Governor Announces Successful Fiscal Year End
Governor Announces Successful Fiscal Year End
AUGUSTA - Governor John Baldacci today announced that at year end Maine's books closed with a gross unappropriated surplus before any deductions for budgeted commitments of $75.2 million, including $29.2 million in revenues over budget estimates. Also included is $15 million in unexpended funds from state agencies largely resulting from the impact of the Governor's Executive Order limiting spending and maximizing savings. This is another clear indication that the Governor's strategy for Maine's economic growth is succeeding.
"When I came into office I had distinct goals: grow good paying jobs with benefits, invest in Maine's future, provide affordable health care and protect our natural resources," said the Governor. "Jobs are growing, income is growing and the tax burden is falling. We have lived within a spending cap and continued critical investments that are building a foundation for the future of Maine. Our economic plan is working. I released preliminary numbers several weeks ago and today the numbers are even more promising."
Upon taking office, Governor Baldacci faced a $1.2 billion shortfall, operating capital and rainy day reserves totally depleted, and a tax anticipation note (TAN) of $250 million. With a targeted economic strategy, the Governor has succeeded in cutting the structural gap and TAN in half. Reserves have been increased from zero to $70.1 million (with $19.6 million added this year).
Of the $75.2 million, approximately $27.1 million carried forward for Fiscal Year 2006 uses, and several other significant year end commitments:
$7.1 million for the Baxter Compensation Fund
$6.5 to General Fund Operating Capital
$13.1 million to the Budget Stabilization Fund
$13.1 million to the Retirement Allowance Fund
$1.0 million to the Loan Insurance Reserve Fund
$349,000 to the Governor's Contingent Account
$315,000 to Micro-enterprise
After all commitments have been satisfied, the State of Maine has a net unappropriated surplus to be carried forward into FY06 of approximately $6.5 million.
The Governor noted, "Maine is on a positive economic track. In addition to ending the year in the black, this year we passed meaningful property tax reduction, strengthened our commitment to investments in education, economic development and health care and took steps to control the cost of state government while making it more efficient and responsive. I am pleased with where we have finished this fiscal year, and look forward to working with the Legislature to continue enhancing the Maine economy."
Where the Surplus Comes From (in Millions)
$29.2 Revenues over budget estimates
15.0 Lapsed 05 balances resulting from Executive Order limiting spending
27.1 In budgeted balance forward
3.9 Miscellaneous small prior period accounting adjustments
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$75.2 Gross unappropriated surplus before deductions for budgeted commitments
How Surplus is Distributed (in Millions)
$27.1 In budgeted balance forward (FY 06 appropriations already approved by the Legislature)
48.1 Surplus Revenues and Lapsed Balances
41.5 Commitments Below (including reserves)
7.1 For Baxter Compensation Authority
6.5 General Fund Operating Capital
13.1 Budget Stabilization Fund
13.1 Retirement Allowance Fund
1.0 Loan Insurance Reserve Fund
0.349 Governor's Contingent Account
0.315 Micro-Enterprise Fund
6.6 FY '06 Unappropriated Surplus (available for appropriation by the Legislature)
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$75.2
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