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LD 274

An Act Making Unified Allocations From The Highway Fund And Other Funds For The Expenditures Of State Government And Changing Certain Provisions Of The Law Necessary To The Proper Operations Of State Government For The Fiscal Years Ending June 30, 2025, June 30, 2026 And June 30, 2027

132nd Legislature (2025-2026) Introduced by Lydia Crafts

LD 274 allocates and adjusts funding from the Highway Fund and related sources to sustain Maine transportation programs for FY 2025-26 and 2026-27, with a $2M capital-savings amend

Signed by Governor
#fy25-27 #generalhighwayfund #parti
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Bill Summary · LD 274

Summary — LD 274

An Act Making Unified Allocations From The Highway Fund And Other Funds for the Expenditures of State Government and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2025, June 30, 2026 and June 30, 2027

Status: Signed by the Governor (enacted as an emergency measure)
Introduced: January 28, 2025 — Signed: March 21, 2025

Purpose / Intent

LD 274 is the biennial unified appropriations/allocation bill for Maine’s Highway Fund and a set of related special and federal funds administered largely by the Department of Transportation (DOT). It provides authorized allocations and makes law changes necessary for the operation of state transportation programs for FY 2025‑26 and FY 2026‑27 (and includes projection years). The enacted measure was treated as an emergency, taking effect upon signature.

Key provisions and changes

  • Establishes appropriations/allocations from the Highway Fund and multiple other funds for FY 2025‑26 and FY 2026‑27, organized in bill Parts (e.g., Parts A, C, F, H).
  • Allocates funding to a range of transportation-related funds and programs including:
    • Highway Fund base allocations and programs
    • Federal Expenditures Fund (federal funds managed by DOT)
    • Other Special Revenue Funds (state-restricted transportation revenues)
    • Transportation Facilities Fund
    • Fleet Services Fund (DOT)
    • Industrial Drive Facility Fund
    • Island Ferry Services Fund
  • Provides capital and operating funding levels and technical law changes required for program operations.
  • Includes an amendment (adopted in the House) that reduces capital expenditures by $2,000,000 in FY 2026‑27 (affects the Highway Fund and Other Special Revenue Funds).
  • Emergency clause: required a two‑thirds vote and the bill was enacted to be effective immediately upon the Governor’s signature.

Selected fiscal impacts (from fiscal notes)

(rounded where appropriate)
- Highway Fund appropriations (selected totals):
- FY 2025‑26: ~$521.5 million
- FY 2026‑27: ~$521.8 million
- Federal Expenditures Fund (federal DOT funds):
- FY 2025‑26: ~$651.15 million
- FY 2026‑27: ~$651.81 million
- Other Special Revenue Funds:
- FY 2025‑26: ~$247.6 million
- FY 2026‑27: ~$272.7 million (reduced by $2.0M via Part H amendment)
- Specific fund line items called out:
- Transportation Facilities Fund: $3,000,000 annually (FY25‑26 onward)
- Fleet Services Fund (DOT): ~$36.48M (FY25‑26), rising in projections
- Island Ferry Services Fund: ~$17.62M (FY25‑26)
- Highway Fund revenue impact lines in the fiscal note show net decreases (reflecting transfers/assumptions) of approximately:
- FY 2025‑26: ($9.29 million)
- FY 2026‑27: ($9.65 million)
- The fiscal notes indicate a maintained balanced budget; the FY 2026‑27 $2.0M reduction is explicitly noted as capital expenditure savings.

Who is affected

  • Maine Department of Transportation (primary implementing agency)
  • Recipients of Highway Fund and transportation-related special and federal funds: municipal road/bridge projects, ferry operations, DOT fleet and facilities, contractors and vendors for capital projects
  • Indirectly, Maine taxpayers and transportation service users through project funding and scheduling

Legislative process / timeline (highlights)

  • Referred to Transportation Committee: Jan 28, 2025
  • Committee work sessions and OTP‑AM report (amended “ought to pass as amended”): March 17–18, 2025
  • House adopted Committee Amendment A (H‑14) and House Amendment A (H‑22 to H‑14) on March 20, 2025; passed the Legislature the same day (Yeas 143 – Nays 0).
  • Enacted and Signed by Governor: March 21, 2025 (emergency effective date).

Notes

  • Fiscal figures are taken from the bill’s fiscal notes (LR2411 series) and reflect enacted amendments. The bill is largely an appropriations/allocation vehicle; it also includes necessary statutory changes to implement and manage the allocations.

Compiled from official sources — confirm details with the bill’s official record.

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