A legislative committee this week supported giving homeless shelters in Maine additional funding, but was divided on where that money should come from.

The Housing and Economic Development Committee had been considering a bill to direct a portion of the real estate transfer tax to a MaineHousing fund for shelter operations. A majority of the committee supported an amendment to instead take the money from a housing production fund that is financed through incremental revenue raised by increasing the tax rate on real estate sales over $1 million. It wasn’t clear how much revenue that would generate.

The committee voted 7-5 on Tuesday in favor of the amended proposal. The bill, LD 2124, will now go to the full Legislature.

Committee members who voted against it said they support increasing funding for shelters, but believe the money should come from the state’s general fund.

The legislation, sponsored by Rep. Drew Gattine, D-Westbrook, is the latest attempt to increase shelter operations funding, which has remained flat at $2.5 million since 2016. It follows a one-time boost of $4.47 million approved by lawmakers last year.

Shelter directors across the state have been pushing the Legislature to use a portion of the real estate transfer tax funds to increase the subsidy, which currently covers about 7% of the cost of operating a bed. Without more sustainable funding, they said, programs in Oxford and Aroostook counties could close and others across the state will continue to struggle.

Gattine’s proposal had drawn opposition from county governments and registers of deeds, who said it would shift much-needed money away from counties and put more pressure on property taxpayers. Gattine has said it would not reduce funding that counties have historically received. Instead, counties would not get some of the extra funds from an increased transfer tax on the sale of high-end homes that went into effect in November, he said.

Sen. Rick Bennett, I-Oxford, said taking the money from the counties would put pressure on property taxes. He believes the additional shelter funding should come from the general fund.

“The state has been woefully inadequate in funding these shelters,” he said during the Tuesday work session.

Rep. Marc Malon, D-Biddeford, said he doesn’t like the idea of pulling money from the housing production fund, but supported the amendment because “funding for shelters is absolutely needed.”

“It’s crucial, and it’s a lifeline for so many,” he said.