Gov. LePage says state’s $111M ‘rainy day fund’ is good, but too low
Maine ended fiscal 2015 in June with a $59 million surplus and more than $111 million in its rainy day fund, but Gov. Paul LePage said he would like more.
Following a year-end process known as the “cascade,” which funnels some excess revenues into various programs, some $24 million remained in the surplus, according to the Bangor Daily News. That money was deposited into the rainy day fund, formally known as the Budget Stabilization Fund.
According to the newspaper, LePage said he was pleased with the increase but that it still isn’t enough.
“While I’m pleased to see the Budget Stabilization Fund surpass the $100 million threshold, the current balance is too low of a reserve for a state that spends more than $3 billion annually,” the newspaper quoted LePage as saying in a written statement. “National credit agencies have warned Maine of the importance of increasing available financial reserves and I am committed to increasing the balance of the budget stabilization fund.”
Earlier this year, the Legislature enacted some of the governor’s proposals that would increase the targeted balance of the fund to 18% of annual General Fund revenues.
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