Maine Budget Watch

Maine ranks 36th in Truth in Accounting 50 State Study

Each Maine taxpayer’s financial burden equals $14,300. Read report here: 2009 Maine Financial State of the State

Despite Making Required Contributions Pension Plan Still Considered Endangered

As prescribed in Maine’s constitution, the state has been funding the Maine Public Employees Retirement System (MainePERS) in amounts equal to the annual required contributions calculated according to Governmental Accounting Standards Board rules since 1998. Despite this good funding record MainePERS was still considered endangered as of June 30, 2009, because its  asset-to-liability level is [...]

Each Taxpayer Losses An Additional $3,000 in the Market

Many Maine taxpayers’ investment accounts, including their retirement accounts, experienced huge losses during the recent downturn in the market.  But unknown to them, the downturn in the market hit them even harder.  Their share of the investment losses of the states’ retirement plans was more than $3,000. In the June 30, 2009 financial report of [...]

Retirement Systems Funding Status Considered Critical

As of June 30, 2009 Maine’s retirement plans’ funding status is critical.  According to federal pension law, a plan becomes “endangered” when its asset-to-liability level falls below 80 percent, and it’s “critical” when it drops below 65 percent. The asset-to-liability level of Maine’s retirement systems was only 57 percent. Put another way, the state had [...]

Maine’s Off Balance Sheet Liabilities Total $6 Billion

Because of accounting standards set by the Government Accounting Standards Board (GASB), Maine does not disclose more than $6 billion of retirement plans’ liabilities on its balance sheet.  (Discussion to be continued later).

Maine Accumulates $2 Billion Liability Without Knowing It

For years the state of Maine did not put money aside to fund the retirement health care benefits promised to state employees.  This deferred compensation scheme is used by elected officials to reduce current expenditures and “balance” the state budget.  Each year, as a part of their compensation package, the employees earned the right to [...]

Taxpayers on the Hook for State Retirees’ Healthcare

The State of Maine funds post retirement health care benefits for most retired State employees and legislators and for a portion of the premiums for teachers. Work for the State for 10 Years – State Will Pay Your Retirement Health Insurance Premiums For Life The State pays 100 percent of post retirement health insurance premiums [...]

Overview of the Maine Public Employees Retirement System

The Maine Public Employees Retirement System(MainePERS) is an independent public agency of the State of Maine that traces its history to 1942. By the authority granted to it by the Maine Legislature, the System administers retirement programs that cover State employees, the State’s public school teachers, judges, legislators, and employees of the 279 municipalities and [...]

Maine Budget Analysis

Maine Comptroller’s website: http://maine.gov/osc/index.htm Maine’s Comprehensive Annual Financial Reports can be found at: http://maine.gov/osc/finanrept/cafr.htm Maine is required to pass a “balanced budget”. Title 5, Chapter 149, Section 1664 of the State law requires the governor must present a general budget summary that shows the “balanced relations between the total proposed expenditures and the total anticipated [...]

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