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(From the Bangor Daily News) – A paid family and medical leave plan for Maine could cost employers and employees a minimum of $266 million starting in 2024, depending on how generous the benefits are, according to a study released Monday.
Cost could be a major issue as paid family and medical leave is being pushed in both the Legislature and by progressive groups at the ballot box. If enacted, the plan would make Maine the 12th state plus the District of Columbia to pass a law allowing paid time off for workers welcoming a child, recovering from a health issue, or taking care of a loved one.
Paying for the plan has remained a sticking point on the state and federal levels. A national paid leave plan was stripped from President Joe Biden’s Build Back Better agenda last October because of objections by Sen. Joe Manchin of West Virginia. That leaves the U.S. as one of a handful of countries, and the only wealthy one, to not have some form of paid medical and family leave.
There is a strong push to get a plan in place in Maine. The state’s Commission to Develop a Paid Family and Medical Leave Benefits Program, which includes lawmakers and employers, is charged with developing a plan for Legislature to consider when it reconvenes in the new year. Separately, a coalition of progressive groups is trying to get a sweeping referendum on Maine’s 2023 ballot.
Only 15 percent of Mainers currently have access to paid family leave at work, according to the Maine Paid Family Coalition, a group of pro-family leave organizations. The Maine People’s Alliance, a progressive group supporting the push, welcomed a state-level plan, saying the study shows a comprehensive leave plan in Maine is feasible.
“To make sure that Mainers will be taken care of no matter what happens in the coming months, we are collecting signatures so that in the event that Mainers need to pass paid family and medical leave at the ballot box,” a spokesperson said.
But Rep. Paul Stearns, R-Guilford, who sits on the commission, worries that the plan is too expensive, especially for smaller businesses. He would like to see employees shoulder most of the plan’s cost, although the study recommends equal cost sharing.
“The numbers that were reported are a long, long way from anything that the Legislature will end up putting into law,” he said.
The study estimates that start-up expenses in 2024 would be $40 million, plus several million for staffing. Contributions would start on Jan. 1, 2024, with benefits effective on Jan. 1, 2025. The study prepared by Milliman Inc. for the Legislature used actuarial data to outline 18 plan options with who would pay for them and how much they would cost.