Maine committee hears competing claims over funding for emergency shelters in LD 2124

Senator Chip Curry convened the Joint Standing Committee on Housing and Economic Development and opened a public hearing on LD 2124, a bill that would direct a portion of increased real estate transfer tax revenue to support emergency shelter operations statewide.

The bill’s sponsor, Drew Goutine, told the committee the state’s longstanding shelter operating subsidy has not grown since 2016 and that relying on one-time funding has left shelters underfunded. "Maine State Housing estimates that it costs $102 per night to operate a shelter bed, yet the operating subsidy contributes $7.16," Goutine said, framing LD 2124 as a step toward a predictable funding stream that would not cut counties’ historical baseline receipts but would redirect a share of the marginal increase tied to recent tax changes.

Why it matters: Witnesses said predictable operating funds are essential to avoid closures and protect people at immediate risk. Supporters — including the Maine Mayors’ Coalition, domestic-violence service providers, shelter operators and advocates — described full shelters, longer lengths of stay and the human consequences of temporary funding.

Mayors and shelter leaders provided numbers and system context. Jeff Harmon, mayor of Auburn, said shelters serve people from across municipal lines and asked the state to shoulder more responsibility. Molly Feeney of Homeworthy said ESHAP currently supports 37 shelters and roughly 1,209 beds and cited a 2025 figure of about 4,300 unique people served. Dr. Katie Spencer White of Mid Maine Homeless Shelter & Services reported her organization provides roughly 25,000 bed-nights annually and serves clients from 14 of 16 counties.

Survivors and people with lived experience gave direct testimony. Samantha Carpenter, who said she was a resident of Mid Maine’s shelter, recounted nights on the street and urged lawmakers to provide a stable "foundation" rather than short-term fixes.

Provisions and projections: Supporters repeatedly described LD 2124 as phased and modest. Bob Staples explained the bill would initially direct 1% of the tax to shelter operations starting Sept. 1, 2026, rising to 1.8% in August 2027; proponents and Maine Housing witnesses estimated the change would yield "a little more than $1,000,000" to $1.2 million annually under current projections and said 100% of that new revenue would be distributed to shelters via the ESHAP formula.

County, registry and municipal opposition: A chorus of county officials, registers of deeds and the Maine Municipal Association testified in opposition to the vehicle used to fund shelters. Registers of deeds officials explained they collect the real estate transfer tax and said counties rely on the roughly 10% administrative share to fund jails, 911 dispatch and other county services. Rebecca Wharton and other registers warned that reducing the county share would shrink county general-fund revenue and likely be made up through higher property taxes.

County commissioners and administrators made the same point in different terms. Soren Millett and Carrie Kipfer said counties are already strapped — citing jail and emergency-service costs — and estimated the proposal would shift about $1.1 million in revenue away from counties based on recent collections. Tim Curtis of Somerset County suggested the committee consider state-held RETT balances or the state’s designated housing funds as alternative revenue sources rather than reducing county shares.

Committee questions and next steps: Committee members pressed proponents and opponents for data — county-by-county projections, the distribution formula and the share of shelters that rent versus own space. Maine Housing and shelter representatives agreed to provide more detailed maps, utilization and formula data at a work session. The chair closed the public hearing after in-person and remote testimony and the committee adjourned for the evening; no vote on LD 2124 was taken at the hearing.

What to watch: The committee requested county-level revenue projections, ESHAP distribution details and comparisons of alternative funding sources for work session consideration. If the committee advances the bill, it will need to reconcile the stated goal of predictable shelter funding with county concerns over lost local revenue and the political trade-offs of reallocating transfer-tax proceeds.