As every household knows, emergencies can occur anytime, anyplace.
Part of being Governor is being prepared and planning ahead for unexpected events like economic downturns.
Well, I want you to know that Maine is better prepared today to withstand any economic downturn than at any other time in state history because of smart, deliberate financial choices by this Administration.
Hello, this is Governor Janet Mills and thank you for listening.
This week I was pleased to announce that Maine’s Budget Stabilization Fund, commonly known as the “Rainy Day” Fund, has reached a record high of more than $968 million — that’s the maximum allowed under state law.
That fund, set aside for emergencies, is not used for operating expenses of state government.
That’s an increase of more than $750 million since I have taken office in the Rainy Day Fund.
Well, how did we get here?
The State closed the 2023 Fiscal Year at the end of June with a $141 million surplus – we’re in the black again.
State law then requires that surplus funding be distributed to certain accounts, including the Rainy Day Fund, as determined by formula.
So, we got to deposit $52.3 million into the Rainy Day Fund, bringing it to an all-time high and, actually, to the maximum allowed under law.
That’s pretty good news.
As authorized by the Legislature, we will then use some of the remaining one-time surplus to build affordable rental units in rural Maine and build low-income housing through the Low-Income Housing Tax Credit Program.
Since I took office, we have quadrupled the Rainy Day Fund and we have produced balanced budgets in partnership with the Legislature, all while making historic investments in Maine people to improve their lives and livelihoods.
For example, our most recent balanced budget strengthens education, housing, child care, and workforce, and delivers tax relief for seniors, expanding the more than $200 million in tax relief we are already providing every year. The budget also lays the groundwork for a new, flexible paid family and medical leave program.
We are building on the previous investments we’ve made in infrastructure that Maine people need like housing, transportation, child care, and education, while living within our means.
As a result, our economy is strong. In fact, our state has experienced more economic growth over the last four years than it ever did in the preceding fifteen years. And our Gross Domestic Product is gaining.
Despite the current strength of our economy, depositing a record high amount into our state’s Rainy Day Fund will ensure that we are better prepared than ever to withstand any future economic downturn or unexpected emergencies.
Moody’s Investors Service and S&P Global Ratings, companies that analyze and issue reports of states’ credit worthiness, cited our preparedness as a reason for reaffirming Maine’s strong credit ratings earlier this year.
In its statement, Moody’s wrote that “the state's finances will remain in solid shape thanks to strong fiscal governance.” Moody’s and S&P have reaffirmed Maine’s good credit ratings every year since I took office.
My Administration will continue to work hard to deliver the resources and support that Maine people need to succeed, while still saving for a Rainy Day.
This is Governor Janet Mills and thank you for listening.