Home/ LePage Fiscal Mismanagement May Further Impair Maine's Credit Rating
LePage Fiscal Mismanagement May Further Impair Maine's Credit Rating
Submitted by failingmaine on Mon, 01/14/2013 - 8:29pm
Moody's Investors Service issued a warning today that due to the state's ongoing fiscal issues at the Department of Health & Human Services a credit downgrade could be coming.
Moody's cites the recent federal waiver denial and continued failed management of the Governor and DHHS Commissioner Mary Mayhew as the reason for issuing the warning stating:
"[t]he announcement is credit negative as the state had hoped to use the associated $16 million of savings toward closing an $88 million healthcare budget shortfall largely caused by Medicaid cost overruns. Maine's budget has also been hampered by sales and personal income tax underperformance in the current fiscal year, leading Governor Paul LePage to propose $35 million in spending curtailments. Although Maine's healthcare deficit is a small portion (3.3%) of the state's $3 billion General Fund budget, the shortfall contributes to persistent mid-cycle budget gaps that have emerged over the past several years. Maine's health and human services expenses have been a longstanding budget challenge as cost-cutting measures have failed to meet targets."
On May 18, 2012, the Maine Governor's Ofﬁce released a report titled Making Maine Prosperous: The First 500 Days of Governor Paul LePage.
The administration touted the document as a compilation of Paul LePage’s achievements. In reality, it amounted to little more than a political puff piece which neglected to address the real condition of Maine and its deteriorating economy.