Treasurer Joe Perry shared key financial figures today for the month of February.
The State of Maine Cash Pool represents investments permissible by Maine Statute: Title 5: Administrative Procedures and Services, Part 1: State Departments, Chapter 7: Treasurer of State, Section 135, and consists of excess money in the State Treasury that is 'not needed to meet current obligations'. The State funds and funds of component units of the State are pooled and invested by the Treasurer's Office; generally most securities are held to maturity or called when the par value of the security is received.
The Budget Stabilization Fund (sometimes referred to as the Rainy Day Fund) was created in 2003.
The Budget Stabilization Fund acts as the State of Maine’s savings account. It is a reserve balance that is set aside in good economic times to protect the state budget from the volatile changes in revenues that can occur when the economy unexpectedly slows. The goal of the Fund is to reduce the effect on the operation and services of state government and prevent policymakers from increasing taxes during sudden economic downturns.
Revenue Sharing is distributed per Title 30-A, Subpart 9, Chapter 223, Subchapter 2, Section 5681, by the 20th of each month to each municipality based on a formula whose variables include municipal populations, state valuations and tax assessments. The monthly revenue sharing pool is funded by setting aside a percentage of the State Government's sales, service provider, personal and corporate income tax receipts for the month. For a detailed description of how the funds are calculated and distributed, please see the Calculate Revenue Sharing. February’s distribution was $26,541,633.03 (January’s distribution was $24,431,614.59).
Unclaimed Property consists of money and other financial assets that are considered lost or abandoned when an owner cannot be located after a specified period of time of inactivity. It includes items such as bank accounts, uncashed checks, life insurance policies, unpaid wages, stocks and dividends, refunds, and safe deposit box contents. Unclaimed Property does not include real estate, animals or vehicles.
Each and every year, tens of millions of dollars go unclaimed by Maine residents. These financial assets are turned over by thousands of national and local businesses and organizations by a law called MRSA Title 33, Chapter 45: Maine Revised Unclaimed Property Act. http://legislature.maine.gov/statutes/33/title33ch45sec0.html. The Treasurer’s office holds these assets, free of charge, until claimed by the owner or heir. The State is currently holding approximately $365,000,000 in unclaimed property. In the month of February, 1,724 claims were made against unclaimed property totaling $3,059,629.77 plus $6.052 million in stock payments to Maine people. The highest single claim paid in the month of February was for $1.447 million (uncashed checks) plus the $6.052 million in stock. Last February 2024, 1,419 claims were paid for $1,346,496.76, and in January of 2025 (last month), 28,788 claims were made totaling $5,355,742.27.
Note: January of this year’s figures are considerably higher than last year because of our office’s data match program with Maine Revenue Services. Using updated address information, we are able to match unclaimed funds with their rightful owners and send those funds out. 26,674 claims totaling $3,552,020.19 of January figures represent this one data match.
FEBRUARY HIGHLIGHT: SUPPORTING STATE AND LOCAL FINANCING TOOLS FOR CRITICAL INFRASTRUCTURE:
For more than a century, tax-exempt municipal bonds have been the cornerstone of state and local infrastructure financing. These bonds are pivotal for funding essential infrastructure like roads, bridges, schools, water systems, and public safety facilities. The National Association of State Treasurers (NAST) urges Congress to prioritize maintaining the federal tax exemption for municipal bonds and reinstating tax-exempt advance refunding bonds as part of its ongoing commitment to infrastructure development.
WHY TAX-EXEMPT MUNICIPAL BONDS MATTER
The federal tax exemption on municipal bonds, established in 1913, represents one of the most successful federal-state-local partnerships. It allows state and local governments to finance nearly 75% of U.S. infrastructure needs. Over the past decade, governments have issued nearly 10,000 bonds annually, averaging $391 billion per year and supporting $1.65 trillion in infrastructure investment.
KEY BENEFITS
Economic Growth: Tax-exempt bonds reduce borrowing costs by approximately 2.1 percentage points, enabling local governments to build vital infrastructure without overburdening taxpayers. It is estimated that the tax-exemption will save issuers/borrowers about $824 billion between 2026 and 2035.
Community Development: Projects funded by these bonds enhance public safety, education, healthcare, and housing. Stable Investment: Municipal bonds are a reliable investment for individuals, particularly retirees, who benefit from the bonds’ safety and predictable returns.
NEGATIVE IMPACTS OF ELIMINATING THE TAX EXEMPTIONS FOR MUNICIPAL BONDS
Eliminating the federal tax exemption for municipal bonds would profoundly impact state and local governments, communities, and taxpayers. Here are some of the likely outcomes:
Increased Borrowing Costs: Without the tax exemption, the cost of financing infrastructure projects would rise dramatically. State and local governments would pay higher interest rates on bonds, raising borrowing costs by approximately $823.92 billion over a ten year period.
Delayed or Canceled Infrastructure Projects: Higher borrowing costs could force governments to scale back, delay, or cancel critical projects such as schools, highways, and water systems, affecting economic growth and public safety.
Higher Taxes or Reduced Services: Governments would need to offset increased costs by raising taxes, cutting essential public services, or both. This would place a heavier financial burden on residents and communities, particularly those with limited resources. Absent reduced services, the increased borrowing costs that would potentially be passed onto American residents would amount to a $6,554.67 tax and rate increase for every American household over the next decade.
Reduced Investor Demand: Tax-exempt municipal bonds are a key investment for individuals, especially retirees (2023 IRS data indicates that 63 percent of tax-exempt income is reported by earners over the age of 65)2 . Eliminating the exemption could reduce investor demand, destabilizing the market and making borrowing even more expensive for governments.
Economic Ripple Effects: Infrastructure projects funded by municipal bonds create jobs and stimulate local economies. Scaling back these projects would reduce employment.
In short, eliminating the tax exemption would undermine the longstanding federal-state-local partnership that drives infrastructure development, leaving communities with fewer resources to address critical needs.
About the Office of the Treasurer: the Office of the Treasurer of State is established in Article V, Part Third of the Constitution of the State of Maine. The core duties of the Treasurer’s Office are debt management, cash management, trust fund administration and unclaimed property administration. Other major tasks assigned to the Treasurer are directorships on many of Maine’s quasi-governmental debt issuing agencies and distributions under the Municipal Revenue Sharing Program.
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