University of Maine System Chancellor Dannel Malloy speaks during a meeting of the University of Maine board of trustees at the University of Southern Maine in Portland on Monday. Ben McCanna/Portland Press Herald

Leaders of Maine’s public universities and community colleges are voicing support for Gov. Janet Mills’ proposed budget that includes a 4% increase for higher education and extends the state’s free community college program.

Mills released her proposed budget Friday. The two-year, $11.6 billion spending plan includes $25 million to extend the program she created in 2022 that offers Maine students free tuition at the state’s community colleges. It also includes a 4% increase in the higher education budget — up to $41 million — that will support the University of Maine System, the Maine Community College System and Maine Maritime Academy. The proposal also includes an additional $10 million to cover contributions to the newly established Paid Family Medical Leave program for public higher education employees.

During a meeting of the University of Maine System board of trustees Monday in Portland, Chancellor Dannel Malloy thanked the governor, but said there are still challenges ahead.

“That does not mean we’re home, by any stretch of the imagination. There are great fiscal challenges that have to be undertaken by the Legislature and the governor working together. But we’ve never had a start in the discussion, at least while I’ve been here, with the kind of the recommendation coming from the governor that is included in her recommendations,” he said.

His comments followed a joint statement issued Friday by the state’s three higher education systems, expressing strong support for the proposed budget.

David Daigler, president of the community college system, praised Mills’ decision to make the free community college program permanent by moving it into the state’s baseline budget. In the past, that funding has come from one-time allotments in each budget.

“This is a powerful statement to Maine students and families that the state is investing in them to build stronger families, a stronger workforce, and a better future for all Mainers,” Daigler said. “This funding is critical to continue the good work happening at Maine’s community colleges, supporting our faculty, adjuncts, staff and students.”

More than 17,000 students have enrolled in a Maine Community College tuition-free since the fall of 2022, according to the system. The state offers up to two years of tuition-free schooling to full-time students who received a high school diploma or GED.

The higher education leaders also celebrated the governor’s proposed support for their costs associated with the Paid Family Medical Leave program, which went into effect with the new year and imposes a 1% payroll tax that is equally split between employers and employees. Mills included $10 million in her budget to cover both the employer and employee contributions at public colleges and universities — roughly 12,200 people according to the statement.

In recent years, the University of Maine System has seen financial challenges like state funding that hasn’t kept up with inflation and declining enrollment. There was good news this school year, however, when the system reported a 3% growth in undergraduate and graduate students, the first year-over-year increase in decades.

Daigler and Malloy co-authored a budget request to Mills in the fall, asking for the continued community college tuition program, increased funding to respond to rising operating costs, and greater higher education infrastructure investments. The state university and community college systems and Maine Maritime have a combined $2 billion in deferred maintenance.

Interim Maine Maritime Academy President Craig Johnson also celebrated the proposed budget. The Castine-based public college is focused on marine engineering, science and transportation, and enrolls about 950 students.

“Maine Maritime Academy is uniquely positioned to offer an academic experience and workforce training that propels our students into successful post-graduate careers all over the world and in Maine,” Johnson said. “We fully recognize the financial challenges facing our state and applaud the support for both our ongoing programs and the mission-critical capital projects underway to support our students.”

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