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ME LD1988

ME LD1988
An Act to Address Funding Needs for State Employees Affected by Federal Funding Disruptions


summary

Introduced
06/13/2025
In Committee
Crossed Over
06/13/2025
Passed
06/25/2025
Dead
Signed/Enacted/Adopted
07/01/2025

Introduced Session

132nd Legislature

Bill Summary

An Act to Address Funding Needs for State Employees Affected by Federal Funding Disruptions Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and Whereas, uncertainty and lack of clarity surrounds the distribution of federal funding to state agencies; and Whereas, without federal funding, certain state agencies may have to lay off valuable state employees; and Whereas, if there are unavoidable layoffs, the State is bound, by contractual obligations, to give 10 days' notice of an impending layoff to any bargaining unit employee; and Whereas, any state employee subject to a layoff due to lack of federal funding may qualify for unemployment benefits; and Whereas, state agencies will have to fund these unemployment benefits, which were likely not accounted for in prior budgeting; and Whereas, it is critically important that this legislation take effect before the expiration of the 90-day period; and Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

AI Summary

This bill addresses financial challenges faced by state employees when federal funding is unexpectedly disrupted. Specifically, the bill allows the State Controller to transfer up to $2.5 million from the Reserve for General Fund Operating Capital to a statewide program within the Department of Administrative and Financial Services. This transfer is intended to help cover layoff-related expenses, including the mandatory 10-day notice period for bargaining unit employees and potential unemployment benefit costs. The bill also permits the State Controller to transfer Personal Services expenditures from federal fund accounts to the General Fund account when federal funding is unexpectedly removed. These transfers are designed to provide financial flexibility and support for state agencies and employees facing sudden federal funding cuts. The bill includes a requirement that any unobligated funds be transferred back to the Reserve for General Fund Operating Capital by June 30, 2026, and it contains an emergency clause, meaning it will take effect immediately upon approval, bypassing the standard 90-day waiting period after legislative adjournment.

Sponsors (1)

Last Action

Governor's Action: Emergency Signed, Jul 1, 2025 (on 07/01/2025)

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