AUGUSTA (AP) – A bill to exempt unemployment benefits from Maine income taxes is closer to final passage.

The House on Monday approved the bill, which would become effective for taxes paid starting in 2004. The Senate has also voted to give the bill preliminary approval, and the measure now faces final votes.

Rep. Joe Clark, the bill’s sponsor, said unemployment is an insurance program that’s intended to be “a safety net for people out of work through no fault of their own.”

“It’s not income, and the state should not tax a check that is intended to provide relief while someone is looking for a new job,” said Clark, a Democrat from Millinocket, which has been hit by a paper mill closing that threw hundreds out of work.

More than 30,000 Maine workers were unemployed on average each month last year, with higher rates during the winter months.

Minimum wage hike survives another close vote

AUGUSTA (AP) – A bill to increase Maine’s minimum wage to $7 an hour survived a second close vote Tuesday in the House.

Without debate, representatives voted 69-68 to endorse the proposal. A day earlier, the House approved it by a two-vote margin, 72-70.

With further House and Senate votes ahead, the bill’s prospects were unknown. The Senate had voted earlier to reject the bill, but supporters are hopeful they can pick up more support when the bill comes up again.

Gov. John Baldacci was undecided on the proposal should it reach his desk.

The bill would raise Maine’s minimum wage from $6.25 an hour to $6.65 in October of this year, and to $7 on Oct. 1, 2005.

Supporters say Maine has the New England region’s second-lowest minimum wage, but opponents are worried about the impact the wage hike might have on businesses.

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