State reports $42M in surplus revenue for August
The state boasted a $42.4 million revenue surplus, exceeding expectations by 11.8%, citing federal stimulus funds, savings efforts and prudent spending.
The general fund’s revenues for the first two months of the fiscal year, which started July 1, are up $186.5 million, or 31.7%, and over budget by $77.9 million compared with projections of the nonpartisan revenue forecasting committee.
In addition to this fiscal year’s start, the state ended the previous fiscal year with a surplus, as well. About $223 million of the fiscal year’s surplus was deposited in the state’s budget stabilization fund, also known as the “rainy day” fund. When combined with previous investments into the fund, it had a historic high of $491.9 million.
The current biennial budget is balanced, does not raise taxes and is estimated to be about $456 million lower than projected general fund revenue for fiscal years 2024-25, the state said.
“State government finances are in excellent shape, with Maine continuing to record surplus revenues and operate in the black,” said Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services.
Moody’s Investors Service and S&P Global Ratings, which analyze and issue reports of credit worthiness, reaffirmed Maine’s strong credit rating and stable outlook.
S&P praised Maine’s “active budget management” and the state’s “steady progress in strengthening its reserve profile” while noting that the state’s cash pool is “very good.” Meanwhile, Moody’s said Maine has a “strong financial position with adherence to governance best practices.”
The affirmation of Maine’s ratings came as at least 22 states experienced downgrades of their bond ratings and outlooks. The strong credit ratings would let Maine borrow money at favorable rates.
“That we avoided the fiscal distress experienced broadly by other states between March and December 2020 is a testament to the wise, bipartisan decisions made by the governor and legislature from the onset of this administration, even prior to the pandemic, to invest appropriately and responsibly and to manage state government in a fiscally sound manner. That we entered the pandemic on such solid footing has made all the difference,” Figueroa said.
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