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Maine's Year-End Debt Profile - Fiscal Year 2005-2006
David G. Lemoine, State Treasurer
Published September 22, 2006
Tax-Supported Debt |
Description |
Totals |
General Obligation Bonds (GO's) |
Debt secured by state's full faith, credit, and taxing power. |
$467.55 million |
Authorized but Unissued GO Bonds |
Bonds authorized by voters, but not yet borrowed upon. |
$97.14 million |
Certificates of Participation (COP's) |
Debt secured by state-issued lease payments. |
$37.00 million |
|
Debt secured by the tax supported agency budgets. |
$182.22 million |
Capital Leases |
State obligations under non-cancelable leasing arrangements. |
$40.01 million |
TOTAL |
Actual and authorized tax-supported debt. |
$823.92 million |
Tax-Supported Constitutional Obligations |
Description |
Liability |
Unfunded Actuarial Liability (UAL) for the Maine State Retirement System |
Pension funds for state employees and teachers. Anticipated expenses and revenues must be actuarially balanced by 2028. |
$ 2.99 billion |
Moral Obligation Debt |
Description |
Total |
Moral Obligation Bonds |
Bonds backed by the State's moral (but not legally enforceable) promise of payment. These bonds are issued and repaid by: Maine State Housing Authority, Maine Municipal Bond Bank, Maine Health and Higher Education Facilities Authority, Finance Authority of Maine, Maine Educational Loan Authority. |
$ 3.56 billion |
Short-term Financing |
Description |
FY 06-07 Borrowing-to-date |
Bond Anticipation Notes (BANs) |
Short term promissory notes issued and repaid within a fiscal year to provide funds for bond projects. Drawn on the balance of authorized but unissued ($97.14 million, above.) |
$40.07 million |
Tax-Anticipation Notes (TANs) and Lines of Credit (LOC) |
Short-term borrowings used to meet current obligations by ?bringing forward? tax revenues expected later in the fiscal year. |
none |
Bond ratings |
Moody's (Aa3) / Fitch (AA) / S&P (AA-) |
Low to Moderate Debt Burden |
Maine's net tax-supported debt per capita is considered "low" at $634 per capita. The national average is $703. Maine's net tax-supported debt as a percentage of personal income is "low" at 2.2%. The national average is 2.4%. Maine's tax-supported debt burden is "moderate" when our UAL is included. |
Debt Capacity |
Maine has no legal debt ceiling. We may borrow whatever amount is agreed upon by 2/3 of both the House and Senate and approved by both the Governor and the voters. For several years the Maine Legislature has worked with an informal understanding that no more than 5% of annual general fund revenues should be allocated to pay debt service on general obligation bonds (5% rule). |
5% Rule |
The 2007 ceiling for new GO bonds under the 5% rule is between $130 and $300 million. This range reflects varying assumptions such as spending rates, interest rates, revenue forecasts, bond ratings, amortization structures and other variables. |
Diminishing Debt Service and Expanding Borrowing Capacity under the 5% Rule |