Understanding Maine’s Budget Process
Maine’s budgeting process is a complex yet essential function of government. Understanding this process is a key part of building strategic plans to advance any legislative priorities. Check out this quick overview of the biennial vs. supplement process. The Resurgam Team has years of experience working on Maine budgets and can help support you and your organization through the process.
The Biennial Budget: Maine’s Primary Fiscal Plan
Maine operates on a two-year budget cycle, also known as a biennium. The biennial budget is the state’s primary financial plan and is proposed by the governor at the beginning of each legislative session. It outlines expected revenues and planned expenditures for a two-year period and requires approval from the state legislature.
Timeframe: Covers a two-year period, beginning on July 1 of an odd-numbered year and ending on June 30 of the next odd-numbered year.
Process: The governor submits a proposed budget early in the legislative session. Lawmakers then review, amend, and negotiate the budget before passing it.
Scope: Includes projected revenues, major spending allocations, and policy priorities.
Approval: Requires a majority vote in both legislative chambers and must be signed by the governor.
Stability: Designed to provide a long-term financial framework, ensuring that state agencies, schools, and other entities have a predictable funding structure.
The Supplemental Budget: Adjusting for Changing Circumstances
While the biennial budget sets the overall financial plan for two years, unforeseen circumstances—such as economic shifts, unexpected expenses, or policy changes—often necessitate mid-cycle adjustments. This is where the supplemental budget comes into play.
Key Aspects of the Supplemental Budget:
Purpose: Addresses revenue shortfalls, economic changes, or emerging state priorities that arise after the biennial budget is enacted.
Timing: Typically proposed in the second year of the biennium, though adjustments can be made as needed.
Flexibility: Allows lawmakers to reallocate funds, adjust spending, and respond to emergencies without waiting for the next full budget cycle.
Approval Process: Similar to the biennial budget, it requires legislative approval and the governor’s signature. For emergency enactment, a ⅔ vote of both the House and Senate is needed.
Examples of Use: Supplemental budgets may be used to allocate additional funding for education, healthcare, infrastructure, or disaster relief efforts.
Why Both Budgets Matter
Together, the biennial and supplemental budgets ensure that Maine’s government remains fiscally responsible while also retaining the ability to adapt to changing circumstances. The biennial budget provides stability and predictability, while the supplemental budget allows for necessary mid-course corrections.
For policymakers, advocacy groups, and the general public, understanding these budget processes is essential for engaging in discussions about state priorities and resource allocation. Whether it’s funding public education, addressing infrastructure needs, or responding to an economic downturn, these budgetary tools shape Maine’s financial future.
Reach out to The Resurgam Group if you are seeking a way to understand how your organization’s goals may fit into the Maine budget process.
