Maine Homeless Shelters Seek Permanent Funding Source

Proposal to divert real estate transfer tax revenue faces opposition from county officials

Published on Feb. 15, 2026

Got story updates? Submit your updates here. ›

A proposal in the Maine legislature would create a permanent funding source for the state's emergency homeless shelters by diverting a small percentage of real estate transfer tax revenue. Shelter operators have pushed for a permanent increase in the state's shelter bed reimbursement rate, which hasn't changed in nearly a decade. However, county officials are skeptical of the measure, arguing it would reduce revenue for their budgets that are already strained by rising jail costs.

Why it matters

Stable and predictable funding is critical for Maine's homeless shelters to continue operating and providing services. The proposed funding source aims to address the long-standing issue of inadequate shelter funding, but faces resistance from county governments who rely on the real estate transfer tax revenue.

The details

The bill, introduced by Rep. Drew Gattine, D-Westbrook, would reduce the percentage of revenue that Maine's counties receive from the real estate transfer tax, funneling about 1-2% of revenue to the state's emergency shelter operating fund. Shelter operators have been advocating for a permanent increase in Maine's shelter bed reimbursement rate, which hasn't been raised in nearly a decade. The Legislature last year agreed to provide a one-time infusion of $4.5 million to help struggling shelters, but that funding is temporary.

  • The Legislature last year agreed to provide a one-time infusion of $4.5 million to help struggling shelters.
  • Maine's shelter bed reimbursement rate hasn't been raised in nearly a decade.

The players

Rep. Drew Gattine

A Democratic state representative from Westbrook, Maine who introduced the bill to create a permanent funding source for homeless shelters.

Erik Jorgensen

A representative from MaineHousing who told state lawmakers that the state's emergency shelters are in "desperate need of predictable support".

Sawin Millett

An Oxford County Commissioner who expressed skepticism about the proposal, arguing that it would reduce revenue for county budgets that are already overburdened with rising jail costs.

Got photos? Submit your photos here. ›

What they’re saying

“We've seen shelters close. We've shelters in crisis. The need for additional and predictable funding has been really exhaustively documented. And although last year there was a one-time bump in shelter funding thanks to you folks, that's temporary. And I think these critical entities continue to be in desperate need of predictable support.”

— Erik Jorgensen, Representative, MaineHousing (Maine Public)

“Every nickel that we lose from the state share of our services that are mandated by the state, has to be picked up somewhere, and that's the property taxpayer.”

— Sawin Millett, Oxford County Commissioner (Maine Public)

What’s next

A work session for the bill has not been scheduled, so the proposal's fate remains uncertain as county officials voice opposition to the funding mechanism.

The takeaway

This debate highlights the ongoing challenge of providing stable and adequate funding for Maine's homeless shelters, which play a critical role in supporting vulnerable populations but face financial pressures. The proposed solution to divert real estate transfer tax revenue is a creative approach, but faces resistance from county governments who rely on that revenue source.