PORTLAND, Maine (AP) — Democratic Gov. Janet Mills’ proposals for shoring up the current budget and guiding spending over the next two years reflect a pragmatic approach that holds taxes steady and offers no new programs, she said Friday.

Her two-year, $8.4 billion proposal is nearly flat — it would increase spending by 0.7% — while setting aside $61 million for the rainy day fund in the event of future fiscal crises related to the pandemic.

“There’s no drama here,” the governor insisted to reporters during an online briefing from Augusta.

Despite a $650 million shortfall, the state plans to end the year in the black thanks to $7.6 billion in federal aid, better-than-expected state revenues and the governor's curtailments to the tune of $222 million, she said. Medicaid expansion paid off by ensuring an additional 70,000 Mainers had healthcare during the pandemic, she added.

Going forward, the budget will still be driven by the pandemic, which shuttered businesses, left tens of thousands of Mainers jobless, and claimed more than 400 lives across the state.

“State government cannot be all things to all people all the time. Nor can it solve all problems or address all needs of all the people of the state. But during emergencies such as the current pandemic, the people need to depend on us to protect their children, to secure their health care, to safeguard educational and vocational opportunity and to protect our most vulnerable citizens,” she said.

Among the two-year budget proposal highlights:

— An additional $5 million would go to the Maine Center for Disease Control and Prevention for testing, vaccines and support services this year and an another $3 million would go to the Maine CDC over the next two years.

— There would be $45 million for MaineCare rate increases for nursing homes and facilities for children and older Mainers; $6 million for adults with developmental disabilities; and $7.5 million for mental health and substance use disorder services.

— Schools would receive $45 million to make progress toward a minimum teacher salary of $40,000 and to help them manage remote learning and other programs during the pandemic.

The proposal received a favorable reception from leaders of the Democratic-controlled Legislature.

“Mainers are facing enormous challenges and there is no doubt the work ahead of us is difficult, but I’m confident we’ll pass a commonsense proposal that meets the needs of Mainers across the state,” said House Speaker Ryan Fecteau, a Democrat.

Senate President Troy Jackson, also a Democrat, said the governor's proposal will guide the debate in coming weeks.

“Our work is just getting started. Next, the Legislature’s budget committee will begin to dig into the document and give Mainers all across the state the opportunity to weigh in," he said.