TREASURER BECK SHARES KEY FINANCIAL DATA FOR AUGUST, 2024
Augusta, ME: Treasurer Henry E.M. Beck shared key financial figures today for the month of August.
The State of Maine Cash Pool represents investments permissible by Maine Statute: Title 5: Administrative Procedures and Services, Part 1: State Departments, Chapter 7: Treasurer of State, Section 135, and consists of excess money in the State Treasury that is 'not needed to meet current obligations'. The State funds and funds of component units of the State are pooled and invested by the Treasurer's Office; generally most securities are held to maturity or called when the par value of the security is received.
The Budget Stabilization Fund (sometimes referred to as the Rainy Day Fund) was created in 2003.
The Budget Stabilization Fund acts as the State of Maine’s savings account. It is a reserve balance that is set aside in good economic times to protect the state budget from the volatile changes in revenues that can occur when the economy unexpectedly slows. The goal of the Fund is to reduce the effect on the operation and services of state government and prevent policymakers from increasing taxes during sudden economic downturns.
Revenue Sharing is distributed per Title 30-A, Subpart 9, Chapter 223, Subchapter 2, Section 5681, by the 20th of each month to each municipality based on a formula whose variables include municipal populations, state valuations and tax assessments. The monthly revenue sharing pool is funded by setting aside a percentage of the State Government's sales, service provider, personal and corporate income tax receipts for the month. For a detailed description of how the funds are calculated and distributed, please see the Calculate Revenue Sharing. August’s distribution was $25,275,754.11 (July’s distribution was $27,845,871.10).
Unclaimed Property consists of money and other financial assets that are considered lost or abandoned when an owner cannot be located after a specified period of time of inactivity. It includes items such as bank accounts, uncashed checks, life insurance policies, unpaid wages, stocks and dividends, refunds, and safe deposit box contents. Unclaimed Property does not include real estate, animals or vehicles.
Each and every year, tens of millions of dollars go unclaimed by Maine residents. These financial assets are turned over by thousands of national and local businesses and organizations by a law called MRSA Title 33, Chapter 45: Maine Revised Unclaimed Property Act. http://legislature.maine.gov/statutes/33/title33ch45sec0.html. The Treasurer’s office holds these assets, free of charge, until claimed by the owner or heir. The State is currently holding approximately $337,000,000 in unclaimed property. In the month of August, 1,454 claims were made against unclaimed property totaling $972,406.19 in payments to Maine people. The highest single claim paid in the month of August was for $110,391 (uncashed checks). Last August 2023, 1,981 claims were paid for $1,015,069.14, in July of 2024 2,812 claims were paid totaling $713,352.10.
AUGUST HIGHLIGHTS: BONDS ON THE BALLOT:
This coming November, Mainers will have an opportunity to support three bond referendums to authorize a total of $65M in state borrowing. The proposals include $30M for the development and improvement of outdoor trails, $25M for research, development and commercialization in life sciences, renewable energy and agriculture, and $10M for the preservation of historic buildings. All of these proposals earned large, bi-partisan support in the legislature and now await approval from voters. In projecting the total costs of these proposals, the Office of the State Treasurer estimates $82.875 million, representing $65 million in principal and $17,875,000 in interesting, assuming an interest rate of 5% payable over 10 years.
The Research and Development Bond, or Question 2, asks voters to borrow $25 million, to provide funds, awarded through a competitive process by the Maine Technology Institute, for research and development and commercialization for Maine-based public and private institutions in support of technological innovation in the targeted sectors of life sciences, biomedical technology, environmental and renewable energy technology, information technology, advanced technologies for forestry and agriculture, aquaculture and marine technology, composites, advanced materials and precision manufacturing. The effort in the legislature was initiated by Senator Teresa Pierce of Falmouth .Supporters of this proposal include the Maine State Chamber of Commerce, The Jackson Laboratory, FocusMaine, Startup Maine, Bioscience Association of Maine, Maine Forest Products Council, MDI Biological Laboratory, BioHarbor Strategies and Aroostook Partnership. Maine last authorized a Research and Development bond in 2017.
The Historic Preservation Bond, or Question 3, asks voters to borrow $10 million, to provide funds, awarded by the Maine Historic Preservation Commission, to government and non-profit organizations to restore historic buildings. The awarding of funds is contingent on a 25% local match from either private or non-profit sources. Representative Sawin Millet of Waterford was the primary sponsor of this initiative in the legislature. Maine last authorized bond funds for historic preservation in 2010.
The Trails Bond, or question 4, asks voters to borrow $30 million, to provide funds, awarded by the Department of Agriculture, Conservation and Forestry, to government and non-profit organizations for the design, development and maintenance of nonmotorized, motorized and multi-use, publicly accessible trails, trailheads and trailside amenities statewide. Eligible projects must provide 20% matching contributions. Representative Jessica Fay of Raymond lead the effort for this proposal in the legislature. Supporters of this proposal include hundreds of organization including the Partnership for Maine Trails, Natural Resources Council of Maine, the Maine Municipal Association and the Maine Chamber of Commerce. Maine has previously bonded for trails as part of larger transportation proposals. This is the first stand-alone trails bond.
The Office of the Treasurer of State is established in Article V, Part Third of the Constitution of the State of Maine. The core duties of the Treasurer’s Office are debt management, cash management, trust fund administration and unclaimed property administration. Other major tasks assigned to the Treasurer are directorships on many of Maine’s quasi-governmental debt issuing agencies and distributions under the Municipal Revenue Sharing Program.
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