Governor Mills & Treasurer Perry Announce Fitch Upgrades Maine's Credit Rating; State Ends FY2025 With Record $1B Rainy Day Fund

Healthy reserves, budget surplus in FY2025, and credit rating upgrade demonstrate Maine's prudent budgeting and fiscal health under Governor Mills

Governor Janet Mills and State Treasurer Joe Perry announced today that Fitch Ratings, one of the top international credit rating agencies, has upgraded its bond credit for the State of Maine to AA+, the second highest rating that Fitch issues.

In a statement, Fitch credited Maine's AA+ rating to the State's "proven ability to maintain significantly improved dedicated operating reserves through a challenging budget cycle," and that "Maine's 'AA+' rating also reflects strong budgetary controls and discipline, along with a low long-term liability burden that has shrunk over time."

Under Governor Mills' leadership, Maine's Budget Stabilization Fund -- or "Rainy Day Fund" -- has reached a record $1.03 billion, the maximum prescribed in statute, representing 18 percent of General Fund revenues from the prior year.

"This significant ratings upgrade from Fitch, a well-respected global credit ratings agency, combined with our healthy reserves, shows the strength of the State's financial picture," said Governor Mills. "Over the past six years, my Administration has worked hard to invest in Maine people, improve our economy, and produce responsible, balanced state budgets. I look forward to maintaining this progress for Maine people, despite the needless economic challenges and uncertainty coming from Washington."

"Governor Mills' and the Legislature's fiscal policies have allowed us to build significant cash reserves, creating flexibility and security for the state,"said Joe Perry, Maine State Treasurer. "This ratings upgrade from Fitch affirms that we are on a good path."

Ratings agency Moody's also recently reaffirmed Maine's credit rating of Aa1, their second highest possible rating, and ratings agency S&P reaffirmed its AA rating for Maine. Fitch and Moody's both upgraded Maine's rating after the state's credit rating was downgraded under the prior administration.

The Department of Administrative and Financial Services also today reported that the State of Maine ended the 2025 Fiscal Year with a $152.2 million General Fund surplus.

Since taking office, Governor Mills has repeatedly urged legislators to use restraint and pass fiscally responsible budgets that preserve core services without pushing the state's finances to the brink. Through budget deliberations this year, Governor Mills warned lawmakers that Maine -- like other states -- faces a tight fiscal environment, and that tough decisions were needed in order to keep promises to Maine people, such as free school meals, increased revenue sharing for municipalities, housing supports, and maintaining 55% support for education.

"The State of Maine once again has ended the Fiscal Year in the black, and, consistent with State law, has transferred unappropriated funds to the accounts as directed by the Legislature," said Kirsten Figueroa, Commissioner of the Department of Administrative and Financial Services. "Thanks to the leadership of Governor Mills, the State continues to operate in a fiscally responsible manner, with a surplus and with a Budget Stabilization Fund of more than $1 billion."

According to statute, when year-end revenues exceed projections and result in an unappropriated General Fund surplus, surplus funds are transferred to certain accounts -- including the Budget Stabilization Fund -- in order of priority through a process known as the "cascade" as determined by the Legislature.

After priority transfers are met, Maine law requires dividing the remaining General Fund surplus into an 80/20 percent split between the Budget Stabilization Fund and the Highway and Bridge Capital Fund. This year's cascade allocated $79.4 million to the Budget Stabilization Fund and $33.8 million to the Highway Fund.

"The nearly $34 million will be used to ensure this year's construction as defined in our three-year work plan is adequately funded," said Bruce Van Note, Commissioner of the Maine Department of Transportation. "The plan includes projects that will improve roads and bridges, enhance safety, and increase economic opportunity through upgraded transportation infrastructure across the state."

For this Fiscal Year, the Legislature also identified two additional priorities to receive one-time fiscal support through the cascade: the MaineCare Stabilization Fund and the Maine Center for Disease Control and Prevention Fund. View the complete statutory allocation of the cascade as prescribed in law (PDF).