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Maine State Budget Office

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Maine State Budget Office
Agency nameMaine State Budget Office
Formed1970s
PrecedingBureau of the Budget
JurisdictionState of Maine
HeadquartersAugusta, Maine
Chief1 nameDirector
Parent agencyOffice of the Governor of Maine

Maine State Budget Office

The Maine State Budget Office advises the Governor of Maine, prepares the biennial executive budget, and coordinates fiscal policy for the State of Maine alongside the Maine Legislature, Office of Program Evaluation and Government Accountability (OPEGA), Maine Department of Administrative and Financial Services, and the Maine Treasury. The office interacts with executive agencies such as the Maine Department of Health and Human Services, the Maine Department of Education, and the Maine Department of Transportation, and with federal partners including the United States Department of the Treasury, the United States Office of Management and Budget, and the United States Congress on grant and revenue matters.

Overview

The office serves as the central fiscal policy staff for the Governor of Maine and the Maine Legislature’s budgetary committees, producing expenditure estimates, revenue forecasts, and fiscal notes used by the Joint Standing Committee on Appropriations and Financial Affairs (AFA), the Maine Commission on Governmental Ethics and Election Practices, and the Maine Professional Employees Association-represented staff. It coordinates with state entities such as the Maine State Police, the Maine Public Utilities Commission, and the Maine Judicial Branch for program funding, working within statutory frameworks established by the Maine Constitution, the Maine Revised Statutes Annotated, and precedents from administrations like those of governors Jared Golden (as Representative), Paul LePage, Janet Mills, and John Baldacci.

History

Rooted in mid-20th-century budgeting reforms that affected state agencies such as the Bureau of the Budget and models from the United States Bureau of the Budget and Jimmy Carter-era federal practices, the office evolved during periods marked by fiscal crises like the early 1980s recession and the 2008 financial crisis. Influences include fiscal reforms in states such as New York (state), Massachusetts, and Vermont, and national policy developments involving the Congressional Budget Office and the Government Accountability Office. Key historical milestones involve adoption of biennial budgeting, implementation of program-based budgeting practices, and the institutionalization of revenue forecasting tied to events such as the Great Recession and the COVID-19 pandemic.

Organization and Leadership

The office is organized into divisions mirroring budget functions: revenue forecasting, expenditure analysis, capital budgeting, and policy analysis, with liaisons to the Maine Department of Health and Human Services, the Maine Department of Corrections, and the Maine Department of Transportation. Leadership traditionally includes a Director appointed by the Governor of Maine and confirmed by the Maine Senate, supported by senior analysts with backgrounds from institutions such as the Federal Reserve Bank of Boston, the University of Maine, the Maine Policy Institute, and the New England Public Policy Center. The Director works closely with the State Controller of Maine, the Commissioner of Administrative and Financial Services, and the chairs of the Joint Standing Committee on Appropriations and Financial Affairs (AFA).

Functions and Responsibilities

Primary responsibilities include preparing the governor’s biennial budget proposal submitted to the Maine Legislature, developing revenue forecasts used by the Maine Revenue Services and the Legislative Fiscal Office, producing fiscal notes for proposed legislation referred by the Committee on Appropriations and Financial Affairs, and managing capital planning that affects projects overseen by the Maine Turnpike Authority and the Maine State Housing Authority. The office conducts analyses related to Medicaid funding involving the Centers for Medicare & Medicaid Services, workforce-related expenditures tied to the Maine Department of Labor, and federal grant matches relating to the United States Department of Health and Human Services and the United States Department of Transportation.

Budgeting Process and Methods

The office employs forecasting techniques aligned with practices used by the Congressional Budget Office, the Office of Management and Budget (OMB), and regional authorities like the New England Economic Partnership. Methodologies include consensus revenue forecasting coordinated with the Maine Revenue Forecasting Committee, program-based budgeting similar to models from the Government Accountability Office, and capital budget scoring comparable to methods used by the Treasury Board of Canada Secretariat in international comparisons. The process integrates inputs from agencies such as the Maine Department of Education, the Maine Department of Health and Human Services, quasi-independent entities like the Maine Maritime Academy, and advisory reports from academic centers including the Maine Center for Business and Economic Research at the University of Southern Maine.

Reports and Publications

The office issues the governor’s biennial budget book, revenue forecasts, fiscal notes, and mid-session reviews that are referenced by the Maine State Legislature, the Maine Policy Review, and media outlets such as the Portland Press Herald and the Bangor Daily News. Publications often cite intergovernmental documents from the United States Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics, and are used by policy researchers at institutions like the Maine Heritage Policy Center and the Maine Center for Economic Policy.

Relationship with State Government and Legislature

The office functions as the executive branch’s fiscal staff in negotiations with the Maine Legislature’s appropriations committees, collaborating with the Legislative Council, the Office of Program Evaluation and Government Accountability (OPEGA), and the Legislative Fiscal Office to reconcile the governor’s priorities with legislative amendments. It provides testimony before committee hearings involving legislators such as chairs of the Joint Standing Committee on Appropriations and Financial Affairs (AFA), coordinates with the Governor’s Office on vetoes and supplemental budgets, and interfaces with municipal officials from cities like Portland, Maine, Bangor, Maine, and Lewiston, Maine regarding state aid and local fiscal impacts.

Category:State agencies of Maine