Maine’s Rainy Day Fund Hits a Historic High of $491 Million
Governor Janet Mills says Maine's rainy day fund is higher than it has ever been, with nearly $492 million in the coffers.
Maine's Budget Stabilization Fund, also known as the Rainy Day Fund, was established in 2005, as a way to offset any shortfall in the General Fund. This money can also be used to fund payments of death benefits for law enforcement officers and firefighters. The amount of the fund cannot exceed 18% of total General Fund Revenues.
On Tuesday, Governor Mills announced that her Administration had deposited another $223.6 million into the Rainy Day Fund, bringing it to a historic high of $491.9 million. Since taking office, her administration has deposited more than $282 million, more than doubling the fund's balance.
This sound fiscal management has positioned us well to continue our economic recovery and to send a strong message to bond rating agencies about our financial stability.
Mills says she's proud of the fact that her Administration and the Legislature were able to come out of the challenges of the pandemic with such a positive result. With many other states using these funds to make up for shortfalls during the pandemic, Maine was able to add to the state's emergency funds.
Another positive result of the money management of the past year, Moody's and Standard & Poor's credit rating services have cited Maine's governance practices and its reserves in the Budget Stabilization Fund as grounds for reaffirming Maine's Aa2 and AA bond ratings, respectively, and for rating Maine's debt as stable during the pandemic. Other states have not fared as well.