By Michael Shepherd - Feb 11, 2022
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Good morning from Augusta.

What we're watching today

The governor accepted Republicans' demand of $500 relief checks. Some in both parties are not happy about it. The big reveal in Gov. Janet Mills' State of the State address was her plan to set aside roughly $400 million of an upcoming spending package for another round of relief checks for state taxpayers. That would equal a $500 check for 800,000 people, although eligibility has not been fully outlined. She credited top Republicans for the idea that they outlined as a top goal in December.

While House Minority Leader Kathleen Dillingham, R-Oxford, cited the giveback a one of many points of common ground with the Democratic governor in a response aired by Maine Public, she and other top Republicans reacted cautiously to the package. Many grassroots conservatives did not like the last round of relief checks signed by Mills but secured by the minority party in summer budget negotiations. In my weekly appearance with conservative radio host Ray Richardson today, he blamed Mills for not proposing ongoing income tax cuts. But this — and not that — was Republicans' opening offer.

On the other side, if Mills and Republicans hold hands on a giveback, majority Democrats are probably going to accept one as well. But progressives are not enthralled. The Maine Center for Economic Policy, which represents that wing as well on taxation, took a dim view of the "blanket" checks in a statement and suggested a sales tax credit boost to help lower-income families more.

Mills tied Republicans to the budget, so their response was centered on long-standing criticisms of her tenure. Legislative sessions in even-numbered years always colored more by electoral politics. This one is supercharged by Mills' likely 2022 showdown with former Gov. Paul LePage, a Republican. Mills looked to box his party in on the proposal with the giveback proposals as well as praising an expansion of the Opportunity Maine tax credit into a sweeping student loan forgiveness plan that was championed by Assistant Senate Minority Leader Matt Pouliot, R-Augusta.

The BDN's Caitlin Andrews caught up with Pouliot after the speech. He praised the inclusion of that program, but he pivoted to criticize Mills for not focusing on opioid epidemic or the child welfare system in the address. More generally, Republicans are dealing with Maine's huge surplus by noting it is fueled by federal aid and arguing Mills does not deserve much credit after long criticizing spending increases during her tenure.

LePage issued a statement saying the speech was delivered to "political insiders" at the State House (he is running for a third term as governor) and the spending plan is propped up by federal "funny money." It will be these arguments and not finer policy points governing the response to Mills' plan.

News and notes

— It looks like Rep. Nicole Grohoski of Ellsworth will be the Democratic nominee for a special Maine Senate election set for June in Hancock County. The two-term representative announced her entry in an email to supporters on Wednesday that also broke the news that two other candidates — including Rep. Genevieve McDonald of Deer Isle — were dropping out. Grohoski is the candidate that Republicans did not want to run against, but they have a strong chance with former Sen. Brian Langley of Ellsworth running.

— Buried in pomp and circumstance on Thursday was a Bangor Daily News Op-Ed from Jerry Reid, Mills' chief lawyer, that outlines sovereignty concessions from the governor that we reported more loosely the day before. Reid floated the idea of tax relief for tribal members and legalizing sports betting in Maine and making tribes the main beneficiary. That falls far short of the autonomy that tribes want and it is also angering lawmakers with more parochial concerns. Sen. Joe Baldacci, D-Bangor, who has signaled support for much of the sovereignty push but has Hollywood Casino in his district, called it "an exceedingly misguided proposal."

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What we're reading

— Contradicting hours of recent testimony to the contrary, Maine Corrections Commissioner Randall Liberty denied solitary confinement is used in state prisons. Supporters of a measure seeking to outlaw the practice have told stories of prolonged isolation being used as recently as this year. It underscores a debate about what constitutes solitary confinement and how difficult any problem will be to solve without a clear picture of what's happening in prisons.

— U.S. Rep. Jared Golden condemned a group that has been called a "scam PAC" and has used his name and veteran status to raise money. The "American Veterans Support Group PAC" raised $400,000 last year but spent only 15 percent of it to support candidates, sending most back to a network of vendors associated with similar political committees touting support for police and firefighters. The activity may be legal because of loose campaign finance laws. Golden called it "unforgivable" and said the group should shut down.

— Three Hawaii men were federally indicted in an alleged straw-donor scheme that benefited a political group supporting U.S. Sen. Susan Collins' 2020 reelection campaign. They include Martin Kao, the former CEO of a defense contractor that operates partially in Maine and has also been accused of defrauding a Collins-championed COVID-19 loan program. No wrongdoing on the part of Collins or her staff has been alleged. The Republican's office has it had no knowledge of allegations against Kao until media reported them.

— The burden on Maine hospitals is heavy but easing as COVID-19 transmission continues to decline across the country. Hospitals here reported fewer virus patients and a declining number of staff absences that were plaguing them during the worst of the recent omicron surge.

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Follow along today

— 10 a.m. The Legislature's criminal justice will take testimony on a bill from Rep. Grayson Lookner, D-Portland, that would ban the use of certain restraints, pepper spray and Tasers on children in state prison. Watch here.

— 11 a.m. Mills will hold a news conference at Central Maine Community College in Auburn to promote her $20 million plan to allow recent and upcoming high-school graduates to attend community college for free.

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📷 Lead photo credit: Ben McCanna, Portland Press Herald via AP

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