Bill > LD671

This bill proposes to eliminate Maine's income tax starting January 1, 2026, and establish a new zero-based budgeting system for state government agencies. Under zero-based budgeting, which means agencies must justify their entire budget from scratch without automatically assuming previous funding levels, each department in the Executive, Legislative, and Judicial branches will be required to undergo a comprehensive budget review at least once every 8 years. In the interim years between zero-based budget cycles, agencies will be subject to periodic reviews and must provide alternative budget recommendations, including potential 5% and 10% funding reduction proposals. The bill also mandates that the Department of Administrative and Financial Services review existing statutes related to income tax and budget procedures, and submit a report with suggested legislative changes to the Second Regular Session of the 132nd Legislature. This approach aims to create more fiscal transparency and efficiency by forcing agencies to continually justify their spending and explore potential cost-saving measures.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=671&snum=132