Public Employee Pensions
- Does not include a 2% increase in employee contribution
- Increases retirement age to 65 only for nonvested employees and new hires
- Eliminates merit pay for 2 years, freeze longevity for 2 years, money will not be taken from people’s checks
- Freeze retiree COLA for 3 years- but provide for ad hoc COLAs in the second and third year of the freeze in the cascade (lump sum check)
- Cap future COLA at 3% and caps the amount of annual retirement income eligible for COLA at an indexed $20,000.

Retired Public Employee Healthcare
- Does not require retired teachers to join the state health plan or pay a portion of health premiums
- Accepts the union’s proposal to only require retirees who retire before their Normal Retirement Age to pay 100% of health insurance until they reach normal retirement age
-Require 10 years of service for state contribution to retiree health insurance for for new hires and nonvested employees

Health & Human Services
- Does not eliminate coverage for non-categorical/childless adults making less than 100% of federal poverty level
- Does not eliminate coverage for parents of children in families making between 133% and 200% of federal poverty level
- Continues health coverage for 28,000 Mainers
- Grandfathers TANF, Food Supplement and SSI for legal non-citizens currently enrolled.
- Provides new coverage for elderly, disabled, victims of domestic violence and those found in “hardship”
- Eliminate TANF for convicted drug felons who fail a drug test except if felon participates in treatment and includes an appeal process
- Allow families to have a second chance if they violate TANF family contracts
- Creates a 60 month lifetime TANF limit with exceptions for “hardship”
- Does not make anyone receiving a federal cash benefit ineligible for general assistance
- Does not reduce reimbursement to municipalities for General Assistance from 90% to 75%

Maine Public Employees Retirement System
- Eliminates 2% increase in employee/teacher contribution
- Reduces COLA from 4% to 3%. Three year COLA freeze with three Ad-hoc non compounding COLA’s funded from Retiree Allowance Fund in Cascade. Provides a 3% COLA on the first $20,000 of indexed pension income.
- Eliminates the Governor’s proposed repeal of the solemn contractual agreement that protects employee/teacher benefits.
- Establish the retirement age at 65 for new hires/non vested employees. Implements a Retirement Incentive Program.

Retiree Health Insurance
- Establishes a two year freeze on retiree health benefits. There is no provision for a 4% cap on state paid premiums
- Persons retiring at their normal age don not have to pay 100% of their health insurance. If retiring prior to their normal age [60, 62, or 65] they are required to pay 100% of their health insurance

State Employee Compensation
- Establishes a two-year freeze on salaries and wages
- Restores longevity Pay for those eligible in 2011

Tax Proposal
- Creates two-tiered income tax schedule with a 7.95% and 6.5% rate. The 6.5% rate, which takes effect in 2012, replaces the former tax rates of 2%, 4.5%, and 7%. The 7.95% rate, which takes effect in 2013, replaces the current top rate of 8.58%. (The cost of the new 6.5% rate is $44.2 million over the biennium // The cost of the new 7.95% rate is $23.9 in 2013)
- Conforms to the federal personal exemption amount (The cost of $81.8 million over the biennium)
- Conforms to the federal standard deduction (The cost of $17.3 million over the biennium)
- Repeals the Alternative Minimum Tax (The cost of $6.8 million over the biennium)
- Provides tax exemptions/refunds to meals served at retirement facilities, bags provided by redemption facilities, parts & supplies for windjammers, fuel used in commercial fishing and tax credit for fishery infrastructure

Funding for General Purpose Aid to K-12 & Higher Education
- FY 2012: $895,000,000 ($23 million more in general funding than in 2011) // Loss in ARRA means loss of $41 million than 2011
- FY 2013: $914,000,000 ($19 million more in general funding then in 2012) // Loss in ARRA mean loss of $38 million than in 2012

- University of Maine System: $196,615,506 in both FY 2012 & 2013 (flat funded)
- Maine Community Colleges: $54,690,828 in both FY 2012 & 2013 (flat funded)
- Maine Maritime Academy: $8,611,706 in both FY 2012 & 2013 (flat funded)

Miscellaneous
- 20% reduction in circuit breaker (saves $20.2 million over the biennium)
- Business Equipment Tax Reimbursement maintained (cost $9.8 million over the biennium)
- Maine Public Broadcasting Radio reduced by $200,000 (Governor proposed $4 million cut)