Maine Ended Fiscal Year with a Surplus

Maine’s general fund finished fiscal year 2013 with a roughly 2% surplus.

The state enjoyed a $58 million surplus on a budget a little over $3 billion for the fiscal year, according to the Maine Office of Fiscal and Program Review.

The surplus was primarily due to receiving $46 million more than expected in revenue, of which $27 million was due to higher than expected income tax revenue. Much of the increase was due to upper income taxpayers pulling income into 2012 from the future to avoid higher federal tax rates going into effect in 2013, the office stated.

There was also a very large estate tax payment in fiscal 2013, which contributed to an $8.9 million positive variance in estate tax collection.

The budget also benefited from a year-end transfer from balances related to unclaimed property of $4.8 million, or 80% more than projected.

Finally, the state gained from $6 million in appropriated but unspent money and $5.7 million in other adjustments.

Of the $58 million surplus, $42 million will be transferred to the state’s “rainy day fund.” An additional $4.1 million will go to a retirement reserve account.

In other Maine fiscal news, investments of the Maine Public Employees Retirement System were up 11% for the fiscal year, well above the state’s assumed rate of return, the office reported.

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