Legislature Passes Bipartisan Budget to Fund Child Care, Paid Family Leave, Retiree COLAs & More

On Wednesday morning, the Legislature's Appropriations Committee came to a bipartisan agreement on a roughly $800 million bipartisan spending deal that provides funding to make child care more affordable and accessible, boost wages for child workers, provide cost-of-living increases for retired state employees, create a statewide paid family and medical leave program and increase retirement security for retired state workers.

HIGHLIGHTS OF THE BUDGET

Doubles salary stipends for child care workers. The budget increases the salary stipends for all child care workers from $200 to $400. This will help qualified professionals afford to remain in the industry and help providers retain staff.

Boosts the child care affordability program. The child care affordability program makes it easier for income-eligible working families to afford child care. The budget would increase eligibility for the program from 85 to 125 percent of the state’s median income. The change would take effect on Jan. 1, 2024.
 

Increases Benefits for Maine State Retirees. The budget dedicates $19.8 million for a one-time 3 percent cost-of-living adjustment (COLA) for retired State employees. The one-time adjustment would provide a maximum benefit of $726 and an average benefit of $527 to approximately 37,600 state sponsored plan retirees.

Closing the Pay Gap. The budget takes critical steps to close the State Employee pay gap.  The budget includes provision and funding, from LD 1854, to complete a compensation and classification study; require the State to perform a compensation study every four years and conduct a comprehensive classification review every ten years. 

Supports the creation of a Paid Family and Medical Leave Program. The budget provides one-time start up funding to establish the state’s first paid family and medical leave program. Maine will be the 13th state to establish a program and benefits will be available as of May 1, 2026

Increase Retirement Security. The budget also includes provisions to support eligible older Mainers with their Medicare Part B premiums. This will benefit nearly 5,000 retired state employees. The budget also included important pension improvements for Maine State Policy Crime Lab and Computer Crime lab workers and decreasing pension penalties for teachers and state workers who retired early when 2011 pension cuts were made to give tax cuts to the rich.