’s top tax rate will be reduced from 8.5% to 7.95% and income currently being taxed at the 2% rate will no longer be taxed. Also, individuals will be able to take the full federal amounts for both the single and married filing joint deductions as well as the personal deduction on their state income tax. The budget also creates a new investment tax credit for economically distressed regions of the state, and the state will allow businesses to take certain individual deductions on equipment (federal section 179) in a more favorable manner resulting in over $18 million in immediate tax savings in this budget. The Legislature also doubled the estate tax exemption to $2 million.
Changes to pensions
The Legislature’s bipartisan budget makes changes to the pension system which will reduce the state’s unfunded pension liability. The state budget includes a three year freeze on cost of living adjustments (COLA) to state pensions; however they included provisions to provide non-cumulative COLA payments in the second, third and fourth years if funding is available. The COLA is capped at three percent, and applies to the first $20,000 of income.
Education and critical services
The Legislature preserved funding for General Assistance, and accepted a provision to allow for drug testing for beneficiaries convicted of drug crimes; created limits with flexibility on state temporary assistance benefits; funding to K-12 education dropped slightly, largely due to reduced federal funds, and the state universities received level funding.