TREASURER BECK SHARES KEY FINANCIAL DATA FOR JULY, 2024
Treasurer Henry E.M. Beck shared key financial figures today for the month of July, and the beginning of fiscal year FY25.
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. As of the end of July, 2024, the balance in the Fund continues to stay at $968,308,562.25, since it reached its 18% cap at the end of fiscal year 2023.
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. July’s distribution was $27,845,871.10 (June’s distribution was $23,169,842.34).
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 July, 2,812 claims were made against unclaimed property totaling $713,352.10 in payments to Maine people. The highest single claim paid in the month of July was for $20,000 (cashier’s check). Last July 2023, 1,160 claims were paid for $466,452.63, in June of 2024 48,185 claims were paid totaling $10,465,515.14. NOTE: June 2024 is comparatively high due to our increased ability to use updated address data from State sources to confirm ownership of unclaimed property.
JULY HIGHLIGHTS:
Under Maine law, the State Treasurer serves on several boards. These boards and the programs they oversee relate to important aspects of our financial lives such as our pensions, home ownership, and financing education. That’s why I occasionally take the time to send these emails. If a member of your family or someone you care about has or will soon finish high school and is thinking about how to pay for future education, please be sure to read this message about services from the Finance Authority of Maine (FAME).
Pursuing and paying for education after high school can be stressful and confusing. It does not have to be that way. FAME’s mission is to help as many Mainers as possible afford and attain higher education. Fortunately, the time has finally come where we recognize there are many different educational and career pathways: community college, four-year college, military service, and vocational programs. With adequate planning and thought, students can take the pathway that works for them, minimize the need for borrowing, and start good careers.
In the coming months, here’s how FAME can help Maine students and their families:
For recently graduated high school seniors AND THEIR FAMILIES (or any Maine person pursuing higher education)
- Free one-on-one help to start or complete the 2024-25 FAFSA
It’s not too late to file the FAFSA, and FAME is here to help. Students or parents who make and attend a FAFSA help appointment from now until August 31,2024, can receive a $25 Amazon gift card. Link to FAMEmaine.com/contact - For rising high school seniors (class of 2025) AND THEIR FAMILIES
Join FAME’s e-mail/text list and learn how to pay for education after high school. FAME is offering the chance for three members of the Class of 2025 to win a $1,000 scholarship. Subscribe to FAME’s email and/or text list to receive helpful tips and timely reminders to help you fund your future education. Link to FAMEmaine.com/join
Federal Student Loan Update: What You Need to Know Now. Join national student loan expert and President of The Institute for Student Loan Advisors for an in-depth update on federal student loan repayment, including upcoming deadlines, recent rule changes, and various repayment/forgiveness options.
Registration link: https://famemaine.zoom.us/webinar/register/WN_j0b-nqeAR1u7rM7Qsi5WhA#/registration
- ADDITIONAL INFORMATION ON STUDENT LOAN PROGRAMS, EDUCATION, RESOURCES AND OTHER STUDENT LOAN SERVICES:
FAME: Student Loan Repayment Resources
Maine Revenue Services: Student Loan Repayment Tax Credit
Public Service Loan Forgiveness
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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