Maine’s budget surplus has replenished the state’s “rainy day fund.”
The state government ended the 2026 fiscal year with a surplus of $148 million, according to a spokesperson for the Maine Department of Administrative and Financial Services.
Of that, $26.2 million was tucked away in the state’s rainy day fund, restoring it to the legal maximum. Under state law, the rainy day fund can total no more than 18% of the previous year’s general fund revenue, or $1.05 billion.
Later this month, when the state’s supplemental budget for the current fiscal year takes effect, $291 million from the rainy day fund will be used for a number of projects, including one-time $300 relief checks to about 500,000 Mainers. That deduction will leave more than $764 million in the fund.
“Throughout my time in office, my Administration has worked hard with the Legislature to produce responsible state budgets that invest in Maine people and improve our economy while living within our means. For the fifth consecutive year, Maine’s government has ended the fiscal year with a surplus, demonstrating that we have budgeted prudently and are on strong fiscal footing,” Gov. Janet Mills said in a Friday statement.
In May, both Moody’s and S&P Global Ratings affirmed their respective Aa1 and AA ratings for Maine, praising the state government for its “responsive budget management” and “strong fund balances and liquidity.”
The remainder of that surplus — $115.6 million — will go into the state’s highway and bridge capital fund. Additionally, the Maine Department of Transportation also will get $20.3 million in surplus from the highway fund, giving it an injection of $136 million in additional revenue.
Transportation Commissioner Dale Doughty said Friday those additional funds will allow his department to reschedule infrastructure projects that got put on hold earlier this year. In June, the Bangor Daily News reported that the Maine Department of Transportation was moving to halt up to $400 million in construction projects amid a funding shortfall.
“While these will go a long way to fulfilling Maine’s much needed capital needs this year, MaineDOT will continue to encourage lawmakers to implement a long-term solution to this perpetual issue in the years ahead,” Doughty said.