Maine Gets A "D" For Its State Finances

A new report on the financial condition of the 50 states ranked Maine no. 30 in the nation for its fiscal health prior to the coronavirus pandemic. The report found that the majority of the states were ill-prepared for any crisis, much less one as serious as what we are currently facing.

The analysis by Truth in Accounting, a non-profit government finance watchdog group, found Maine needed $3.3 billion to get out of the red, or $6,700 from each of its taxpayers.

According to the watchdog's eleventh annual Financial State of the States report, Maine had $10.8 billion in bills and only $7.5 billion in available assets to pay those bills after capital and restricted assets are excluded. This resulted in a $3.3 billion shortfall, or a $6,700 Taxpayer Burden, which is each taxpayer's share of the state debt after the state’s available assets have been tapped. TIA's Taxpayer Burden indicator incorporates both assets and liabilities, including unfunded retirement obligations.

Maine was not alone in being ill-prepared for a crisis. Total debt among the 50 states amounted to $1.4 trillion at the end of the fiscal year 2019, which will only worsen as the states face varying and unpredictable effects from the global pandemic.

The bottom line is that Maine did not have enough money to pay its bills, which is why it received a "D" grade for its fiscal health.

You can read the full report here and Maine’s individual report here.