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Gov. Janet Mills seeks federal aid to avoid $100M shortfall

AUGUSTA, Maine (AP) — Democratic Gov. Janet Mills said she’ll seek federal funding to make up a $100 million budget shortfall and allow the state to follow the federal government’s lead in forgiving taxes on pandemic aid. The federal government opted against taxing the forgivable loans under the Paycheck Protection Program. If the state followed suit, then that would lead to a $100 million shortfall in the state budget so the state originally intended to treat the forgivable loans as income. Mills said Wednesday that she wants state departments to start looking for any newly available federal funds that would allow Maine to offer the tax break to businesses and also maintain a balanced budget.