Maine budget 'far cry' from original proposal, veto possible

Published 06/17/2015, 03:06 PM
Updated 06/17/2015, 03:14 PM
© Reuters. LePage pauses at the end of his prepared remarks as he testifies before a U.S. House Energy and Commerce Subcommittee hearing to review draft legislation on hydropower, on Capitol Hill in Washington

By Jessica DiNapoli

NEW YORK (Reuters) - A spokesman for Maine Governor Paul LePage called the $6.7 billion two-year spending plan approved by the state legislature early Wednesday a "far cry" from the governor's original proposal, setting the stage for a possible veto.

LePage, who has a history of vetoing legislation he does not like, has 10 days, excluding Sundays, to decide on the spending plan, which changes the state's income tax bracket structure and lowers the top rate to 7.15 percent.

The state needs to enact a budget by the start of the fiscal year on July 1, and some officials have warned the state government may have to shut down if that does not happen. A two-thirds vote in the legislature would be needed to override a veto.

"This budget reflects the arduous work of Democrats and Republicans," said Senate Democratic Leader Justin Alfond in a statement. "Should the governor choose to reject that compromise, that would be disappointing but certainly within his power as governor."

LePage vetoed the current 2014-2015 budget, which was enacted following a two-thirds legislative override.

Maine was one of the states Standard & Poor's singled out in June on states at risk of enacting their budgets late. Still, the credit rating agency in the report said despite the delay and the possibility of a veto, it expects the state will have a spending plan in place on time.

Jodi Quintero, a spokeswoman for House Speaker Mark Eves, a Democrat, said on Tuesday that legislative leaders are preparing for a veto and have built time into their schedule in case LePage uses his veto.

LePage's proposal, submitted in January, called for deeper cuts to the top income tax rate. He eventually envisions eliminating income tax in Maine.

© Reuters. LePage pauses at the end of his prepared remarks as he testifies before a U.S. House Energy and Commerce Subcommittee hearing to review draft legislation on hydropower, on Capitol Hill in Washington

Lauren LePage, the governor's daughter and the executive director of Maine People Before Politics, a political action committee, said this week that legislators need to pass income tax cuts for everyone who pays taxes.

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