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AUGUSTA — Budget writers in the Legislature worked to finalize the details of their bipartisan budget deal Friday while attention shifted to whether the package they crafted can pass the Legislature with enough support to withstand a veto threatened by Gov. Paul LePage.

The Legislature’s Appropriations Committee arrived at a budget accord early Friday morning that, if passed, would raise the state sales, lodging and meals taxes for two years. The budget would use the additional revenue to restore about 65 percent of funding for municipal revenue sharing, which LePage proposed to entirely eliminate in his budget proposal, and most funding for two other property tax relief programs that LePage’s budget also proposed to scale back.

The deal struck early Friday morning would raise the sales tax from 5 percent to 5.5 percent and the meals and lodging taxes from 7 percent to 8 percent. Those rates would revert to the current figures in July 2015.

The budget will require the support of two-thirds of lawmakers in order to take effect at the start of the new fiscal year on July 1.

That threshold of support would also be necessary to override a veto by LePage, which the governor threatened Friday in his weekend radio message.

“Maine does not have a revenue problem; Maine has a spending problem,” he said. “We spend more on government than we have money to pay for it. We are victimizing the taxpayer to pay for government greed, and we are ignoring our most needy, our disabled and our elderly.”

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In the radio message, LePage also said he didn’t intend on allowing state government to shut down on July 1, which would happen if no budget passes the Legislature. But he said the responsibility for preventing a shutdown lies with Democratic leaders in the House and Senate: House Speaker Mark Eves of North Berwick and Senate President Justin Alfond of Portland.

Eves on Friday called the Appropriations Committee’s budget deal a responsible and bipartisan way to mitigate the effect of LePage’s budget proposal on cities, towns and property taxpayers.

“It’s clearly not the budget that we would pass on our own,” he said. “It’s not a Democratic budget, and it’s not a Republican budget. It’s a true compromise, bipartisan budget.”

Democratic leaders at the end of May said they favored delaying income tax cuts passed two years ago by a Republican-controlled Legislature as a way to fill the state’s budget hole. Democrats took that proposal off the table during budget negotiations earlier this week and, ultimately, the Republican committee members supported temporary sales, meals and lodging tax hikes.

“Where we started with this budget was recognizing why we were here, and that was the unfunded tax cuts that were pushed by the governor the last time,” Eves said. “When you have divided government, you have to compromise and this is what that compromise looks like.”

While Democrats are likely to back the budget deal, it’s less likely to go over well with Republican lawmakers, who hold minorities in the House and Senate. Some Republican support would be needed, however, to override a LePage veto.

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“We were so close to making some structural changes that were desperately needed within state government and, unfortunately, we’re going to ask for folks to make the change in their own home budgets in order to fund state government,” said Senate Republican Leader Michael Thibodeau of Winterport.

“We had a real opportunity here to maybe end some programs that are nonessential functions of state government, and we didn’t have the political will as a body to do that,” he added, citing funding for the state’s clean elections program and energy efficiency programs as examples.

Budget numbers

The proposed biennium budget ends June 30, 2015 and would increase revenue $178 million by:

  • Increasing sales taxes by .5 percent
  • Increasing meals and lodging taxes by 1 percent

These tax increases would end at the end of the budget in 2015

The increased revenue would be used to:

  • Restore $125 million of the $200 million cut from municipal revenue sharing.
  • Give raises to state employees and spend almost $9 million over the biennium to restore longevity and merit pay for state employees
  • Restore the $9.1 million homestead exemption program.
  • Replace the circuit breaker program with a $29 million “property tax fairness” exemption that will kick in automatically when people file their state taxes.
  • Restore funding for low-cost drugs to the elderly.
  • Restore funding for Head Start; Women, Work and Community; and other job training programs.
  • Restore $33 million to K-12 education.
  • Use $13 million in casino revenue to help municipalities pay their half of teacher retirement costs — which was proposed by the LePage administration.
  • Add 1 percent to the state’s share of essential programs and services in 2015.
  • Allow about 3,100 disabled Mainers to be moved off a waiting list for Medicaid.
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