Maine ends fiscal year with $93.5 million surplus

The dome of the Maine State House in Augusta. (Jim Neuger/Maine Morning Star)

Maine ended the 2024 fiscal year with a $93.5 million general fund surplus, the Department of Administrative and Financial Services announced on Friday.

With year-end revenues exceeding projections, the surplus is allocated to certain accounts as directed by state law through a process known as the “cascade.”

This means that, of the excess, $2.5 million goes to the reserve for operating capital, $110,677 goes to the governor’s contingency account to restore it to the statutory maximum, $1 million goes to to FAME Loan Insurance Reserve, $2 million goes to retiree health insurance, and $12.9 million goes to the Maine Child Care Affordability Program.

These allocations still leave $75 million in excess, which, according to DAFS, was transferred for the use of transportation capital needs.

After the “cascade,” Maine law requires the remaining general fund surplus next go to the Budget Stabilization Fund, also known as the rainy day fund, and then to the Highway and Bridge Capital Fund.

However, the rainy day fund is at its statutory minimum, ending the fiscal year with $968.3 million, so nothing from the surplus went to this fund.

The maxed out rainy day fund and the surpluses Maine has seen in recent years were the focus of many objections to Democratic Gov. Janet Mills’ proposed savings in the latest state budget passed in the spring.

Ultimately, lawmakers halved Mills’ proposed $107 million in savings in the budget plan that passed. Instead of $107 million in a new, temporary reserve as Mills proposed, the budget saved $53.5 million, with $30 million for the Education Stabilization Fund and about $23.5 million for the MaineCare Stabilization Fund.

Throughout the session, Mills and DAFS Commissioner Kirsten Figueroa defended the savings as needed in light of predictions for revenue to flatten in the next biennium, as outlined by the Revenue Forecasting Committee in March. The committee will next meet to update predictions in December.

Revenues are not expected to reach the high seen in fiscal year 2022, when the surplus was $595.1 million, until at least fiscal year 2026.

“My administration will continue to keep a close eye on revenues, recognizing that they are leveling off, and work to ensure that the state remains on sustainable, solid fiscal footing in the years to come,” Mills said on Friday.

Figueroa similarly reiterated on Friday that she believes the surplus from this latest fiscal year demonstrates responsible fiscal stewardship by the governor and the Legislature.

“With revenues flattening, we will work closely with the Legislature in the coming years to ensure that spending does not exceed available resources and that we continue to remain in the black,” Figueroa said.

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