Enacted Budget – Fiscal Years 2026-2027
Maine Governor Janet Mills signed the state’s current services budget for fiscal 2026-2027 into law on March 21 to ensure continued operations of state government, providing for $11.3 billion in general fund spending. She called the legislature back into session to consider further budget investments, and subsequently, the governor signed an additional budget bill into law on June 23. According to a legislative staff summary, the biennial budget, after amendments, provides for general fund appropriations of $11.64 billion total, including $5.80 billion in fiscal 2026 and $5.84 billion in fiscal 2027. This represents annual increases of 5.2 percent for fiscal 2026 and 0.8 percent for fiscal 2027. The budget is based on undedicated revenue projections of $5.61 billion in fiscal 2026 (a 0.0 percent growth rate from fiscal 2025 estimated revenues) and $5.77 billion in fiscal 2027 (a 3.0 percent annual increase). After other adjustments and transfers, total projected resources are estimated at $5.74 billion in fiscal 2026 and $5.75 billion in fiscal 2027. The biennial budget estimates a beginning general fund balance of $157 million, and ending balances of $100 million at the end of fiscal 2026 and $7 million at the end of fiscal 2027.
The budget maintains fiscal constraint while making “important investments in Maine families, children, and seniors, our higher education institutions, housing, and more,” said the governor in a press release. The budget provides one-time funding for urgent needs, including funds to close a deficit for fiscal 2025 in the state’s MaineCare (Medicaid) program and to protect forests in the state from spruce budworm. The enacted budget also includes tax increases on cigarettes and cannabis, as well as new taxes on streaming and pensions.