The Maine House and Senate overwhelmingly approved a supplemental budget Wednesday for 2006-07. Highlights include additional funds of:

• $41.3 million for K-12 education, bringing the total state funding for education to 50 percent for the first time in 15 years.

• $29 million for the Maine Budget Stabilization Fund, bringing the total of state reserves to $100.5 million.

• $19.2 million for the Medicare Part D federal “clawback.”

• $16.9 million to pay down debt to hospitals.

• $15 million for highway and bridge repairs.

• $10.9 for a program to supplement coverage of Medicare Part D to make sure seniors don’t lose coverage.

• $4.5 million for the Fund for a Healthy Maine.

• $3.25 million for the University of Maine System.

• $1.5 million for Maine Community College System.

• $1.2 for the Maine Clean Election Fund.

• $1 million to establish a business court.

• $600,000 to replace lost federal funding for the Maine Drug Enforcement Agency.

The supplemental budget also includes the following tax code changes:

• Conforms Maine’s tax code to the federal code for the deduction of student loan interest.

• Restores the Maine child care credit to 25 percent of the federal credit.

• Conforms state tax code to the federal code for health savings accounts.

• Provides an income tax deduction for contributions to a qualified 529 college savings account.

• Creates a tax credit for business boilers or furnaces that reduce pollution.

• Creates a tax incentive for movies made in the state.

Source: Office of Fiscal and Program Review