Maine state budget (2010-2011)

Note: This article was last updated in 2011. Click here for more recent information on state budgets and finances.

Maine operates on a biennial budget schedule, with the FY 2010-2011 biennial budget totaling $5.6 billion. The state announced on July 20, 2010, that it ended Fiscal Year 2010 with a surplus of more than $70 million. State law required the surplus to be allocated to a number of state funds, including the rainy day fund, the Finance Authority of Maine's Loan Insurance Reserve Fund, the General Fund's operating capital and the state retirement system and retiree health fund.

Going into the fiscal year Maine had a total state debt of $9,972,282,018 when calculated by adding the total of outstanding debt, pension and OPEB UAAL’s, unemployment trust funds and the 2010 budget gap as of July 2010.

2011 State spending & deficit in billions

Total spending	Pension	Healthcare	Education	Welfare	Protection	Transport	Debt
$8.9	$0.8	$3.4	$1.1	$1.2	$0.4	$0.6	$6.1

2011 Local spending & deficit in billions

Total spending	Pension	Healthcare	Education	Welfare	Protection	Transport	Debt
$5.7	$0	$0.1	$2.1	$0.2	$0.4	$0.40	$3.5

Fiscal Years 2010-11

Find the state’s FY2011 Comprehensive Annual Financial Report (CAFR) compiled by the state government online.

The state's two-year budget for FY2010-11 totalled $5.6 billion.Maine ended FY2011 with a surplus of $48.9 million, 1.7 percent over the projected figure.

The state announced on July 20, 2010, that it ended Fiscal Year 2010 with a surplus of more than $70 million.

Passage of Budget

For FY 2011, Maine was facing an expected $438 million budget gap. At the time the state's budget was passed, the gap was $310 million.

On March 30, 2010, the Maine State Legislature approved the state's supplemental $5.7 billion two-year budget, which closed a $310 million gap between revenues and expenses. The Senate voted to approve it by 110-35, and the Senate tally was 31-2.Gov. John Baldacci signed the bill on April 1, 2010.

Expenditures 2010-11 Biennial General Fund Budget

Category	Amount
K-12 Education	$2,433,577,775
Healthcare-Medicaid	$1,203,267,461
Public Safety, Justice and Law Enforcement	$581,606,666
Economic Development	$75,529,848
Healthcare: Non-Medicaid	$685,144,869
Higher Education	$544,262,787
Debt Service	$244,154,949
Property Tax Relief	$70,103,958
Other	$104,395,230
Natural Resource Management	$147,723,172
Legislature	$59,323,475
Arts and Humanities	$17,568,312

Budget figures

Maine's top 2 sources of revenue were Individual Income Taxes (43.4% for the 2010-2011 biennium) and Sales & Use Taxes (32.3% for the 2010-2011 biennium).

Maine's shortfalls:

FY 2009	FY 2010	FY 2011
$129 million	$196 million	$244 million

Maine's General Fund Revenues in billions (estimated FY 2010-2013):

FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013
$3.09	$2.83	$2.78	$2.77	$2.87	$2.97

Budget background

See also: Maine state budget and finances

On or before September 1st of even-numbered years, the judicial branch, the legislative branch and each executive branch department or agency prepare a budget request for the next two fiscal years. The most important restriction on the Legislature in enacting a budget was the Maine Constitution’s guarantee that the State’s budget would be balanced in each fiscal year of the biennium which results from its prohibition on deficit financing. There were two sections in the State Constitution which address the issue. Article IX Section 14 prohibits the State from incurring long-term debt of more than $2,000,000, except for certain specified emergencies, without a vote of the people. In addition, Article V, Part Third, Section 5 prohibits the use of proceeds from the sale of bonds for current expenditures.

The Consensus Economic Forecasting Commission (CEFC) was originally established by Executive Order on May 25, 1992, in order to provide the Governor, the Legislature and the Revenue Forecasting Committee with analyses, findings and recommendations for state economic assumptions to be used in developing state revenue forecasts. Creation of the commission was in response to a recommendation of the Special Commission on Government Restructuring in 1991 to establish an independent, consensus process for state economic and revenue forecasting. Public Law 1995, chapter 368 enacted in statute the Consensus Economic Forecasting Commission, maintaining both the structure and intent of the original Executive Order.

The CEFC was required to develop two year and four year economic forecasts for the State of Maine. In performing this duty, the commission was required by statute to meet twice each fiscal year. No later than November 1st and February 1st annually the commission must develop its findings with regard to the economic assumptions or adjustments to the existing economic assumptions for the State of Maine. The commission submits its findings to the Governor, the Legislative Council, the Revenue Forecasting Committee and the Joint Standing Committee of the Legislature having jurisdiction over appropriations and financial affairs. The Revenue Forecasting Committee is required to use the economic assumptions and forecast of the commission in developing its four-year revenue projections.

Accounting principles

Maine's audit reports were published online by the Department of Audit. The Maine Department of Audit's primary responsibility was to audit the financial statements of the State of Maine and expenditures of federal programs. Neria R. Douglass had been State Auditor since 2005. The Auditor’s statutory authority was under Title 5, Chapter 11 of Maine’s Revised Statutes.

See also

• Maine Legislature
• Maine state budget (2008-2009)
• Maine state budget and finances